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A teenager with mental health problems killed himself on the same day his bank account was emptied by payday lender Wonga.

Kane Sparham-Price, 18, was left destitute after the company took the cash under a debt agreement. He had taken out a number of loans with the company.

He was later found dead at his home in Ashton-under-Lyme, Greater Manchester, reports Disability News Service .

John Pollard, the senior coroner for south Manchester, was so alarmed at Wonga’s action he wrote a report and sent it to the Financial Conduct Authority (FCA).

Coroners have a duty to send such reports to individuals or organisations, if they find that “there is a risk that future deaths will occur unless action is taken” during an inquest.

Mr Pollard said in his report: “Whilst I accept that the various pay-day lenders are legally entitled to ‘clear out’ someone’s bank account if money is owing to them [through a continuous payment authority], it struck me that there ought to be a statutory minimum amount which MUST be left in an account (SAY £10) to avoid absolute destitution; and as I understand you set and regulate the rules, you might look at this with a view to preventing further deaths.”

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The FCA’s responded last October and chief executive Martin Wheatley said that the safeguards suggested by the coroner would be “undesirable” because of issues with privacy and extra bank charges if a payment is refused.

There is no suggestion Wonga acted unlawfully or knew that it had left Mr Sparham-Price pennyless.

A Wonga spokesman said in a statement: “We were sorry to hear of the tragic death of Mr Sparham-Price.

“We take our responsibilities to our customers very seriously and we have strict lending criteria in place.

“We conducted a full review of this case at the time to confirm we acted according to regulatory guidelines and to continue to improve our engagement with customers.”

Payday loan companies have come under fire for charging high interest rates and fees to customers - many of whom are poor and desperately need the cash.

To help beat depression or suicidal thoughts go online to samaritans.org or call 08457 90 90 90.