Former Atomic Kitten star Kerry Katona has been dropped as the face of a payday lending company after filing for bankruptcy a second time in five years.

Ms Katona recently filed for bankruptcy under the name Kerry Jane Elizabeth Katona at Wigan County Court, the Insolvency Service confirmed. The former Celebrity Big Brother star was first declared bankrupt in August 2008 after failing to pay the last instalment of a tax bill.

The decision to make Ms Katona the face of Cash Lady was met with controversy when announced in January 2013 because of her well publicised financial difficulties.

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The Cash Lady payday lenders offer small sums of cash up to £300, but depending on the amount borrowed and time needed to repay the sum, interest can rise dramatically.

In the advert for Cash Lady, Ms Katona could be seen saying: “We all have money troubles at some point – I know I have. You could see your bank and fill in loads of forms. But is there an easier way to get a loan? Check out CashLady.co.uk. With Cash Lady it’s simple to apply for up to £300.

“It’s dead fast, too. If you’re approved the money goes straight into your account.”

In a statement PDBUK, who trade under the name Cash Lady said they were sorry to hear about Ms Katona’s current financial situation. “Clearly, as a business, we are committed to responsible lending, so it is with sadness that we will not be able to continue using Kerry as the face of Cash Lady,” their statement said. “We enjoyed working with Kerry a lot, and we wish her all the best in her future endeavours.