Payday loan customers of The Money Shop could end up with as little as £5 each in compensation.
Britain’s biggest payday firm, which once had 600 stores, was hit by £87million losses last year.
Its US owner Dollar Financial has set aside £18million to reimburse customers for mis-selling.
But £8million of that will go to accountants and lawyers – leaving customers with as little as £5 each.
Sara Williams, founder of the Debt Camel advice website, said: “Nearly half of the £18million will be eaten up by bills from accountants and lawyers.
“Once again customers are left with very little while the experts get paid handsomely.”
Money Shop is the latest in a string of payday firms to get into difficulties since a clampdown on rip-off lending rates by regulators in 2015.
It stopped issuing payday loans through its website and shops last year.
Since then it has seen a sharp rise in complaints about people given loans they could not afford to repay.
Its website admits: “It is unlikely that all claimants will receive full redress.”
Money Shop and other brands such as Payday UK are run by Instant Cash Loans.
Its spokesman Sheraz Afzal said: “Our goal is to close down ICL in the best way possible while acknowledging that there is no good way to do this.”
