Image: Jeff Djevdet Image: Jeff Djevdet/

Wonga, the UK's biggest payday lender, saw its losses more than double in 2015 as it feels the full effect of tighter regulation on the industry.

Following a loss of £38.1 million in 2014, Wonga posted a loss of £80.2m for 2015.

The payday lender has been the focal point of new regulation from the Financial Conduct Authority (FCA) designed to better protect consumers from extortionate interest rates and bad practices.

Wonga was forced to extended repayment terms for some loans, cap its daily interest rate at 0.8% and introduce stricter checks on whether or not customers could afford the loans they were applying for.

Despite the doubled losses in 2015, Wonga described 2016 as a "turning point" for its finances. It expects to report another loss this year, but expects to report a profit in 2017.

Wonga said it was doing its bit in "ensuring all lending is responsible and affordable". It said the affordability checks and interest rate cap imposed by the FCA had increased its costs, which contributed to the larger loss.

Wonga chairman, Andy Haste, said: "We continued to focus on changing our culture to ensure customers are at the heart of our business, while strengthening our financial position."