Those who have taken out loans from a number of big-name banks over the past decade could be entitled to a hefty chunk of compensation.
Finance expert and journalist Martin Lewis' website Money Saving Expert has revealed that borrowers can claim back £100 if they feel they have received substandard service.
HSBC, First Direct, M&S Banks and John Lewis Finance are all on this list, and those who have banked with them in the last 10 years may be able to claim back some money.
Despite some initial confusion about how the compensation worked, after some people were left baffled getting letters out of the blue, it's been confirmed that the offer is genuine.
The HSBC group, which includes all four brands mentioned above, has said an internal review showed there were instances of customers in arrears not receiving a good service.
According to Martin's website "examples of bad practice included poorly worded letters that didn't engage customers who might have been struggling."
Because of this, those affected will be sent cheques by post of between £25 and £100, depending on how poor the service they received was.
The cheques started going out back in October 2020 and are set to continue being sent until the end of March.
"HSBC wouldn't tell us how many customers are in line for a payout but did confirm it impacts all types of borrowing, from mortgages to personal loans to current accounts with overdrafts and credit cards.
"And as the banking group has 14 million active UK customers, even if just 1 per cent were affected that could amount to 140,000 people - plus, there's also those who have already closed their accounts on top." Martin Lewis' website said.
What do I need to do?
According to HSBC, you will be contacted directly if you are due compensation and shouldn't need to do anything even if you've since closed your account.
Money Saving Expert has assured those who receive letters not to worry even if it sounds too good to be true.
The website stated: "This is likely to mean a letter, including a cheque, turns up out of the blue, which has surprised some customers who feared it to be a scam.
"If you receive a letter and you're unsure about its validity, you can contact your lender directly on any of its usual channels to verify its authenticity."