Morses Club PLC Statement regarding FCA Announcement (8476K)
18 December 2018 - 11:00PM
UK Regulatory
TIDMMCL
RNS Number : 8476K
Morses Club PLC
18 December 2018
18 December 2018
Morses Club PLC
Statement regarding FCA Announcement
Morses Club PLC (the "Company"), the UK's second largest home
collected credit lender, notes the announcement published by the
FCA this morning.
In response, Paul Smith, CEO of Morses Club, commented:
"We are proud of the high quality service we offer our
customers, consistently delivering customer satisfaction scores
above 95%. Our business model already supports appropriate
forbearance, and affordability checks are built into every loan for
every customer. Our sophisticated IT platform is already set up to
deliver many of the changes announced by the FCA today. We have
advanced plans to take customer communication even further in early
2019, giving the customer multiple channels to contact us 24/7. We
were glad to contribute to this consultation, thank the FCA for
their positive comments regarding the home credit sector, and
consider that these changes are unlikely to have an adverse impact
on our business."
For further information
Morses Club PLC Tel: +44 (0) 330
Paul Smith, Chief Executive Officer 045 0719
Andy Thomson, Chief Financial Officer
Panmure Gordon (UK) Limited (Nomad and Tel: +44 (0) 20
Joint Broker) 7886 2500
Richard Gray / Fabien Holler / Atholl
Tweedie (Corporate Finance)
Charles Leigh-Pemberton (Corporate Broking)
finnCap Tel: +44 (0) 20
Jonny Franklin-Adams / Emily Watts / 7220 0500
Anthony Adams (Corporate Finance)
Tim Redfern / Richard Chambers (Corporate
Broking)
Camarco Tel: +44 (0) 20
Ed Gascoigne-Pees / Jennifer Renwick 3757 4984
/ Kimberley Taylor
Notes to Editors
About Morses Club
Morses Club is the second largest UK Home Collected Credit (HCC)
lender with 230,000 customers and 1,942 agents across 98 locations
throughout the UK.
The Company offers a range of loan products to its customers
through its extensive self-employed agent network. The majority of
the Company's borrowers are repeat customers and the Company enjoys
consistently high customer satisfaction with scores of 95% or
above(1) .
The Company is using technology to broaden its offering and
provide new products to ensure customers can access credit with the
flexibility they require. In April 2016, its cashless lending
product, the Morses Club Card, was introduced, enabling its
customers to buy online as well as on the high street. Dot Dot
Loans, the Company's first online instalment product, was launched
in March 2017.
Morses Club successfully listed on AIM in May 2016.
About the UK non-standard credit market
The UK non-standard credit market, of which UK HCC is a subset,
consists of both secured and unsecured lending and is estimated to
comprise around 10 million consumers(2) .
Non-standard credit is the provision of secured and unsecured
credit to consumers other than through mainstream lenders. Lenders
providing non-standard credit principally lend on an unsecured
basis and the market is characterised by high frequency
borrowing.
Since February 2014, unsecured personal lending has grown from
GBP161 billion to GBP209 billion in February 2018(3) .
(1 Independent Customer Satisfaction Survey conducted by Mustard
2 FCA High Cost Credit Review Technical Annex 1: CRA data analysis
of UK personal debt - July 2017 3 Source: Table J Bank of England
Money & Credit Report February 2018)
About UK Home Collected Credit
UK HCC is considered to be a specialised segment of the broader
UK non-standard credit market. UK HCC loans are typically small,
unsecured cash loans delivered directly to customers' homes.
Repayments are collected in person during weekly follow-up visits
to customers' homes.
UK HCC is considered to be stable and well-established, with
approximately 1.6 million(2) people using the services of UK HCC
lenders.
(2 High Cost Credit Review ANNEX 1 - July 2017)
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END
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