The firm, which is the UK's biggest payday lender, sent correspondence to about 45,000 customers in arrears from non-existent law firms threatening legal action, the Financial Conduct Authority (FCA) said.
The FCA could not impose a fine on Wonga for what it described as "unfair and misleading" practices, which happened between October 2008 and November 2010, because the failings were uncovered by a previous regulatory regime and it does not have powers to issue retrospective penalties.
The case, which consumer campaigners described as a "shocking new low" for the payday industry, also saw Wonga add charges to some customers' accounts to cover administration fees for sending the letters.
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