August 30, 2018 / 4:21 PM / 3 months ago

Britain's biggest payday lender Wonga collapses in the UK

The website of Wonga.com is seen on a smartphone screen in London, Britain in this picture illustration taken August 28, 2018. REUTERS/Peter Nicholls/illustration

(Reuters) - Britain’s biggest payday lender Wonga Group collapsed on Thursday, putting its operations in the country into administration.

Privately owned Wonga, which initially enjoyed rapid growth via its short-term, high interest lending often to troubled borrowers, fell into difficulty in recent years after scrutiny of its practices led to a cap on interest on payday loans.

“A decision has been taken to place Wonga Group Limited, WDFC UK Limited, Wonga Worldwide Limited and WDFC Services Limited into administration,” Wonga said in an email.

“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.  

Wonga said its overseas businesses were not part of the announcement. Administration is a form of creditor protection.

Reporting by Noor Zainab Hussain in Bengaluru; editing by Kate Holton

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