Morses Club provides Home Credit, otherwise known as doorstop loans. This is where you borrow money and a representative (agent) of the lender calls at your house to collect the payments. Some customers build up good relationships with the agents and end up becoming overly reliant on these loans. One of our customers had 82 loans with Morses – and that kind of amount is, sadly, not that rare.
In the first half of 2021, the Financial Ombudsman Service upheld 71% of the complaints it received about Morses Club. This is much higher than average and suggests that there are poor lending practices going on, as well poor complaint handling by Morses.
It is common for Morses customers to take out multiple loans, time and time again. Repeatedly providing a customer with so many loans is not responsible lending, as it puts the customer further and further into debt. An Ombudsman outlined the following in one particular case:
“On almost every occasion Mr B agreed to pay far more interest than the amount he borrowed, and because of refinancing early loans, he then ended up paying interest (at similar very high rates) upon the unpaid interest, resulting in truly enormous costs over a much longer period. I think that Morses Club could and should have identified, from the way Mr B sought to use its loans, that his debts were problematic and taken steps other than continuing to provide more and more expensive loans.” (https://www.financial-ombudsman.org.uk/decision/DRN7625949.pdf)
Experience of Financial Ombudsman Service Decisions shows that there will be an uphold ‘tipping point’: a point where it was no longer sustainable for the customer to be given any more lending – and all subsequent loans after that point would automatically be upheld. This is illustrated by numerous cases, some of which are briefly summarised below.
In spite of this clear approach from the Financial Ombudsman Service, Morses sometimes refuses to offer fair redress to its customers – instead opting to pick and choose the loans it upholds, and the loans it doesn’t uphold. For example, in one case which Allegiant provided claims assistance for, Morses agreed to uphold loans 6 to 8, 14 to 16, and 22 to 27, but refused to uphold loans 1 to 5, 9 to 13 and 17 to 21. This is therefore out of step with the approach taken by the Financial Ombudsman Service, outlined in the examples above. You can be assured though that Allegiant will provide advice on any settlement offers received by Morses, and Allegiant are ready to support you in trying to get the fair outcome for your claim.Apply Now
We realise that claiming against a high cost loan lender can seem daunting. We aim to make the claiming process as simple as possible. We specialise in affordability claims. Our experienced team will communicate with the lender (and where required, the Ombudsman service) on your behalf. We use bespoke technology to ensure efficient claims handling. Throughout the process, we inform you of claim progress using a “stage process”, so you can track your progress easily. Please remember though, that you do not need to use a claims management company to make your complaint to your lender, and if your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.
Pre complaint investigation and analysis
Formal mis-selling complaint made
Lender responds with a Final Response Letter
If appropriate resolution cannot be reached with the lender, referral to Financial Ombudsman Service.
Our success fee is due only if your lender makes a compensation payout, and is calculated on the amount of the compensation payout. We do not charge you for any part of a settlement that results in the lender reducing your outstanding balance – that is on the house!
The success fee amount is calculated using a band charging system. There are five charging bands. Each band has a maximum amount that we will charge.
Success Fee Charging Table
|Band||Compensation Payout||Percentage rate the Success Fee is calculated on (including VAT)||Maximum Success Fee in band (including VAT)|
|1||£1 to £1,499||36%||£504|
|2||£1,500 to £9,999||33.60%||£3,000|
|3||£10,000 to £24,999||30%||£6,000|
|4||£25,000 to £49,999||24%||£,9000|
|5||£50,000 or more||18%||£12,000|
Below are examples of how this would work in practice.
|Lower example||Higher example|
|Band||Compensation Payout||Success Fee||Compensation Payout||Success Fee|
If you want to see how much we would charge for a specific amount, please visit our online fee calculator at https://allegiant.co.uk/unaffordable-lending-claim-fees.
Please note that the examples in the tables are for illustration purposes only. They are not an estimate of the likely outcome or success fee.
You can cancel for free at any time within 14-days without giving any reason and without incurring any liability. You can communicate your cancellation by telephone, post, email or online.
You can cancel this agreement at any time after the 14-day cancellation period. However, if a complaint submitted by us is successful, the Success Fee will apply in the usual way.
You can cancel by post: Allegiant Finance Services Limited, Freepost RTYU–XUTZ–YKJC, 400 Chadwick House, Warrington Road, Birchwood Park, Warrington, WA3 6AE; (b) by email: email@example.com; (c) by telephone: 0345 544 1563; or (d) online at https://allegiant.co.uk/compliance/cancellation.
Allegiant Finance Services is widely regarded as a pioneer in the high cost loan claims management market.
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