THE Conservatives are under fire after ministers were caught up in a 'cash-for-meetings' row involving payday lender - and new Newcastle United sponsor - Wonga.

Darlington MP Jenny Chapman, a long-time campaigner against the misery caused by companies offering loans at sky-high interest rates, condemned the meetings - costing a rumoured £1,250 each - as "wrong".

And, the Labour MP added: "The Tory party should pay this money back.

People will think this is why the government refuses to do anything about payday loans."

But the Conservative party defended the meetings as part of the normal process which saw "all political parties regularly meet with business people".

A spokeswoman said: "It is essential for good regulation that ministers and others meet with and listen to the views of the businesses they regulate, as well as those who campaign for tougher measures."

The row blew up after the Daily Telegraph revealed that Wonga paid for face-to-face meetings with a string of ministers - including business minster Michael Fallon, the ex-Darlington MP - at the recent Tory conference, in Birmingham.

Several businesses were charged £1,250 for get-togethers, at which they were invited to help "develop" business-friendly policies, the paper reported.

Each spent 20 minutes at a table for sessions that were nicknamed "speed dating", because the executives were given a brief time to put their views across.

Wonga confirmed it had sent a representative to meetings with ministers from the department for business (BIS) and the Treasury.

The meetings come hard-on-the-heels of criticism of Newcastle United for striking a £32m deal for Wonga's name to appear across the Magpies' famous black and white shirts.

The Premier League insisted the sponsorship would boost the team, youth academy and its community work - but there was a backlash from MPs, councillors and sections of Newcastle supporters.

The company has been accused of indulging in "legal loan sharking" - offering short-term loans of up to £1,000, at a typical APR of 4,214 per cent - but has insisted it is a "highly regulated and responsible lender".

Ms Chapman, and other Labour MPs, have long accused ministers of dragging their heels on promised action to curb an explosion in the number of high-interest lenders.

She said: "The government has repeatedly refused to act on our calls to cap the cost of credit and put a stop to these extraordinary rates of interest.

"When I campaign in Darlington, the question people constantly ask is why something isn't done about companies such as Wonga."

The Conservative spokeswoman did not deny that Wonga made payments in return for meetings, but added: "These are private events and, therefore, we have no further comment."