Is this the end of payday lenders? Experts predict downfall after Wonga plunges £35million into the red over past year after writing off thousands of loans

‘Payday loan companies which charge interest rates of thousands of per cent a year could be about to go out of business, according to industry experts.

The announcement came after it was revealed Wonga, the largest payday lender, saw its finances drop £35million into the red after being forced to write off hundreds of thousands of loans.

Tougher regulations, and a cap on the amount of interest the firms can charge per day, means that Wonga’s disastrous result is likely to be mirrored across the industry later this year.’

Read more: Is this the end of payday lenders? Experts predict downfall after Wonga plunges £35million into the red over past year after writing off thousands of loans