A group of 43 members of Congress is urging action against unaccredited companies that charge veterans for help filing disability claims with the Department of Veterans Affairs. The letter, sent Wednesday to the VA, the Federal Trade Commission and the Consumer Financial Protection Bureau, responds to recent NPR reporting that found the claims consulting industry uses aggressive tactics to profit from veterans, despite warnings from VA lawyers that some practices may violate federal law.
“For years, we have warned that unaccredited representatives — commonly known as claim sharks — charge illegal fees, misrepresent their services, and exploit a loophole in federal law to escape accountability,” the members wrote. The letter, signed by 42 Democrats and one Republican, says the industry’s practices “raise serious questions about data privacy, informed consent, financial security, and whether these companies are accessing or leveraging sensitive VA-related information in ways that may violate federal laws.”
Federal law requires that anyone helping veterans prepare initial disability claims be accredited by the VA and that such assistance be provided for free. Nonprofit veterans service organizations like the American Legion and the VFW have long offered that help. But after Congress removed criminal penalties from the statute in 2006, private entrepreneurs moved into a legal gray area. Over the past decade the number of claims consulting firms has grown rapidly.
NPR’s investigation focused on Trajector Medical, a Florida-based company that prosecutors and veterans have accused of predatory practices. Trajector has denied wrongdoing and says it is a “medical evidence provider” that does not prepare or file VA forms. But NPR found the company uses a computerized system to call the VA Benefits Hotline—a number meant for veterans—to enter clients’ Social Security numbers and access claim updates. Because Trajector is not accredited, the VA won’t share veterans’ data with it directly, so the firm allegedly uses the hotline as a workaround. The company then bills veterans—sometimes thousands of dollars—if it identifies a benefits increase.
Veterans and former Trajector employees told NPR the company billed vets even when it had not been responsible for the benefit increase, including cases where veterans had worked with accredited nonprofits or filed claims themselves. One veteran, Erik Jensen, a retired Navy deepwater diver and nurse, said Trajector sent him pre-filled disability claim forms to review and submit, and then charged him $12,000 after his claim succeeded. NPR reviewed 28 pages of those pre-filled forms.
Rep. Chris Pappas (D-N.H.), co-sponsor of the GUARD VA Benefits Act, co-authored the congressional letter and collected signatures. The GUARD bill would reinstate the penalties removed in 2006. It is competing in Congress with the CHOICE for Veterans Act, sponsored by Republican Rep. Jack Bergman, which would instead cap what claims consulting firms can charge at $12,500.
While lawmakers debate legislation, the VA’s enforcement tools are limited. NPR and partner The War Horse obtained warning letters the VA sent to about 40 claims companies, including Trajector; many continue to operate. In their letter to federal agencies, members asked the VA, FTC and CFPB to report what actions they are taking to protect veterans and enforce the law.
Retired Army Colonel Paul Kantwill, who once led the CFPB’s Office of Servicemember Affairs, told NPR, “If I still ran the Office of Servicemembers Affairs, these complaints would be at the top of my priority list and would be taken very seriously.”