Morses Club Review

Morses Club offers short term loans ranging between £100 to £1,500. The company calls its loans Doorstep Loans or Home Credit Loans, since they can be provided to customers at their doorstep in cash. The loans are provided to people with varying credit scores, including those with a bad credit rating, although a thorough check of the borrower’s income stream and credit history is conducted to ensure ability to repay the loan in due time.

• Borrowers are not required to be homeowners to apply for a Morses Club loan.
• Borrowers may be unemployed/on benefits and/or living as a tenant/with parents, and still qualify for a loan with Morses Club.
• Repayments are made every week starting 7 days after the loan amount is disbursed
• Repayments are collected by a designated Morses Club agent from the borrower’s home
• Repayments can also be made online through debit cards by using the Customer app

The following loan amounts and terms are allowed according to a customer’s relationship with the company:

• New Customers can borrow from £100-£400 with a payback period of 22 weeks or 34 weeks.
• Existing Customers can borrow from £100-£1,000, although up to £1,500 can be borrowed subject to approval by the company. Amounts up to £500 can be repaid in either 22 weeks or 34 weeks, and amounts exceeding £600 can be repaid in either 34 weeks or 53 weeks.

To make loan disbursement easier, the company also offers a Morses Club Card which acts like a debit card. Once a loan is approved and if a borrower opts for or owns a Morses Club Card, the approved loan amount is transferred to the card by the company for the borrower to spend.

The following criteria needs to be fulfilled in order for a borrower to secure a Morses Club loan. Borrowers must:

1) Be over the age of 18

2) Not have a record in the previous 6 years that includes:

• a bankruptcy declaration,
• an application for Sequestration,
• a Debt Relief Order,
• Individual Voluntary Agreement.

3) Live within the prescribed business area as covered by the nearest branch of Morses Club

Applying for a loan with Morses Club has the following pros & cons:

Morses Club charges interest on the loan principal based on a fixed rate of 107.1% per year.

• No additional charges are levied in case of late or missing repayments
• Interest rate charged per week is fixed at the beginning of the loan

The representative APR on the loan varies by loan term. For example, on a loan amount of:

➢ £100-£500, the company charges an APR of

• 716.48% if the loan term is 22 weeks and
• 446.37% if the loan term is 34 weeks.

➢ £600-£1,500, the APR is

• 466.37% over 34 weeks and
• 280.63% over 53 weeks.

The following table offers an illustration of the different borrowing costs as charged by Morses Club:

The following information is required when the borrower fills out the application form, either online or over the phone:

1. Full name
2. Email address
3. Mobile phone number
4. An alternative contact number
5. Date of birth
6. Marital status
7. Home address (to verify whether the borrower resides within a local Morses Club branch)
8. Loan receiving preference (either in cash or through the Morses Club Card)
9. Contact preference (which communication mediums Morses Club representatives should use to contact the borrower)

After the initial application form, a Morses Club representative reaches out to the borrower (if the initial application is approved) and requires the following information:

1) A valid ID

This can be any photo ID such as a driver’s license or a passport, provided it has not expired.

2) Documents to conduct Affordability Assessment (may only be required in case borrower’s agent is unable to verify affordability status through a credit reference agency)

a) For income, the following documents may be provided as proof:

• i) Documents stipulating wages including wage slip, P60, remittance advice, accounts record, HMRC letter, etc.
• ii) Documents mentioning benefits including pension letters or pension scheme letters that mention entitlement, or a pension statement
• iii) Other income documents such as a Foster Income Remittance Advice.

b) For expenses, the following documents may be provided as proof:

• i) For rent, through a local authority letter or a landlord’s letter (both mentioning the contractual payments), or the rent book
• ii) For mortgages, a mortgage statement or a mortgage provider letter that mentions the contractual payments is sufficient
• iii) Any Morses Club Loans
• iv) For other loans, financial statements, a letter from the loan provider that states contractual payments, or a payment receipt boo
• v) For utilities, any bills or a letter from the utility provider that mentions contractual payments
• vi) For living costs including money spent on childcare, letters from registered Childminder or play scheme leader should suffice, as long as they mention contractual payments.

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Morses Club has a two-step application process, starting from the initial application and ending with a personal visit from a local company representative.

Step 1 - Access and fill out the online application form

Borrowers can access the online application form and click on the Apply Now button. This button is available on the top-right corner and also in the center of the page, as shown below.

The application form, as presented below, requires the borrower to state all necessary information. The entirety of the form is presented on a single page, making it easier and quicker to complete the application form.

By clicking the Submit button, the initial application is submitted to Morses Club.

Alternatively, borrowers can contact a Morses Club customer service representative by calling 0330 045 0719 and file the initial application over the phone.

Step 2 - Visit from a Morses Club representative

Usually, it takes a few minutes for Morses Club to deliver an initial approval to a loan application. After such approval is given, a representative of Morses Club pays a visit to the applicant at the address specified on the initial application form after scheduling the same over the phone with the borrower at a convenient time.

The representative confirms the information pertaining to the applicant as stated in the form by checking a photo ID and, if needed, verifies the income and expenditure information by seeking some additional documentation. Once all the required information is provided, the representative will conduct the affordability assessment. If the borrower passes the affordability assessment, the loan amount is disbursed through cash delivery at the borrower’s state home address, or through the Morses Club Card (if the borrower has subscribed to one).