31st May 2018 11:00
31 May 2018
Morses Club PLC
Statement regarding FCA review
Morses Club PLC ("the Company"), the UK's second largest home collected credit lender, welcomes the conclusion of the FCA's high-cost short-term credit review and is pleased to see the FCA's proposals to implement new rules across the sector to ensure fair customer outcomes.
Morses Club currently adheres to best practice guidelines in the areas the FCA is seeking responses on, underpinned by the Company's significant investment in technology and its prudent approach to lending. We expect that the proposals will have a minimal financial and operational impact on the Company going forward.
Morses Club is a fully FCA regulated lender and is committed to transparency and fair outcomes for all customers. The Company continues to work positively with the FCA.
In response to today's announcement, Paul Smith, CEO of Morses Club, commented:
"We consider that our historical technological developments and future enhancements, already in scope, alongside our conservative growth targets put us in good stead following the FCA announcement today. We do not envisage any significant financial or operational impact on our business, which has always had customer forbearance at its heart."
For further information
Morses Club PLC Paul Smith, Chief Executive OfficerAndy Thomson, Chief Financial Officer | Tel: +44 (0) 330 045 0719 |
Panmure Gordon (UK) Limited (Nomad and Joint Broker) Richard Gray / Fabien Holler / Atholl Tweedie (Corporate Finance) Charles Leigh-Pemberton (Corporate Broking) | Tel: +44 (0) 20 7886 2500 |
finnCap Jonny Franklin-Adams / Emily Watts / Anthony Adams (Corporate Finance)Tim Redfern / Richard Chambers (Corporate Broking) | Tel: +44 (0) 20 7220 0500 |
Camarco Jennifer Renwick / Kimberley Taylor | Tel: +44 (0) 20 3757 4984 |
Notes to Editors
About Morses Club
Morses Club is the second largest UK Home Collected Credit (HCC) lender with 229,000 customers and 2,030 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.
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.
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 £161 billion to £209 billion in February 20181.
1 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 million2 people using the services of UK HCC lenders.
2 High Cost Credit Review ANNEX 1 - July 2017
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