Congress Moves to Ban Auto-Dialer “Claim Sharks”

In 2026 a bipartisan bill sponsored by Rep. Chris Pappas (D-NH), Rep. Don Bacon (R-NE) and two Republican colleagues was introduced in the House. It would bar for-profit claims consultants from using auto-dialers to call the VA benefits hotline and automatically billing veterans when their disability payments rise. The measure seeks to close a loophole that lets firms profit from monitoring benefit changes without clear consent.

NPR

• 2025: NPR investigation uncovers Trajector’s CallBot auto-dialer.

NPR

• Dec 2025: 40 members of Congress request VA, CFPB, FTC action.

NPR

• Feb 2024: California law imposes penalties on firms charging for initial claims.

NPR

• Jun 2024: Louisiana’s PLUS Act sets $12,500 fee cap; later ruled unconstitutional.

NPR

• May 4 2026: Auto-dialer ban introduced; referral to Energy & Commerce Committee.

NPR

Former Trajector employees say CallBot makes tens of thousands of calls each month to the VA hotline, entering veterans’ Social Security numbers and birthdates to detect rating increases. Fees are billed as five times the monthly payment increase, ranging from a few hundred dollars to over $20,000.

NPR

Eliminating auto-dialer billing would cut a major revenue stream for firms like Trajector, forcing reliance on voluntary disclosure of VA decisions. Veterans would face fewer surprise invoices, and the industry would confront an “existential threat,” potentially shifting to a capped-fee model.

NPR

Pappas called the practice “outrageous” and urged a commonsense fix. Bacon framed the bill as protection against exploitation. Newsom said California’s law “closes a federal fraud loophole.” Trajector maintains its actions are lawful and dismisses the California suit as meritless.

NPR

Industry groups argue the bill threatens a legitimate service and have pushed a competing proposal that would legalize the sector with a $12,500 fee cap. They say regulation should focus on transparency, not an outright ban.

NPR

Veterans interviewed said they did not realize Trajector was monitoring their VA hotline activity, and several reported surprise bills after benefit increases.

NPR

Trajector claims it informs veterans about CallBot usage, yet multiple veterans say they were unaware. The constitutionality of Louisiana’s $12,500 fee-cap law remains unresolved pending appeal.

NPR

• “To use a robo-dialer to make multiple calls to government lines and then just send veterans a bill whenever their eligibility has changed, it's just outrageous.” — Chris Pappas, U.S. Representative

NPR

• “Our veterans should never be targeted by bad actors trying to profit off their hard-earned benefits,” — Don Bacon, U.S. Representative

NPR

• “We rely on happy clients to self-report their successes due to our medical evidence services,” — Trajector Medical spokesperson

NPR

• “We are closing this federal fraud loophole for good,” — Gavin Newsom, Governor of California

NPR

The auto-dialer provision now awaits a vote in the House Energy and Commerce Committee. The California lawsuit over CallBot consent proceeds, and Louisiana’s fee-cap appeal is pending.

NPR