Last updated: 20th Feb 2020

Morses Club Review

About

Morses Club was launched more than 130 years ago as a departmental store, but later evolved into a recognized credit provider as the company was already providing goods on weekly credit to its customers. It provides small credit loans to its customers between the £100-£1,500 range, with new customers limited to borrowing up to £400 while returning customers may be approved up to £1,500. The company has several branches spread across the UK, allowing it to offer doorstep service. In 2015, Morses Club and Shopacheck Financial Services Ltd merged together to form a bigger company. Today, Morses Club deals with more than 200,000 customers through 1,900 company agents in the UK. The company also has another similar service called Dot Dot Loans, which is completely online.

Also Check: Simple Fast Loans Review

Types of loans

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.

Eligibility Criteria

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

Pros & Cons

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

Advantages

- An easy application process

The entire Morses Club application form is just one page long. Borrowers can also apply for a loan by making a phone call to a Morses Club customer service representative.

- Quick decision

Within minutes of receiving an application, Morses Club evaluates the creditworthiness of the borrower by conducting relevant credit checks. Then, borrowers are informed about the status of their application and whether they have been initially approved.

- Possibility of approval even with bad credit history

Every application is individually assessed by Morses Club. This allows borrowers with a problematic credit score to secure short term loans, provided they fulfill the eligibility criteria as stipulated above.

- Initial application does not require any documentation

The initial application is filed online or over the phone without any documentation, saving the borrower some time and energy before receiving initial approval for the loan. After this, a Morses Club representative arranges a meeting with the borrower at the latter’s time of convenience, and the borrower is expected to provide the required documentation at this stage.

- No restrictions on spending

Borrowers are not limited to spend their loan on pre-defined expenditure. The borrowed amount can be spent as per the borrower’s wishes.

Disadvantages

- Borrower must live within an area covered by a local Morses Club branch

Borrowers who don’t live in areas covered by any Morses Club branches will not be able to secure a loan from the lender

- First time customers can only borrow up to £400

The amount that first-time Morses Club borrowers can acquire is capped at £400, which is lower as compared to other short term loan providers present in the UK.

Borrowing costs charged by Morses Club

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:

Loan Type	Loan Amount	Loan Term	Total Repayable	Charge of Credit
Short Term Loan	£100	22 weeks	£154	£54
Short Term Loan	£100	34 weeks	£170	£70
Short Term Loan	£600	34 weeks	£1,020.00	£420
Short Term Loan	£600	53 weeks	£1,113.00	£513
Short Term Loan	£1000	53 weeks	£1,855.00	£855

Information Required To Apply

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

Full name
Email address
Mobile phone number
An alternative contact number
Date of birth
Marital status
Home address (to verify whether the borrower resides within a local Morses Club branch)
Loan receiving preference (either in cash or through the Morses Club Card)
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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How To Apply With Morses Club?

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

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.

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).

FAQs

Yes, the company conducts a credit check through a credit reference agency as part of the initial application process. However, in case the agency is unable to provide sufficient information for Affordability Assessment purposes, Morses club then request additional documentation pertaining to income and expenditure of the applicant.

Yes, Morses Club evaluates loan applications on a case-to-case basis, and even those with a bad credit score may be able to secure a loan, provided they are able to prove adequate affordability when it comes to making repayments. Also, making timely repayments can improve the borrower’s credit score, enabling access to cheaper loan options through conventional financial intermediaries such as banks.

A doorstep loan, as provided by Morses Club, is a short term loan that allows the borrower to manage the loan from the comfort of home without needing a bank account. The loan amount, as approved, is disbursed in cash, and delivered to the borrower’s doorstep by a company agent. Similarly, weekly repayments are also collected from the borrower’s doorstep by an agent.

Yes, Morses Club allows borrowers to make weekly repayments with a debit card through its Customer app that can only be accessed via a computer. Although weekly visits would continue to be made by a Morses Club agent assigned to the borrower, repayments can be made online. However, customers will have to wait at least 7 days before receiving access to the online repayment feature.

Yes, even if the borrower has been a long-term customer of Morses Club, the affordability assessment must be conducted every time a loan application is filed. This is done to ensure that the borrower still has enough disposable income to service the loan repayments as they become due.

Lenders like Morses Club

Morses Club is providing short term loans, but it is not the only option at your disposal for short term credit. Here are a few other short term credit providers based in the UK. These have also been reviewed and rated by Credit Raters.

Broker/Lender	Description
Simple Fast Loans (lender)	Payday short term loans available between the £250 to £1,000 range. Payment plan is split over weekly, monthly, or fortnightly due dates. Interest charge is a flat 205.2% per year.
Peachy (lender)	Payday short term loans between £100 to £1,000 range. Loan term is defined by the borrower up to 12 months. Interest charge is fixed at 248.37% per year.