Morses Club went into administration in November 2023.
Morses Club was the largest doorstep lender in the UK after Provident stopped lending in 2021. See Morses Club goes under for details about why it failed.
In March 2024, the administrators have sold or written off all outstanding loans.
It is now expected that people who were promised refunds of hundreds or thousands of pounds in the Scheme will now only get a very small amount. the average is expected to be just £9.
The most recent administrators’ progress report in December 2024 still does not have a date when the distribution will be made.
Contents
How many current loans are there?
When Morses went into administration in November it had about 68,000 current loans. Roughly a third were in default.
Morses loans were typically between £300-1.500 and most recent loans were short terms for 3 or 6 months. Some of the current loans will probably have been repaid by now.
On 6 March 2024, the administrators announced that they have:
- sold some loans to Lantern;
- written off all the remaining loans
- closed the Morses Operations Team. It will no longer be able take phone calls or emails from customers or answer any queries.
Loans written off
Good news!
People with loans that have been written off have started receiving the following email from Morses:
We have recently conducted an account review and are pleased to inform you that we have taken the decision to write off your outstanding balance.
This means as of today you will no longer be liable for this amount and your balance has been reduced to zero.
We will notify the credit reference agencies of our decision. Your credit file should shortly be updated to show as partially satisfied with a zero balance.
This is good news as you will no longer be asked to make payments.
The effect on your credit record
Morses are adding a marker on your credit account to show that the loan is “partially satisfied”. This is visible to other lenders you may apply to but it does not affect your credit score. If your Morses debt already shows missed payments or a default, there is no reason to be concerned about this partially satisfied marker.
When there is a default date on the credit record, it will drop off six years after that default date. If there is no default date, just payment arrears showing, then the record will stay for 6 years after it has been written off. So it is in your interest that the default date should be as early as possible as this means the record will drop off sooner. The credit reporting rules say that a default should be recorded when an account is 3-6 months in arrears.
There may be problems with your credit record – perhaps some dates are wrong, your payments have not been accurately recorded, or Morses failed to add a default as soon as it should have.
If you think there is a credit record problem, you can no longer ask Morses Customer Services to correct it. Instead, you can ask the Credit Reference Agencies to correct this. See Correct credit records by “suppressing” them which explains what to do.
Loans sold to Lantern
Lantern is a debt collector. If your loan has been sold (the administrators use the legal phrase “legally assigned”), Lantern will send you an email about this.
You don’t have any right to object to this sale. Lantern now has the same rights to be paid by you as Morses Club had. And Lantern will update your credit record from now on.
If you are still paying Morses, you should stop and instead set up payments to Lantern. If you can’t afford the repayments, talk to a debt adviser.
I asked the administrators about affordability complaints and the loans sold to Lantern. They say :
the administrators proactively applied the Scheme’s Claims Methodology to customers’ loans to determine whether loans were affordable and/or sustainable or not and, where required, adjusted customer’s loan balances under the same criteria that was originally agreed in the Scheme even if no claim had been made. Only outstanding loan balances after this redress was applied was available for sale to Lantern and as such unaffordable lending complaints should have been addressed.
However, customers are still entitled to make a complaint and can do so by contacting complaints@lanternuk.com at Lantern. Lantern is now responsible for dealing with complaints in the first instance where they have acquired a customer’s loan.
So it may be that your balance now owed to Lantern is lower than the previous Morses balance if your loan was considered to be unaffordable.
UPDATE Refunds for affordability complaints – very small and delayed longer
The administrators say there is no money to pay unsecured creditors. This includes the 60,000 customers who had a claim to the Scheme for unaffordable lending upheld.
However, there is about £1,200.000 in a pot known as the Early Termination Fund that Morses put aside in case the Scheme failed. This will distributed to people who had a claim for unaffordable lending upheld.
£1.2million divided between 60,000 customers is a very small amount and the costs of distributing the money have to come from this pot too. The administrators say that the average refund may be only £9.
This is very disappointing for customers who had been told they had an upheld claim in the Scheme. Many people were expecting a refund of thousands of pounds.
Some people are now going to be due extremely tiny amounts – the administrators’ progress report in December 2024 says about 70 customers would get only one penny! The costs of making these payments are not worth it, so it is likely that there will be minimum size set. People who would get less than this minimum will then get nothing. I don’t know what the minimum will be, but it could be say £1 or £5.
The administrators have to go back to court to get their proposals for these refunds agreed. There is no expected date given for the distribution.
Warwick says
Lantern were a particularly unpleasant DCA although I have not had contact for a few years. Do not be bullied into paying more than you can afford. At least that is my unqualified advice.
Richard James Bond says
Lantern used to be 1st Credit, they were severely disciplined and fined by the FCA some years ago for breaches of protocol, bad business practices, and general rubbish behaviour. It resulted in a change of management, a new name, and a shiny new website telling us all how nice they are. Leopards don`t change their spots is all I will say about that.
Sara (Debt Camel) says
First Credit turned into Intrum.
Lantern was a rebrand of Motormile Finance (MMF)
Miss Kimberley says
When will we know if we will get any of the claim money back as it was settled and can we take this further to anyway else thanks
Sara (Debt Camel) says
So you made a claim nd had it upheld? Did you still Owe a balance?
