Morses warns home credit campaign could force millions to use illegal lenders

Morses Club has responded to recent reporting on the Home Collected Credit sector calls for the tighter regulation.

In a statement Morses said that it offers transparent fixed interest rate products and does not charge its customers any fees or penalties for late payments, ensuring they never pay more than their original agreement, regardless of circumstances. Morses’ customers value the face-to-face highly personalised service it provides and consistently awards Morses Club with 95% or more customer satisfaction scores.

Paul Smith, Chief Executive Officer of Morses Club, said “As a responsible, fully FCA regulated lender, we welcome calls for greater transparency and regulation across the entire sector, but we also call on parties on all sides of the debate to recognise the reality facing individuals who rely on the Home Collected Credit.”

“The likely unintended consequence of restricting access to Home Collected Credit lending will be that many individuals will be forced to turn to unregulated lenders charging punitive repayment terms, which will remove any ability to regulate or control consumer debt. Indeed, according to the England Illegal Money Lending Team (IMLT), it is estimated that 310,000 people are using illegal money lenders, which equates to a staggering 3 individuals for every 10 customers of regulated HCC firms. We take our responsibilities very seriously and are proud of the role Morses Club plays in supporting local communities across the UK. We look forward to engaging with parties across the sector to strive for transparency and fair outcomes for all customers.”

The Company has a 130-year history in Home Collected Credit and currently has 229,000 customers.