<p>
	Thousands of people who got moneylender loans topped up may be entitled to get it written off and receive compensation.</p>
<p>
	It is illegal to be given a new moneylender loan before an existing one is paid off.</p>
<p>
	A ruling by the financial services ombudsman has set a precedent for compensation, experts said. This only applies to moneylending borrowings.</p>
<p>
	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.</p>
<p>
	To take an ombudsman case you need a letter from the moneylender refusing to offer you redress.</p>
<p>
	However, many people will face a dilemma if they make a claim to their moneylender.</p>
<p>
	A loan from the moneylender may be their only source of credit, even if interest rates are as high as 188pc.</p>
<p>
	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.</p>
<p>
	The best bet is make a claim, and open a credit union account.</p>
<p>
	<a href="http://www.independent.ie/business/personal-finance/latest-news/how-consumers-can-get-an-illegal-loan-written-off-31308598.html">http://www.independent.ie/business/personal-finance/latest-news/how-consumers-can-get-an-illegal-loan-written-off-31308598.html</a></p>
