The rocker was a member of The Jeff Beck Group and the Faces before going solo, and warns the boyband - Harry Styles, Louis Tomlinson, Zayn Malik, Liam Payne and Niall Horan - to be wary of who is handling the business side of their group.
He told the Daily Star newspaper: ''Good luck to them, what I think they need is some sort of protection.
''I know when I was with The Faces, and there's a comparison there because we were young and drunk all the time too, you need somebody to take care of business.
''Nobody did with us, we were like: 'You take care of it... No, you take care of it' and in the end we were screwed out of a few shillings as a result.''
The 'Maggie May' hitmaker also said he is ready to tour with the Faces and only bandmate Ronnie Wood's commitment to The Rolling Stones has prevented them going on the road together.
Rod said: ''It's always been top of the list. The only reason why the Faces hasn't happened is Woody's in another band, he can't commit [but] it now looks like he's going to have a year free.''
Faces formed when former Small Faces members Ian McLagan, Ronnie Lane - who died in 1997 - and Kenney Jones teamed up with The Jeff Beck Group's Rod and Ronnie in 1969, before originally splitting in 1975.
Plans for a reunion were announced in 2008, but the following year Rod's spokesperson said he had no plans to take part, so the group drafted in former Simply Red singer Mick Hucknall as a replacement vocalist.
Rod added: ''I thought Mick Hucknall did a great job of replacing me.''