Morses Club no longer extends credit to new customers

Doorstep lender Morses Club is no longer extending credit to new customers as it switches its business model to comply with new social distancing orders.

The Leeds-based firm said that while it remains in a "robust overall financial position" and had held positive negotiations with funding providers, its cash flows were being supported by the temporary cessation of home collected credit loans, significant tightening of online lending decisions, cutting discretionary expenditure and the increased focus on collections.

It is also to withdraw its financial guidance for FY21 and will not recommend payment of a dividend in July, Morses had intended to announce its results on the 30 April 2020 but said this will now be delayed.

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Meanwhile all operational field management and agents are now working from home and face-to-face customer visits replaced with a remote customer communication strategy.

Paul Smith, CEO, Morses ClubPaul Smith, CEO, Morses Club
Paul Smith, CEO, Morses Club

Over 82,000 customers are now registered for the online customer portal through which 41% of all collections were already completed remotely.

It said@ "Customer response to paying remotely has been very strong since the impact of COVID-19, with all agents and field managers now focused on collections and engaging with our customers through the comprehensive technology already in use across the business."

It added: "Over 50% of our customers are in receipt of state benefits or pension earnings and a significant proportion of our customer base is self-employed. The recent Government announcements regarding grants for the self-employed, and maintenance of 80% of earnings for employees who may become furloughed workers, are expected to help our customers to maintain levels of income."