Payday lender Wonga has gone into administration after facing financial difficulties.
Wonga's fall into administration comes after the company struggled to adapt to tough measures introduced by the Financial Conduct Authority in 2015, including the capping of interest and fees on all high-cost short-term credit loans.
The company ceased offering new loans this week and has now appointed Grant Thornton as administrators despite a £10m cash injection which it received from its investors earlier this month.
One of the problems Wonga has reportedly faced has been a surge in complaints to the Financial Ombudsman Service, which cost the company £550 each in fees - about double the average size of the loans Wonga offers.
In a statement the FCA said: "The FCA will continue to supervise Wonga once it is in administration and is in close contact with the proposed administrators with regard to the fair treatment of customers.
"Customers should continue to make any outstanding payments in the normal way. All existing agreements remain in place and will not be affected by the proposed administration. However, the firm is no longer able to issue new loans."
Wonga’s overseas businesses in Poland, South Africa and Spain are continuing to trade and are not affected by the administration.