Payday loan firm Wonga made a pre-tax loss of £37.3 million in 2014, the BBC has reported.
In 2013 the firm announced a 53% drop in profits to £39.7 million – and that followed a scandal in which it was found to have sent 45,000 legal letters from fake law firms between 2008 and 2010 and an £18.8 million loss for "remediation relating to historic debt collection and system issues".
In October last year it also announced it would be writing off debts from 300,000 customers to improve its relationship with borrowers and regulators, which it said would cost £35 million. In February this year, it cut 325 jobs – more than a third of its workforce.
Wonga said that revenues "fell by 31%" driven by a "cut in lending to UK consumers", the BBC reported. It told the broadcaster it needed to address "the problems of the past" and is predicting "another tough year in 2015".
The company may in future be affected by a cap on payday loan charges, introduced at the start of this year by the Financial Conduct Authority.