Martin Lewis told This Morning viewers they could be owed thousands from payday loan companies.
But the Money Saving expert warned people mis-sold loans to be quick as many of the companies are going out of business.
Payday loans only started being regulated in 2014.
And by January 2015 the regulator, the Financial Conduct Authority, imposed a price cap of 100% of the amount borrowed, i.e so you should never repay more than double.
Martin said: "If you were mis-sold and a firm is solvent and still in business you get the full amount back. But if it goes bust you're just one of the creditors, and will be lucky to get a few pence per pound – as what’s happened with Wonga customers.
"Before lending to you there are certain things a payday lender must do, and if they don’t it counts as mis-selling.
"If you were mis-sold then you are due back all the interest, fees, charges and 8% per year statutory interest on top since you took it out."
Tesco Clubcard holders to get 50% off next month as the supermarket celebrates its 100th birthday
For example: -
- The lender must examine your finances to ensure you can afford the loan and fees. So for instance you shouldn’t have been given a £1,000 loan if you only earn £500/month.
- The lender didn’t make it clear to you how much it would cost you in total to repay the loan.
- You weren’t given full or accurate information about how and when to pay back your loan.
- The lender didn't tell you that a payday loan should not be used for long-term borrowing or if you are in financial difficulty.
- You weren't told by the lender what to do if you have a complaint.
Martin said one person who followed his advice managed to claim £1,600 back.
You can claim on existing loans and loans you’ve already paid off, usually as long as you raise the case within six years of taking out the loan.
Importantly, there’s no need to pay anyone to reclaim, you can do it yourself for free.
Martin has a free tool or you can just write to the lender yourself explaining why you think you were mis-sold .
And if the payday lender rejects you, don't think it's over. More than 60% of people who then take their case on to the free Financial Ombudsman Service win.
