The characters threatened authorized motion, nonetheless law offices had been false. In some circumstances Wonga put in charge for these emails to customers records.
The area watchdog, the economic run power (FCA), believed 45,000 associates is paid.
Wonga have apologised and claimed the procedure finished virtually four years ago.
The town regulator provides explained the BBC it has transferred a file for the police.
The business would be the British s biggest payday loan company, generating practically four million finance to one million associates in 2012, newest results showcase.
A study unearthed that Wonga sent emails to customers from fake lawyers labeled as Chainey, D Amato Shannon and Barker and Lowe appropriate Recoveries .
Each plan was to produce people in debt assume that their unique outstanding debt were died to a law firm, with legitimate activity compromised when debts had not been settled.
The organization got because of this strategy to increase choices by piling pressure on associates, the regulator said.
Wonga s misconduct got extremely serious mainly because it met with the effect of exacerbating a currently harder situation buyers in arrears, mentioned Clive Adamson, movie director of supervision on FCA.
The FCA is expecting providers to pay particular attention to fair treating all those who have complications in encounter his or her funding settlements.
The case taken place between Oct 2008 and December 2010, and required Wonga alongside agencies within the class.
Since this gone wrong vendor FCA took over the legislation of payday loan providers, it is actually struggling to okay Wonga. Additionally explained there would be no unlawful investigation the way it would like to created a compensation scheme as fast as possible and a criminal probe would take time. Affected consumers will receive about ?50 each.
Rather, Wonga begins talking to subscribers in July to consider compensation, with funds apt to be compensated towards the end of period. This can be paid-in money or subscribers will need their particular outstanding obligations diminished.
We want to apologise unreservedly to individuals afflicted with the traditional business collection agencies movements along with any worry brought about subsequently, said Tim Weller, interim chief executive of New Hampshire title loan Wonga.
The rehearse was actually unwanted so we voluntarily ceased it around four yrs ago.
Anyone that may have transformed tackle during the intervening time period should communicate with Wonga.
Labour MP and campaigner against payday loans Stella Creasy enjoys interrogate the possible lack of illegal research.
Exactly why during those times wherein subscribers of Wonga billed debt collection fees for these emails is that not cops point?, she expected on social websites webpages Twitter.
Richard Lloyd, manager movie director of customer team Which?, explained: really ideal the FCA has taken a harder line on reckless financing it certainly does maybe not bring more irresponsible than this.
Its an alarming newer lower for any payday markets that is definitely already dogged by bad practise and Wonga deserves to have the reserve placed at it.
The researching ended up being established by your FCA s forerunner, the Office of fair-trading (OFT). Wonga stated they ceased the strategy voluntarily next granted records with the OFT.
Moreover, in April this season, Wonga unearthed that they experienced miscalculated some people scales.
This lead to 200,000 people overpaying the corporate. Wonga announced just about all overpaid by lower than ?5, and a larger amounts underpaid.
People that overpaid are contacted by Wonga, in addition to the underpaid financial obligation could be cancelled.
Mr Weller said the firm will discover from these failure and got enhancing its internal handles.
The issues for Wonga arrive shortly after their chief Niall Wass give up after 6 months inside the tasks of chief executive. Mr Wass signed up with Wonga in January 2013 as main running officer – following artificial attorney techniques ended – and become chief executive in December.
Early in the day this thirty day period, chairman and president Errol Damelin in addition announced that he had been going to quit.