The FCA has referred its case against payday lender Wonga to the police, according to reports.
Wonga will pay around 45,000 customers £2.6m in compensation after an FCA investigation uncovered “unfair and misleading” debt collection practices, including sending letters from non-existent law firms.
In certain cases, Wonga had added charges to customer accounts to cover administration costs for sending the erroneous letters.
According to an ITV report, the regulator has now asked the police to assess whether criminal proceedings should continue because it is illegal to impersonate a solicitor.
The FCA, which assumed authority over consumer credit on 1 April, refused to confirm or deny that it had referred the case to the police.