File photo dated 16/12/12 of the website of payday loan company Wonga
Media playback is unsupported on your device
Video

Payday lender Wonga writes off £220m of customer debts

The payday lender, Wonga, is writing off the debts of a third of a million customers after admitting that it made loans to people who could not afford to repay them.

The move follows an investigation by the Financial Conduct Authority, which took over the regulation of the payday loan industry in April.

Kamal Ahmed reports.

Go to next video: 'Not a proud day for Wonga'