Vulnerable Scots, particularly the elderly, are being targeted by aggressive online advice companies that promise guaranteed success when applying for social security benefits. Warnings have been issued to steer clear of the unregulated internet firms, which are skimming benefits cash from those in need.
The private companies claim they can help applicants navigate online forms for payments such as the Adult Disability Payment (ADP) and Pension Age Disability Payment (PADP). However, they often demand high fees or a percentage of the benefit payments in return for handling applications.
Family chased after death
In one example, the family of an elderly Scottish man was chased by a private advice firm after he died before his first benefit payment was awarded. Citizens Advice Scotland (CAS) has raised the growing issue with MSPs at the Scottish Parliament but warned the scale of the problem is hard to identify, as many victims are reluctant to admit they were duped.
The charity has stressed that all benefit applicants are entitled to free, impartial advice and should not have to resort to paying a third-party website to handle applications. Benefits advice is not regulated in the UK, meaning anyone can offer their services and ask people to pay for it.
Guaranteed success claims
Emma Jackson, assistant director of policy at CAS, said: "From the evidence we've seen, it appears that aggressive social media marketing is being used by companies to get their adverts in front of an audience who would be most likely to need the payments.
"We've seen some spurious claims around guaranteed success - and no advice organisation can guarantee somebody will get an entitlement. It's setting people up with a high level of expectation.
"From our experience, we've seen people charged a flat fee or a percentage of the payment they're eventually given. But every pound of every social security payment really matters to individuals right now - and the loss of that risks pushing people further into hardship or poverty."
Jackson told members of the Scottish Parliament's social justice committee that third party firms would chase payments even if the original applicant had died, leaving bereaved relatives "devastated". She added: "A family sought advice on behalf of their elderly father who had used a commercial advice company to get a payment. Unfortunately, he passed away before he was given the payment.
"And the commercial advice company were then looking to reclaim the fee from the estate, and the family was devastated. They had lost a relative and a company was trying to make a charge. But we don't know the extent, or scale, of this."
Free advice available
CAS offers in-person appointments at its advice centre where an adviser can talk through an application form. Its advisers can also check over completed forms, and some locations may offer home visits.
Jackson continued: "We need to make sure people are getting that free, confidential, impartial advice that allows them to get all of the payments they are entitled.
"One of the things we've been observing over the last 18 months is the rise of commercial advice providers. They are quite specifically targeting quite vulnerable individuals who may considering applying for things like ADP or PADP, and offering sensational claims like 'you'll definitely get a positive outcome if you come with this'.
"They are also offering significant charges. We've seen fees of around £400, right through to claiming a percentage of the award - which means people are losing thousands from their social security payments.
"The landscape for individuals needs to be as easy to navigate as possible so they can get that right advice."
Advice Direct Scotland said it was "concerned" that some commercial operations were promising applicants guaranteed success when it comes to applying for benefits. The charity said it was "vital" that "every pound awarded should remain in the pocket of the person it was intended to help".
Craig Tobin, head of business development at Advice Direct Scotland, said: "We are concerned about vulnerable people being targeted with claims that suggest success can be guaranteed.
"No adviser can promise an outcome. What people need is access to free, independent and impartial advice that helps them to understand their rights and make informed decisions with confidence.
"Benefit payments exist to support people, not to create profitable opportunities. Nobody should lose part of their award because they have to pay for help that is available free of charge through trusted advice services such as Advice Direct Scotland.
"We believe these services should be accessible to everyone, regardless of their financial circumstances, and that every pound awarded should remain in the pocket of the person it was intended to help.
"Anyone across Scotland seeking advice on benefits can contact our team at advice.scot for free, confidential support."
