Morses Club Limited is a home collected credit lender. Its wholly owned subsidiary, Shelby Finance Ltd, is an online-only, high-cost, short-term lender.
The firms are no longer lending.
However, all existing loan agreements remain in place. The firms’ administration doesn’t change the payment terms and conditions of loans for customers of either Morses Club Limited or Shelby Finance Ltd. These are the same as when the loan was taken out. The firms remain subject to the same regulatory rules and requirements as they did before its administration.
Customers should continue to make repayments as normal. Failure to do so could affect your credit records. Any payment arrangements, such as a debt management plan, currently in place won’t be affected.
The FCA is in regular contact with the firms and the joint administrators regarding the fair treatment of customers.
In May 2023, the High Court approved a Scheme of Arrangement (Scheme) for Morses Club Limited for its redress liabilities relating to unaffordable lending between 1 April 2007 and 2 August 2022. Without this Scheme, Morses Club said it would have entered into administration earlier this year.
Morses Club Limited had been operating the Scheme, assessing claims and paying compensation to certain customers who were owed. The Scheme automatically terminated when the joint administrators were appointed.
In March 2023, following our request, Morses Club Limited agreed to hold money on trust for customers owed compensation so that those customers would not be in a worse position if the Scheme subsequently failed, or the firm later went into administration. This money is still held in a protected trust account.
The joint administrators will give more details about what the administration of Morses Club Limited means for customers who had a complaint or claim that was covered by the Scheme.
If you wish to make a new complaint, you can do this by contacting your lender as above.
The Joint Administrators will provide updates to customers, including on how complaints to Shelby Finance Ltd and all other types of complaints to Morses Club Limited will be dealt with in due course.
