Forty-three members of Congress have asked federal agencies to act against unaccredited companies that charge veterans for help with VA disability claims. In a letter sent Wednesday to the Department of Veterans Affairs, the Federal Trade Commission and the Consumer Financial Protection Bureau, lawmakers responded to investigative reporting that found some claims consulting firms use aggressive tactics to profit from veterans, even though VA lawyers have warned that those practices may violate federal law.
The bipartisan letter, signed by 42 Democrats and one Republican, says unaccredited representatives—often called ‘claim sharks’—charge illegal fees, misrepresent their services and exploit a legal loophole to avoid accountability. Members flagged concerns about data privacy, informed consent and financial security, and asked whether firms are accessing or using sensitive VA-related information in ways that break federal rules.
By law, anyone who helps veterans prepare initial disability claims must be accredited by the VA and provide that help for free. For decades, nonprofit veterans service organizations such as the American Legion and the VFW have given that assistance. But after Congress removed criminal penalties from the statute in 2006, private entrepreneurs moved into a legal gray area, and 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 denies wrongdoing, saying it is a ‘medical evidence provider’ that does not prepare or file VA forms. NPR reported, however, that the company uses a computerized system to call the VA Benefits Hotline—a line intended for veterans—to enter clients’ Social Security numbers and pull claim updates. Because Trajector is not accredited, the VA will not share veteran data with it directly, and the hotline has allegedly been used as a workaround. The firm then bills veterans—sometimes thousands of dollars—if it identifies an increase in benefits.
Former employees and veterans told reporters that Trajector billed clients even when it had not been responsible for the benefit increase, including cases in which veterans worked with accredited nonprofits or filed claims themselves. One veteran, Erik Jensen, a retired Navy deepwater diver and nurse, said the company sent him pre-filled disability claim forms to review and submit, then charged him $12,000 after his claim succeeded. NPR reviewed 28 pages of those pre-filled forms.
Rep. Chris Pappas (D-N.H.), a co-sponsor of the GUARD VA Benefits Act and co-author of the congressional letter, is pushing legislation that would reinstate the penalties removed in 2006. A competing Republican bill, the CHOICE for Veterans Act from Rep. Jack Bergman, would instead cap what claims consulting firms can charge at $12,500.
While lawmakers debate reforms, the VA’s enforcement options appear limited. NPR and partner The War Horse obtained warning letters the VA sent to about 40 claims companies, including Trajector, yet many of those firms remain in operation. In their letter to the VA, FTC and CFPB, members of Congress asked the agencies to explain what steps they are taking to protect veterans and enforce existing law.
Retired Army Colonel Paul Kantwill, who once led the CFPB’s Office of Servicemember Affairs, told NPR such complaints should be a top priority for consumer protection authorities. Lawmakers are now seeking a clearer record of agency actions as they consider legislative fixes to curb abuses in the claims consulting industry.