Morses announces collections increase

Alternative lending specialist, Morses Club says that collections in its Home Collected Credit (HCC) division for July increased to 98% of normal historic expectations when measured against expected terms, an increase from 91% at the end of June and anticipates to reach pre-Covid levels by the end of August 2020.

In the company’s latest trading update it said that restructuring of the Group’s property portfolio is progressing, with the company adding it is encouraged that agent vacancy rates are now at the lowest level in the firm’s history.

Cash in July has improved slightly to 82.3% of the level achieved in 2019.  Whilst sales were 80.9% of the levels for the same period in 2019.

Response to the launch of remote lending to new customers has been positive with demand building strongly.

Shelby Finance, the group’s digital division, has continued with growing levels of lending and an encouraging uplift in demand for longer-term lending products evident. Collections have strengthened at above 80% to terms, which is an improvement on the level prior to Covid-19, with the level of demand for the e-banking current account product remaining stable.

Paul Smith, CEO of Morses Club commented said “We are encouraged by both the improvements in lending and the quality of the lending performance that we have delivered during July. We continue to make progress despite the impact of Covid-19, reflecting the success of our prudent approach to managing the business whilst strengthening and diversifying our product offering and putting our customers at the heart of the business.”