Wonga Group Limited and WDFC UK Limited (Wonga) have placed themselves into administration.
The payday lender had been struggling to deal with a large number of compensation claims.
Reports say an estimated 200,000 customers are still owed over £400m in short-term loans.
Insolvency Practitioners from Grant Thornton are in the process of being appointed as administrators to manage the firms’ businesses and affairs.
Grant Thornton plan to update customers once the firm is in administration. If customers have any questions in the meantime about their loan they should contact Wonga on 020 7138 8330 (within opening hours) or visit the website.
The FCA will continue to supervise Wonga once it is in administration and said it is in close contact with the proposed administrators with regard to the fair treatment of customers.
The regulator said 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.