Image: Jeff Djevdet Image: Jeff Djevdet

More than 10,000 people are having their finances "damaged from beyond the grave" by defunct payday lender Wonga, MPs have said.

Customers are awaiting a ruling from the Ombudsman on whether or not they were mis-sold loans from the lender that fell into administration in August.

The Treasury Committee said those customers have been "cast aside", while many of them have given up hope of getting a positive outcome.

Many of the 10,500 customers lodged complaints of miss-selling because of their vulnerability or inability to repay the loans.

The Financial Services Ombudsman was investigating the cases but stalled when Wonga collapsed, because the likelihood of securing compensation was so low.

Nicky Morgan, chair of the Treasury Committee, said: "It cannot be right that over 10,000 people who may have been mis-sold loans are just cast aside, especially as many will be vulnerable consumers.

"These people have been left to fend for themselves by Wonga, the Financial Conduct Authority (FCA) and the Financial Ombudsman Service. They have been allowed to fall through the cracks with nobody taking responsibility for their mistreatment.

"If Wonga continues to damage people's finances from beyond the grave, it may be time for the government to intervene."