Wonga never considered itself to be a payday lender, preferring instead to describe itself as a maverick technology company that happened to sell loans. The payday lender giant has waved the white flag hours after it announced it was no longer taking applications for new loans. “The Boards of these entities have assessed all options regarding the future of the Group and have concluded that it is appropriate to place the businesses into administration,” it said. In a statement, it said: ‘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. A source told The Times that the FCA wanted more information on how an administration would impact customers on its short-term, high-interest loans. Britain’s payday lending industry has been heavily criticised by campaigners who say its high interest rates and marketing tactics have been unfair for vulnerable borrowers.
Wonga, the largest payday lender in the United Kingdom, collapses into administration.