Money Saving Expert founder Martin Lewis has advised loanees that they could reclaim back thousands of pounds on a certain loan.
The savings expert dished out the advice on his ITV show The Martin Lewis Money Show when one guest told him about his ‘catastrophic’ debt.
The 29-year-old told Martin how he had taken out a payday loan in 2014, and was struggling to pay it back.
Martin then claimed that the guest may have been mis-sold the loan, and told him to act fast to claim some money back.
He said: “When you get a payday loan, they have to make sure that you have the ability to repay it, you know it’s a short-term loan and you know the conditions.
“Clearly, with what you’ve said, you shouldn’t have been given a payday loan.”
He then told the guest to go look at ‘payday loan reclaiming’, saying: “You don’t pay anyone to do this for you. There are free tools and guides that will do this for you.
“Go and have a look and put in a payday loan reclaim to the payday loans you’ve had.
“You might be able to get a chunk of money back. Ultimately, it might go to the creditors but that’s fine.”
Later in the show, Martin said: “There are so many people out there in horrendous debt, I always push to those non-profit agencies, because they can sit there and go through the details, talk to the creditors for you, and make sure it’s better.”
Martin also told viewers to act quick in applying for loan reclaims, saying: “It’s absolutely huge, people need to get on with it, it’s about getting the interest back but that can be enormous.
“Natalie got in touch and said ‘thank you, saw your info on payday loan reclaiming and one company is refunding me £4,172.01’.
“The issue with that though is so many people are reclaiming, payday loan companies are going bust. If they go bust, you’re unlikely to get anything back, so do it sooner.”