WALES' largest community bank has given its reaction to news last week that Wonga had collapsed into administration.

Staff at Cambrian Credit Union, which dates back to 1992 when Llandudno Credit Union was founded and has 12,000 adult members and 1,500 junior savers, have given their view on the demise of the payday lenders.

Wonga has faced a barrage of criticism over the high interest it charges on its loans and it has been accused of targeting those who are vulnerable.

Ann Francis, General Manager of Cambrian Savings and Loans said: “The collapse of any company and the potential loss of 500 jobs is never a cause for celebration.

"However, Wonga has reaped what it has sown. It based its business model on high interest rates, penalty charges and some unfair debt collection practices. When the regulators clamped down the model was no longer as profitable.

"Credit Unions like Cambrian exist to provide an alternative to high cost lenders like Wonga. We believe that it is possible to lend responsibly at reasonable rates and in a way that does not exploit the financially vulnerable.”

Cambrian Credit Union employs over 30 members of staff and has around 50 volunteers, operating from five offices and covering Anglesey, Conwy, Denbighshire, Flint, Gwynedd, Powys and Wrexham.

Wonga will be wound down following its collapse into administration.

The controversial company called in administrators Grant Thornton on Thursday after being hit by a surge in people making compensation claims over historical loans.

Grant Thornton said on Friday that it was conducting an "orderly wind down of the business".

It added: "There will be no new lending activity.

"The administrators will conduct an orderly wind down of the business and sale of the assets and start the process of identifying all creditors, in accordance with their statutory obligations."

Wonga's collapse came just weeks after shareholders pumped £10 million in, in a bid to save it from going bust.

Last month, Wonga said its struggles were due to a "significant" increase industry-wide in people making claims in relation to historical loans.

The lender blamed claims management companies for the rise.