“These findings drive a coach and horses through the claim that Wonga has been lending responsibly.

“By not doing proper credit checks Wonga has rolled over loans and built up costs for many people who could never afford to repay in the first place.                                                                                                                  

“The effect on consumers has been to build up debts at astronomical rates of interest.

“We cannot have the usual routine response to these findings which is that the company involved claims it is all in the past, that everything has changed and urges everyone to move on. That is not good enough.

“I believe Wonga should be called back before the House of Commons Treasury Committee to be questioned on their business model and their lending practices.

“And I think this raises serious questions for regulators about who is allowed to operate in this market and on what basis.

“Debt is a huge problem for lower income families. That debt problem is made worse by being urged into taking loans people cannot afford at extortionate rates of interest.”