Bacon, Pappas Introduce Bipartisan Legislation to Combat Predatory Practices Used by Claim Sharks

Legislation follows NPR reporting on claim sharks using auto-dialers to spam a VA hotline meant for vets

WASHINGTON - Representatives Don Bacon (NE-02) and Chris Pappas (NH-01), Ranking Member of the Economic Opportunity Subcommittee of the House Veterans’ Affairs Committee, and Congressman Don Bacon (NE-02), introduced the Veterans Benefits Information Protection Act, bipartisan legislation to combat predatory practices used by claim sharks to spam government lines with auto-dialers to collect information about veterans’ benefits.

Consumer protection laws already prohibit the use of auto-dialers from making calls to certain numbers, such as 911 and other emergency lines as well as rooms in hospitals and elderly living facilities. The Veterans Benefits Information Protection Act would amend current law by prohibiting auto-dialers from making calls to a telephone number assigned to a federal department or agency.

“Our veterans should never be targeted by bad actors trying to profit off their hard-earned benefits – many at great cost to veterans and their families,” said Rep. Bacon. “The Veterans Benefits Information Protection Act takes a commonsense approach to crack down on predatory practices and protect veterans from exploitation. I’m pleased to join Rep. Pappas in introducing this important bipartisan legislation to safeguard the benefits our veterans have earned.”

“Unaccredited, for-profit companies are using robocallers and veterans’ personal information to spam VA hotlines about their benefits, identify any increases, and immediately send them a bill for thousands of dollars. It’s outrageous and must be put to a stop,” said Rep. Pappas. “My legislation would prohibit the use of robocallers to spam government lines to shield veterans from this predatory practice. For years I have led the fight against claim sharks breaking the law and exploiting legal loopholes to defraud veterans, and I won’t stop. I will continue to combat these predatory practices, reign in claim sharks, and safeguard the benefits our veterans have earned.”

This bipartisan legislation is supported by Veterans of Foreign Wars (VFW), New Hampshire Veterans of Foreign Wars, Military Officers Association of America (MOAA), The American Legion, National Association of County Veteran Service Officers (NACVSO), and National Organization of Veterans’ Advocates (NOVA).

“The Veterans of Foreign Wars (VFW) applauds the bipartisan Veterans Benefits Information Protection Act for closing a critical loophole that currently permits predatory actors to use automated ‘robo’ calls to exploit veterans and overwhelm federal benefit hotlines,” said VFW National Legislative Service Associate Director Joe Grassi. “This commonsense legislation aligns with our unwavering interest in safeguarding veterans’ personal information, protecting VA claims support, and ensuring veterans remain in control of their earned benefits.”

"As we leverage new technology on behalf of veterans, we must also protect them from bad actors looking to use these same advances to exploit those seeking the benefits they've earned through service," said Lt Gen Brian Kelly, president and CEO of the Military Officers Association of America. "The Veterans Benefits Information Protection Act is a strong step forward, one that will make a real difference in the wider fight against claim sharks."

The bill text is here. 

Background: 

Unaccredited claims representatives, or claim sharks, are not subject to VA standards. They strategically advertise their services to avoid regulatory oversight and as a result, may engage in predatory and unethical practices that target veterans and rob them of their VA benefits. Federal laws and regulations prohibit anyone from assisting a veteran in the preparation, presentation, or prosecution of a VA benefit claim, or charging a fee for this assistance, without accreditation from VA. However, VA and other federal agencies are limited in their ability to enforce existing law because explicit criminal penalties were stripped from statute nearly two decades ago. This has contributed to the proliferation of unaccredited claims representatives in recent years, a troubling development especially as more veterans receive the benefits they’re owed thanks to the Honoring Our PACT Act.

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