Martin Lewis: Expert issues urgent warning over payday loan reclaims - you must act fast

Martin Lewis will often appear on screens to share his best money-saving tips. Today, he spoke on Good Morning Britain to give an urgent warning to those who have taken out a payday loan. Earlier this week, he gave advice to those affected by the collapse of the tour operator, Thomas Cook.  He warned holidaymakers to watch out for a trick which could leave them paying for their hotel twice.

Today, Martin gave viewers an urgent warning about payday loans and explained what to do if you have been mis-sold.

The expert told viewers how to check if this affects them and how to claim it back if so.

He said: “Payday loan reclaiming is a very big thing. What they should have done when you got a loan is examined your finances to see if you could pay and the loan was affordable.

“In many cases, it wasn’t. They also should have told you your cash and repayment timetable when you got the loan out, if they didn’t you were mis-sold and you can get your money back and there are free tools online to do that.

“Specifically for customers of payday giant Wonga, which collapsed last year, there’s a special compensation route - but it has a deadline of 30 September.

"You need to apply for Wonga compensation via a website set up by administrators Grant Thornton – all you need to do is put in your details, and Grant Thornton will assess whether you’re owed money, so you don’t need to explain why you were mis-sold.

"If you’re unsuccessful you can escalate your complaint with Grant Thornton but can’t go to the ombudsman, as bust payday lenders aren’t in its remit.

"Sadly though it’s possible you’ll only get a few pennies in the pound of any money you were owed, depending on how much the administrators have recouped."

He explained the deadline for those reclaiming money from a Wonga loan is 30 September, so Britons must act fast.

The expert recently hosted The Martin Lewis Money Show where he gave tips about the best way for Britons to save money.

On the show, he gave an “important warning” for those with a savings account and advised what they should do during this time of uncertainty. 

The expert told Britons could benefit from switching their savings account if they are not getting enough interest. 

Recently, he revealed the best fixed-term savings accounts to go for in the country.

While speaking on BBC Live 5, Martin answered the question of a listener and advised them which savings account could be best if hoping to put aside a large sum of money.

He also opened up about whether a Help to Buy Isa or a Lifetime ISA was better for savers.

Martin answered a question from a caller who explained their son is a student and received an inheritance of £10,000.

The expert told the caller: “If wanting to put away for three years he would go for one of the top three year fixed saving accounts on the market. If that’s a bit too long for fixed-term, maybe go for two.

“If he doesn’t want to touch the money at all in that time, you’re looking at something like the top payer at the moment, Access Bank, who is paying 2.1 per cent on a two year fixed account.”