Loan shark Wonga wriggled free from potential fraud charges yesterday by striking a deal to compensate thousands of customers threatened with fake legal letters. 

Wonga faces £2.6 million in compensation claims after the Financial Conduct Authority (FCA) found it used “unfair and misleading” tactics to chase 45,000 people for debt.

The regulator revealed extra administration charges were piled onto customer’s huge bills for letters from non-existent solicitors threatening legal action.