Nottingham lender pauses claims against ‘unaffordable’ loans

Nottingham-based subprime lender, Morses Club, has said it is suspended processing claims made against its “unaffordable” loans while it pursues the potential use of a Scheme of Arrangement.

The firm says the Scheme of Arrangement, part of the Companies Act, would “treat all customers equitably and settle eligible redress claims over a period to be defined”.

Morses Club says that by pausing claims it will be able to develop the details of any such Scheme. The firm has also appointed an unnamed independent chairperson to set up a Customer Committee to represent eligible customers and assist the company in developing the detail of any potential Scheme.

Gary Marshall, CEO of Morses Club, said: “The company’s decision to pause the processing of new redress claims with immediate effect represents a significant step in ensuring that we can successfully progress a potential Scheme of Arrangement. This helps to provide greater certainty with regard to the total liability arising from customer complaints and sets the business on a more secure footing for the future. We continue to work with all our key stakeholders to develop the detail of the potential Scheme. Our deep commitment to providing customers with access to credit in a growing market remains unchanged.”