Protecting Veterans: Bipartisan Bill Aims to Curb Predatory Practices by Claims Companies
A bipartisan bill introduced in Congress aims to address predatory practices by companies known as "claim sharks" that charge disabled veterans high fees for assistance with their benefits claims at the Department of Veterans Affairs. The bill, sponsored by Rep. Chris Pappas and Rep. Don Bacon, seeks to prohibit the use of auto-dialers by these companies to contact federal agencies. This legislation was prompted by an NPR investigation that exposed how a company called Trajector Medical used auto-dialer software to access VA benefits hotlines and bill veterans for increased benefits without their knowledge.
The bill is supported by lawmakers who believe that veterans should not be exploited for financial gain by these companies. Trajector and similar firms operate in a legal gray area, as federal law prohibits charging veterans for help with initial disability claims, but lacks effective penalties to enforce this regulation. The proposed legislation aims to crack down on predatory practices and protect veterans from exploitation by these companies.
Rep. Pappas has also introduced a bill to reinstate civil penalties and effectively ban for-profit claims consulting nationwide, which has faced opposition from the industry. Trajector and other companies use auto-dialers to monitor veterans' benefit payments and automatically bill them for any increases. The proposed legislation would outlaw the use of auto-dialers by these companies, potentially impacting their revenue streams.
Following NPR's reporting, members of Congress have called on federal agencies to address predatory practices by claims companies. In the absence of federal action, some states have implemented laws to regulate these companies. California recently signed a bill imposing penalties on firms charging veterans for assistance with initial disability claims, while Louisiana's industry-friendly law was struck down by a federal court.
A federal lawsuit filed in California alleges that Trajector did not obtain proper consent from veterans or disclose how its CallBot program uses their personal information. Trajector has denied these allegations and stated that it operates within the law. The future of the claims consulting industry may continue to be litigated in the courts as lawmakers and regulators seek to protect veterans from predatory practices.
In conclusion, the proposed bipartisan bill in Congress seeks to address predatory collection practices by companies charging disabled veterans for assistance with benefits claims. The legislation aims to prohibit the use of auto-dialers by these companies and protect veterans from exploitation. With ongoing legal challenges and state-level regulations, the future of the claims consulting industry remains uncertain as efforts are made to ensure veterans receive fair treatment and support.