Is it time up for Wonga?

The UK’s biggest payday lender Wonga is on the brink of collapse after a surge in compensation claims. The flood of claims relate to loans taken out before 2014, when a cap was introduced on the cost of borrowing from short-term loan companies. The company - which launched in 2007 - has been given an emergency £10 million cash injection from shareholders, but is reportedly calling in administrators to help salvage its finances.

But what does this mean for those who’ve taken out loans with Wonga? Do you have to pay them back? And can you still claim compensation?

Consumer editor Alice Beer is here with the latest and will help explain what worried customers can do.