Veterans Caught in Claims Industry Crossfire: Lawmakers Demand Action
Erik Jensen, a retired Navy veteran, turned to Trajector Medical for assistance with his disability benefits. Though veterans typically have free access to accredited support services, Jensen ended up paying $12,000 to the company. This situation has prompted 43 Congressional members to call for stricter regulations on unaccredited firms that charge veterans for such services.
A recent investigation by NPR revealed that numerous claims consulting companies employ aggressive tactics, potentially breaching federal laws. The VA’s legal team has cautioned that these practices might be unlawful. In a letter addressed to the VA, the Federal Trade Commission, and the Consumer Financial Protection Bureau, the Congressional group highlighted, “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 bipartisan letter, which includes signatures from 42 Democrats and one Republican, emphasizes the need for immediate intervention. Current federal laws require VA accreditation for anyone assisting veterans with initial disability claims. Furthermore, these services must be provided at no cost. Despite these regulations, a legal loophole, created in 2006 when criminal penalties were removed, has allowed the proliferation of claims consulting firms over the last decade.
While some veterans express satisfaction with paying for these services, expecting greater long-term financial gains, others feel exploited. NPR’s findings show that some companies misuse veterans’ private data to access VA systems and update clients on their disability benefits. For instance, Trajector Medical employs a computerized system to contact the VA Benefits Hotline, using veterans’ social security numbers to check on claims. The company then bills clients if it detects a benefit increase, irrespective of its involvement in the process.
Despite accusations of misconduct, Trajector Medical maintains it is committed to assisting veterans. The firm insists it operates as a “medical evidence provider” and does not submit claims. Contracts with veterans include clauses permitting the use of personal data to access VA systems. However, veterans like Jensen have reported receiving pre-filled claim forms from Trajector, contradicting the company’s assertions.
In response to these practices, legislators argue that the actions of these firms raise concerns about data privacy, informed consent, and financial security. New Hampshire Congressman Chris Pappas, who is advocating for the GUARD VA Benefits Act, believes that federal agencies have the power to enforce regulations against unfair practices. His proposed legislation seeks to reinstate penalties removed nearly 20 years ago. However, it faces opposition from the CHOICE for Veterans Act, which proposes a cap on the fees claims firms can charge.
Amidst the legislative deadlock, the VA’s current response is limited to issuing warning letters. NPR and The War Horse, a nonprofit newsroom, acquired copies of these warnings sent to 40 claims companies, including Trajector. Despite this, many firms continue operations.
Congressional representatives have urged the VA, FTC, and CFPB to provide insights into their efforts to safeguard veterans. Former CFPB assistant director Paul Kantwill stated, “If I still ran the Office of Servicemembers Affairs, these complaints would be at the top of my priority list.” As the debate continues, the need for decisive action remains critical to protect veterans’ interests.
This article was originally written by www.npr.org
