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.
As of the 1st March 2022, we have implemented a new fee structure which we have explained below. If you signed your contract with us prior to the 1st March 2022, please refer to your signed claims pack for our previous fee terms.
Our fees are owed upon a successful claim and will depend on the amount of redress you receive in cash in hand compensation. This means we charge on what you actually receive, not debt or tax deductions. If income tax is deducted from 8% statutory interest received and sent to HRMC, we do not charge you on this deduction.
If successful, your fee will be calculated based on which band your redress falls into and will be charged by whichever is the lowest of:
The below table outlines the redress bands, the maximum percentage rate of charge and the maximum total charge is for each band.
|Band||Redress||% Charge (with VAT)||Maximum charge (with VAT) (£)||Maximum charge (without VAT) (£)|
|1||1 – 1499||36%||504||420|
|2||1,500 – 9,999||33.6%||3000||2500|
|3||10,000 – 24,999||30%||6000||5000|
|4||25,000 – 49,999||24%||9000||7500|
Examples of how this would work in practice:
|Band||Lower example||Higher example|
|1||You receive £100 in redress; our fee would be £36.||You receive £1499 in redress; our fee would be £504.|
|2||You receive £1,600 in redress; our fee would be £537.60.||You receive £9,999 in redress; our fee would be £3,000.|
|3||You receive £12,000 in redress; our fee would be £3,600.||You receive £24,999 in redress; our fee would be £6,000.|
|4||You receive £30,350 in redress; our fee would be £7,284.||You receive £49,999 in redress; our fee would be £9,000.|
|5||You receive £55,000 in redress; our fee would be £9,900.||You receive £100,000 in redress; our fee would be £12,000.|
If you owe your lender money (e.g., because you are in arrears or have an active loan), they may use some or all of your compensation to reduce what you owe them. If this happens, our success fee will be calculated on the actual cash in hand compensation that you receive, for example:
|1||You recover £1,000 but owe the lender £800 for an outstanding loan, so receive £200 cash in hand. Our fee would be 36% inc. VAT of £200 which is £72.|
|2||You recover £8,000 but owe the lender £2,000 for an outstanding loan, so receive £6,000 cash in hand. Our fee would be 33.6% inc. VAT of £6,000 which is £2,016.|
|3||You recover £21,000 but owe the lender £9,000 for an outstanding loan, so receive £12,000 cash in hand. Our fee would be 30% inc. VAT of £12,000 which is £3,600.|
|4||You recover £40,000 but owe the lender £10,000 for an outstanding loan, so receive £30,000 cash in hand. Our fee would be 24% inc. VAT of £30,000 which is £7,200.|
|5||You recover £70,000 but owe the lender £17,000 for an outstanding loan, so receive £53000 cash in hand. Our fee would be 18% inc. VAT of £53,000 which is £9,540.|
You would pay us the fee once you receive your cash in hand benefit from your lender, and your outstanding loan will also have been paid off at no additional charge.
Please note, the above fee examples are for illustration purposes only. They are not an estimate of the likely outcome or fee you will need to pay. Each claim depends on its own merits.
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 protected]; (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.
Contactable by email, phone, or post, whichever you prefer
We will only correspond with you and keep your details secure. We’ll never sell your data.
Much more than a contact form. With our full online application process you will receive an instant automated decision on whether we can take on your claim
We are proud to have recovered £millions on behalf of our customers
We’ve been claiming high cost loan refunds since 2013