Payday lender Wonga has announced that it is going into administration along with its parent company.
In a statement, the company said that having assessed all options, the board ‘concluded that it is appropriate to place the businesses into administration’.
It comes hours after Wonga said it would stop accepting new loan applications.
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.
‘Customers can find further information on the website.’
Grant Thornton is in the process of being appointed administrator.
On Wednesday, Wonga held emergency talks with the Financial Conduct Authority over the impact of its collapse on existing customers.
Investors in Wonga include Balderton Capital, Accel Partners and 83North.
Over the weekend, Wonga said it was ‘considering all options’, just weeks after shareholders pumped in £10 million in a bid to save it from going bust.
Earlier this month, the lender said its struggles were due to a ‘significant’ increase industry-wide in people making claims in relation to historic loans.
Wonga has faced a barrage of criticism over the high interest it charges on its loans and it has been accused of targeting those who are vulnerable.
In 2014, the firm introduced a new management team and wrote off £220 million of debt belonging to 330,000 customers after admitting making loans to people who could not afford to repay them.
In the same year, the FCA said it would bring in stricter affordability checks to the industry and introduce a cap on the cost of payday loans on the amount borrowed per day.
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