Thousands of people who got moneylender loans topped up may be entitled to get it written off and receive compensation.
It is illegal to be given a new moneylender loan before an existing one is paid off.
A ruling by the financial services ombudsman has set a precedent for compensation, experts said. This only applies to moneylending borrowings.
Anyone affected should first challenge the moneylender about their loan. If they are unsuccessful, they can take a case to the ombudsman, a free service.
To take an ombudsman case you need a letter from the moneylender refusing to offer you redress.
However, many people will face a dilemma if they make a claim to their moneylender.
A loan from the moneylender may be their only source of credit, even if interest rates are as high as 188pc.
Moneylenders may refuse to deal with people who are seeking a loan write off and refunds from them, prompting some soul searching for affected consumers.
The best bet is make a claim, and open a credit union account.