What are 'claim sharks'?
Companies that charge disabled veterans large sums for assistance with VA benefits claims, often using aggressive and misleading tactics.
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News / Government
Bipartisan Bill Aims to Protect Disabled Veterans from Predatory 'Claim Sharks'
A bipartisan bill in Congress is targeting companies known as 'claim sharks' that exploit disabled veterans by charging them hefty fees for help with their VA benefits claims. This move follows a 2025 NPR investigation that exposed the pred...
Key Insights
- The bill aims to prevent companies from using auto-dialers to access VA benefits hotlines and monitor veterans' benefit payments without their knowledge.
- Companies like Trajector Medical have been found to use such auto-dialers, automatically billing veterans when their payments increase. **Why this matters:** This exploitation can cost veterans thousands of dollars.
- Current federal law prohibits charging veterans for initial disability claims assistance, but loopholes and lack of enforcement have allowed these 'claim sharks' to thrive.
- The proposed bill seeks to amend telecommunications law to outlaw the use of auto-dialers for this purpose, while a separate bill aims to reinstate civil penalties for those who charge illegal fees.
- Several states are also taking action, with California enacting penalties for firms charging veterans for initial claims assistance and Louisiana's attempt to legalize high fees being struck down by a federal court.
In-Depth Analysis
The bipartisan bill, sponsored by Reps. Chris Pappas and Don Bacon, seeks to address the practices of companies that charge disabled veterans for assistance in claiming benefits, a service that should be free through the VA and accredited nonprofits. These companies often operate in a legal gray area, exploiting veterans through practices like automated monitoring of benefit payments.
The NPR investigation revealed that Trajector Medical, for instance, used 'CallBot' auto-dialer software to access a VA benefits hotline, track veterans' claim status, and trigger automated billing when payments increased. This practice can lead to bills ranging from hundreds to over $20,000.
While Trajector claims to disclose this practice, many veterans reported they were unaware of the extent of the monitoring. The new bill targets this practice by outlawing the use of auto-dialers.
In addition to the congressional effort, states are also cracking down. California has implemented penalties for firms charging for initial claims assistance, and a Louisiana law that allowed high fees was struck down. A federal lawsuit in California also alleges that Trajector failed to obtain consent for its CallBot practices.
**How to Prepare:** Veterans should be aware of services offered by for-profit companies and ensure they understand all terms and conditions before engaging with them. Utilize free resources offered by the VA and accredited nonprofits.
**Who This Affects Most:** This affects disabled veterans who are vulnerable to exploitation due to the complexity of the VA benefits system.
FAQ
What does the new bill propose?
It aims to prevent these companies from using auto-dialers to access VA benefits hotlines and monitor veterans' payments.
Is it legal to charge veterans for help with initial disability claims?
No, federal law prohibits charging veterans for assistance filing initial disability claims.
Takeaways
- A bipartisan bill is underway to protect disabled veterans from exploitation by predatory companies.
- 'Claim sharks' use tactics like auto-dialers to monitor veterans' benefits and charge excessive fees.
- Veterans should be cautious and utilize free resources offered by the VA and accredited nonprofits.
Discussion
Do you think this bill will effectively protect veterans? Share your thoughts in the comments below!
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Sources
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