Wonga, UK’s biggest payday lender and former sponsor of Newcastle United, reportedly on the verge of collapse

Wonga payday loan company is reportedly facing financial collapse.

The company said it “continues to assess all options” as its future remains uncertain.

Sky News reports suggest the company has identified Grant Thornton as a potential director.

Britain’s biggest payday lender was the sponsor of Newcastle United’s shirt between 2013 and 2017.

Earlier this month, it emerged that its shareholders had invested £ 10million to cover the costs.

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Wonga has suffered a huge downfall since being forced to start paying consumer compensation claims and write off £ 220million in customer debt.

This was after the Financial Conduct Authority (FCA) toughened the rules in the payday lending industry.

The company, which operates in the UK, Poland, South Africa and Spain, reported a loss of £ 64.9million for 2016.

As part of her cost-cutting plan, she moved to a new headquarters in London and terminated her sponsorship contract with the NUFC.

A spokesperson for Wonga said: “Wonga recently raised £ 10million from existing shareholders to deal with the significant increase in legacy loan complaints seen in the UK short-term credit industry.

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“Since then, the number of complaints related to UK loans taken before the arrival of the current management team in 2014 has accelerated further, driven by the activity of claims handling companies.

“In this context of demands, the board of directors of Wonga continues to assess all options concerning the future of the group and all its entities.”

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