Wonga enters administration after complaint surge

Since then, the lender is reported to have seen a surge in compensation demands relating to loans taken out before 2014.

In 2014, when the FCA took over regulation of consumer credit, Wonga was ordered to write off 300,000 loans after 'not taking adequate steps to assess customers’ ability to meet repayments in a sustainable manner'.

The FCA later capped the interest on payday loans to 0.8% and the following year the firm posted a £37.3m loss, with revenues dropping by almost £100m to £217.2m.

In a statement, Wonga said: "A decision has been taken to place Wonga Group Limited, WDFC UK Limited, Wonga Worldwide Limited and WDFC Services Limited into administration.

“Wonga customers can continue to use Wonga services to manage their existing loans but the UK business will not be accepting any new loan applications. Customers can find further information on the website.”