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FCA holds crisis talks with ailing payday lender Wonga

The FCA is holding meetings with prominent payday lender Wonga, as the troubled company could delay its fall into administration, according to reports.

The watchdog has stepped in to hold crisis talks with senior Wonga staff over the expected appointment of administrators, The Times reports.

Wonga raised £10m from shareholders a month ago but still appears to be in financial difficulty amid concerns over its ability to meet potential compensation claims.

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.

The FCA has taken a stronger line on high-cost credit in recent years, including by capping fees. Wonga faced its own difficulties in 2014 when it received a fine for unfair debt collection practices.

FCA targets overdrafts and high-cost credit to help vulnerable consumers

Wonga was previously Britain’s largest online payday lender, but has been criticsed over annual interest rate charges of around 4,000 per cent.

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