Just days after it was reported that Wonga has lined up Grant Thornton to act as administrators, it has now been confirmed that the payday lender is no longer accepting new loan applications.
The company said in a statement on its website: ‘While it continues to assess its options, Wonga has decided to stop taking loan applications. If you are an existing customer, you can continue to use our services to manage your loan.’
Just four years ago, the Financial Conduct Authority had ruled that Wonga’s debt collection practices were unfair and ordered it to pay £2.6m to around 45,000 customers. This crackdown had been a massive blow to Wonga’s business model and pushed the lender into the red.