Legislators Demand Action Against Companies Charging Disabled Veterans

Erik Jensen, now 67, resides in Warrenton, Oregon. Following a 30-year career in the Navy, he retired in 2007. Although veterans are eligible for complimentary assistance from recognized organizations to handle their disability benefits, Jensen opted for the services of Trajector Medical, which billed him $12,000.

Congressional Demand for Action

A coalition of 43 Congressional members is pressing for measures against non-certified firms collecting fees from veterans seeking to file disability claims with the Department of Veterans Affairs (VA).

This initiative follows an investigation that highlights how some businesses are employing forceful methods to profit from veterans, despite the VA's legal advisories on the potential illegality of these actions.

Concerns Over Unethical Practices

For a long time, warnings have been issued about unaccredited representatives—dubbed 'claim sharks'—that impose unauthorized fees, mislead consumers about their services, and exploit a loophole in federal law to evade repercussions, legislators wrote to the VA, Federal Trade Commission (FTC), and Consumer Financial Protection Bureau (CFPB). These representatives cited an alarming upward trend in the aggressive strategies of the claims consulting industry.

Among the letter's signatories were 42 Democrats and a single Republican.

The law mandates that those assisting veterans in preparing initial disability claims must hold VA accreditation and perform their services for free. Nonprofits like The American Legion and VFW have long provided such aid to veterans.

However, efforts by Congress to eliminate hurdles for veterans included the removal of criminal penalties from the law in 2006, which opportunists used to enter this loosely regulated area, leading to a sharp increase in these consulting operations over the past decade.

Diverse Veteran Experiences

Some veterans expressed satisfaction in paying for expert assistance that might result in increased long-term benefits, while others felt victimized by these consultants.

Lawmakers raised alarms about a discovered practice where companies accessed veterans' private data through VA systems to assess their disability benefits status.

NPR's deep dive into Trajector Medical, a company based in Florida, uncovered its method of utilizing automated dialing systems to reach the VA Benefits Hotline, a direct line intended for veterans. Since Trajector lacks accreditation, it cannot directly obtain relevant data from the VA, leading them to gather veterans' Social Security numbers to privately check for claim updates. Whenever a benefits increase is noted, Trajector sends their client an invoice.

Voices Against Trajector's Operations

Both veterans and previous Trajector employees mentioned to NPR that the company billed veterans for benefit increases, even when those gains stemmed from independent actions by the veterans or through assistance from accredited organizations.

Trajector refuted the allegations of misconduct, maintaining that its primary goal remains the assistance of veterans in securing their entitled benefits. The company openly states in contracts that they will use personal information to tap into VA reporting tools, asserting their role as a 'medical evidence provider' rather than form preparers or filers.

Veterans like Erik Jensen, a retired diver and nurse, relayed a different experience. After serving 30 years in the Navy, Trajector sent Jensen pages of pre-completed claims for his vetting and submission, eventually charging him $12,000 following a successful claim.

Legislative Efforts to Protect Veterans

The tactics of these firms prompt serious concerns about data privacy, consent, and financial security, particularly regarding possible violations of federal law, noted lawmakers in their correspondence.

Representative Chris Pappas of New Hampshire, a Democrat, is driving legislation aimed at regulating this sector. Pappas drafted the letter signed by a large bipartisan group, with Rep. Don Bacon of Nebraska, a retired Air Force General, as the sole Republican endorser.

Pappas supports the GUARD VA Benefits Act, advocating for the reintroduction of once-repealed penalties. In contrast, the proposal faces opposition through the CHOICE for Veterans Act, advanced by Republican Representative Jack Bergman from Michigan, suggesting a fee cap of $12,500 on consulting charges.

Looking Toward Federal Intervention

As legislative discussions remain unsolved, the VA's only current response is through dispatching cautionary letters. NPR, in partnership with The War Horse, a nonprofit news outlet, revealed that firms like Trajector persist in their operations, unchecked.

In their call for action, Congressional members urged the VA, FTC, and CFPB for feedback on their protective measures for veterans and actions to uphold legal standards. Pappas hinted at federal agencies possessing authority to combat unscrupulous practices by claims consultants.

Retired Army Colonel Paul Kantwill, who previously led the Office of Servicemember Affairs at the CFPB, conveyed that these complaints would be an immediate priority under his stewardship.