Lender issues profit warning over rise in complaints
Nottingham-based subprime lender, Morses Club, has warned that an increase in complaints submitted by claims management companies could affect its performance in the first half of its current financial year.
The issue first came to light in February, with the firm saying it would “tighten its criteria” to ensure the quality of its lending is maintained.
However, in an update this morning (June 21), Morses Club said its home collected credit division has seen a recent increase in complaints submitted by claims management companies.
The statement added: “Claim volumes are now back at the levels previously reported in February, and it is anticipated that if these levels of claims are sustained, the cost of these complaints could adversely impact the company’s trading performance in the first half of the current financial year ending 25 February 2023.”
The company expects that full-year results for the 52-week period ending 26 February 2022 will be announced on 18 August.
