August 2025

 

CARP has been made aware of a member who thought they were applying for the Canada Disability Benefit through a government website, only to find out they had shared personal information with a third-party business that claimed to help with benefit applications. What followed was a series of confusing emails, fine print and a “contract” that stated it would take a rather large percentage of any future benefit payment. The member was understandably shocked and confused, and they’re not alone.

 

This wasn’t the government; it was a for-profit company operating in the benefits claim industry. And while what they were doing is technically not illegal, it is deeply unethical and troubling. Unfortunately, this is not the first occurrence of such situations; there is no shortage of “legitimate businesses” in the benefits claim industry, from door-knocking salespeople to companies like this that work against the best interests of seniors in Canada. 

 

These companies and organizations operate in a grey zone, often:

• Mimic government services online, 
• Use misleading language and rely on confusion to get access to your information, 
• Charge fees and take a percentage of benefits, 
• Ignore cancellation requests.

 

This kind of behaviour is a part of a wider trend that CARP has been tracking under our Frauds and Scams campaign. While some scams are criminal, many operate just within the boundaries of the law, yet the outcome is the same: the exploitation of vulnerable Canadians through confusion, fear, and urgency.

 

We’ve seen this before with the Disability Tax Credit (DTC). Similar companies were charging up to 40% in fees to help Canadians with disabilities fill out their taxes until legislation was brought in to cap those charges. Now that the Canada Disability Benefit is rolling out, many businesses are following the same playbook.

 

We want our members to know:

• You do not need to pay a company to apply for government benefits. 
• The Canadian Disability Benefit is administered by Service Canada.
• Only apply through the government website and channels. 
• Never provide your SIN unless you’re certain of who you are dealing with.
• If you are unsure about any websites, phone calls or emails, call Service Canada directly at 1-800-622-6232 to ask for clarification.