Wonga has collapsed into administration hours after announcing it would no longer be taking applications for new loans.

The company had been struggling due to a "significant" increase industry-wide in people making claims in relation to historic loans and as a result, earlier in the week lined up Grant Thornton to act as administrator in case the lender's board decides it cannot be rescued.

It appears as though the board has ruled against pumping further money into the company in a bid to save it, weeks after shareholders pumped in £10m in a bid to save it from going bust.

A statement appeared on Wonga's website informing hopeful borrowers the company would no longer be taking applications for new loans, however it said existing customers can "continue to use our services to manage your loan."

On Wednesday, Wonga held emergency talks with the Financial Conduct Authority over the impact of its collapse on existing customers.

More to follow...