Loan Sharks Are Circling

Wonga's collapse is arguably a victory for increased regulation, but deeper changes are still needed to protect the vulnerable

The UK’s biggest payday lender Wonga has gone into administration, despite efforts to stay afloat and a £10 million cash injection from a group of their shareholders, including venture capital funds Balderton Capital and Accel Partners.

The collapse represents a huge fall from grace for the company, which in 2012 was widely publicised to be exploring a US stock market flotation that would have valued it at more than $1 billion (£770 million). However, since then they have faced increased criticism that their short-term, high-interest loans prey on the vulnerable.