"We have acted to ensure that Wonga does not behave this way again, " said David Fisher of the OFT.
Wonga finished its algorithm, and it is indeed ruthless, rejecting 70% of applicants.
Money lender Wonga has announced a sharp jump in profits, thanks to strong demand for credit during the downturn.
Wonga is set to expand to two other territories this year, not including the U.S. (because the regulatory environment is too shaky).
High-profile money lending firm Wonga has been criticised by the Office of Fair Trading for using aggressive and misleading debt collection methods.
Wonga said it would appeal against the OFT as the incidents had been isolated and had taken place a long time ago.
Wonga, the UK online lender, makes credit judgments within seconds based on thousands of pieces of information, including an applicant's Facebook profile.
Ironically it is perhaps America that will come to the rescue of Europe, says Errol Damelin, CEO of payday loans provider Wonga.
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"It is not about the desperation of customers - we reject about 60% of applicants, " Wonga boss Errol Damelin told the Reuters news agency.
There is Wonga, which is similar to ZestCash, and Billfloat, which limits the use of funds one can borrow to bill repayment.
Wonga staff had tried to collect some debts by suggesting the defaulting customers had committed fraud and might be reported to the police, it said.
Well the Treasury, Lloyds and RBS all tell me that Lloyds and RBS can find what they need without tapping impecunious taxpayers for yet more wonga.
In just a few years Wonga has a become a massive online lender in the UK by instantly underwriting and dynamically pricing short term loans.
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Even so, six months after Wonga (Brit-slang for money) was launched in July 2008, it was already profitable and is now the biggest short-term lender in Britain.
However, Wonga said the OFT's public censure had been unnecessary.
Wonga says it has created a computer programme, called an "automatic risk decision engine", which collates data from lots of sources about applicants before deciding on whether to sanction a loan.
And the Public Accounts Committee (at 3.15pm) returns to its hearing on the effectiveness of consumer credit regulation - having berated Wonga and other lenders last week, the regulators, the Office of Fair Trading, and the Financial Services Authority will be in the committee's sights this time.
"The OFT has adduced no evidence that the communications have ever been sent again, or the collections script has ever been used, while Wonga has demonstrated its enhanced procedures ensure that there is no risk of such communications being sent again, or the script being used, " Wonga said.
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