New bill to stop 'claim sharks' chasing after disabled vets : NPR
Key Points:
- A new bipartisan bill in Congress, sponsored by Reps. Chris Pappas and Don Bacon, aims to curb predatory practices by claims companies like Trajector Medical that use auto-dialers to access VA benefits hotlines and charge disabled veterans large fees.
- The bill would outlaw the use of auto-dialers to call federal agencies, targeting a key revenue method for these companies, as many veterans are unaware their benefits are being monitored and billed automatically.
- Existing federal law prohibits charging veterans for initial disability claim assistance, but enforcement is weak due to the removal of civil penalties two decades ago, prompting calls for stronger regulation.
- State-level actions are emerging, with California recently passing a law imposing penalties on firms charging veterans for initial claims help, while Louisiana's industry-friendly law was struck down as unconstitutional.
- A federal lawsuit in California alleges Trajector failed to obtain proper consent for its auto-dialer program, though the company denies wrongdoing and supports the new legislation.