Wonga admits double-charging customers

The UK's biggest payday lender - Wonga - has admitted that it double-charged 7,000 customers for their loans on Friday.

It says an internal system error resulted in extra payments being taken from bank accounts.

The customers affected have what are known as Flexi loans, which have to be paid off in three instalments over three months.

Wonga has promised that extra costs and charges incurred will be refunded.

One customer told BBC News that the mistake resulted in an additional £574 being taken from his bank account.

His mortgage payment was bounced and over the weekend he was unable to buy a season ticket, or groceries, or fill up his car.

He was on hold to Wonga for six hours at the weekend and again for three hours this morning.

The short-term lender said that the rogue payments were refunded later on Friday, but may not yet have reached some customers' bank accounts.

"We experienced an internal system error on Friday morning which resulted in Flexi Loan payments being debited twice from some customers," the firm said.

"We notified all those affected and took action to credit the right amounts back to customers on Friday. We apologise for the inconvenience caused."