Payday lender Wonga has collapsed into administration, it was announced today.
In a statement, Wonga said that the board after assessing all options concluded that it was appropriate to take the companies into administration.
It added: Wonga customers can continue to use Wonga services to manage their existing loans, but UK companies do not accept new credit requests. Customers can find more information on the website. & # 39;
Grant Thornton is currently appointed as manager.
On Wednesday, Wonga held talks with the Financial Conduct Authority about the impact of the collapse on existing borrowers, which is assumed to total about 220,000.
Payday lender Wonga has collapsed into administration, it was announced today
On the weekend, Wonga had said that it was considering all options & # 39 ;. Customers were told by the company that despite the collapse they are still obliged to repay outstanding money.
Just a few weeks ago, shareholders – including Balderton Capital, Accel Partners and 83North – have pumped £ 10 million into the company to prevent the company from going bankrupt.
Wonga, which whistled on a stock market only five years ago, has been hit by stricter regulations on lending and a peak in claims for damages.
The company accused claims management companies of the turnout, but said it was making progress against a transformation plan drawn up for the company.
Thousands of people who are currently seeking compensation from the company can not leave anything behind and are expected to line up with creditors seeking the money they owe.
Wonga's most recent accounts show that £ 108.6 million was due by the end of 2016 – double the year before.
Wonga, which whistled only five years ago on a stock market, has been hit by stricter regulations on lending and a peak in claims for damages
Wonga scaled the levels in the aftermath of the credit crisis when a flurry of struggling consumers closed short loans.
But the company has to deal with a barrage of criticism on the high interest rate it charges on its loans and it is accused of targeting those who are vulnerable.
In 2014, the company introduced a new management team and eliminated £ 220 million in debt of 330,000 customers after they had admitted to having provided loans to people who could not afford to pay them back.
In the same year, the FCA said it would increase the affordability of the checks to the industry and introduce a ceiling for the cost of flash credits on the loan amount per day.