Miss Kimberley says
I didn’t owe them anything my claim was due to be paid to me in September 9,500
Lesley F says
Hi Morses rejected my claim for unaffordable borrowing, they borrowed me one loan and after only paying around 300 of a 600 loan asked me did I want anther, the Womam at Morses even helped me fudge the figures to make it look like I more income ( I desperately needed the cash at the time stupidly) they gave me anther top up loan with no checks on any figures put down, my debt has gone to lantern which I’ve received emails today, can I make a irresponsible claim to lantern or am I wasting my time amd offer them a small amount a month as I can’t afford what they want back a month they should nener have borrowed me more thanks for your help
Sara (Debt Camel) says
until we know what the administrators are going to do about affordability complaints it is hard to say anything.
Richard S says
I had a claim with a win of £29500 before morses scheme of arrangement went in administration. I was looking at at least £6000. Now all I will receive is 26.00 if any. These scheme should not of been offered unless they are followed through. I know a person that was due a lot more and borrowed off a family member expecting the redress of around £10000.
I do not know what the are foing to do. The administrators should not of shown any information until the amount was 100% secure
Peter says
I had a door step loan with cash in hand I was paying faithfully until they went into administration I then did not pay they took a bad credit reference against my file and because of this it affected my credit file what can I do to stop this
Sara (Debt Camel) says
Has the debt been sold to Lantern or written off? Was this the first loan from Morses?
Terry says
I had missed payments with Dot Dot Loans (showing as a negative report on my credit file under the name Shelby Finance Ltd). Do you know if it’s possible to have this removed or suppressed now the company is in administration?
Sara (Debt Camel) says
Well really you need a reason why the loan should be removed. Are any of the dates or missed payments wrong? How many missed payments were there? Did you have previous loans before this one? How large was it?
Kathleen says
Is there any further update on when payouts will be made
Sara (Debt Camel) says
no. Payouts are going to be VERY small. Much smaller than you were told.
Chris I says
I find it preposterous that Morses Club customers, who suffered detriment due to the firms ill lending practices, may only share £1.2 million from the ETF.
Interpath are estimating their fees for this administration to be c£1.44million! There is also a caveat that Interpath will take their costs out of thr £1.2million ETF, reducing the potential redress to customers further. Another example of injustice for the consumer.
Sara (Debt Camel) says
The administrators are often the people that seem to do best out of an administration. But realistically they were not responsible for Morses lending, or the failure of the scheme.
Deborah w says
It’s unfair that some got sold to lantern and some got written of..my loan left to pay is less then somebody else’s that got written off
Sara (Debt Camel) says
had you missed payments to the loan?
Is the balance now with Lantern what you would expect? The administrators have now told me that before each loan was sold, they put it through the Scheme Affordability Checker and if it was unaffordable, the balance would have been reduced.
Deborah W says
Yes I had missed payments, I was paying what I could when I could as my husband had passed away so had a big change income so could not afford the regular payments.. just seems unfair that I know 2 people who both owed over £1500 and both there’s got written of mine is £700
Sara (Debt Camel) says
very sorry to hear that. What is the rest of your financial situation like at the moment> Do you have other debts?
How large was the loan at the start? were the payments affordable then?
Deborah w says
I have kept up to date with utility bills and rent.surley they should of checked my financial situation with me to puy it through a affordability checker..my morses collected had Been told my situation as to why I could not make the required payment weekly..I can not remember the original loan amount.. I am a widow on esa so not a high income. My payment amount was affordable at the time of taking out the loan
Sara (Debt Camel) says
“Affordability” is a test about your situation when the loan was taken out. If you were ok at that point, you will not win a claim about affordability.
But a creditor, including Lantern, has to take your current situation into account and treat you fairly.
Are you renting? Social or private?
Deborah w says
I rent from a housing association.. I’m trying to downsize my house so that I do not have to pay the vedroom tax but yhebprocess is not easy
I do not have a car as I do not have a driving licence
Sara (Debt Camel) says
then I suggest you talk to a good debt adviser about a Debt Relief Order (DRO). See https://debtcamel.co.uk/debt-options/dro/. that would wipe clear the loan now with Lantern and all your other debts as well – getting you a clean start.
Phone National Debtline on 0808 808 4000. They are very nice.
Deborah wood says
Thank you for your help
Zoe says
Mine been payed by my dro so please stop messaging me thank you
Sara (Debt Camel) says
if you are getting emails, you can unsubscribe from them
Carly S says
How long does it take for a default to be taken off your credit score if the debt is written off?
Sara (Debt Camel) says
it will drop off 6 years after the default date that is showing on your credit record. If there is no default date, it just shows as in arrears, then it will drop off 6 years after the write off.
BUT you can probably get the record removed if there is anything wrong with it – wrong default date, missing default date, wrong balance, wrong payment details etc See the article above which has a link for what to do
Marie says
Does this mean not get pay out we was promised told get it April 2024 now September not sure what believe what happening with pay out
Sara (Debt Camel) says
If you had a Claim upheld in the scheme, now it has collapsed any payout is likely to now be very tiny and will be delayed.
Stephen says
Hi, Sara
Was it the case that all complaints submitted before the 11/08/2022 would be settled in full if upheld. Did they not have money set aside for this then went for a scheme to limit the cost of further claims.
Sara (Debt Camel) says
No, a scheme affects all complaints in progress as well as new ones
Radio Rig says
Peter, that’s rough about the bad credit reference – have you tried disputing it with the credit agencies?
Angela says
I had email from morses they payed my balance of 680, then they would pay me 4 thousand five hundred in September 2024, can I asked will I get anything at all.
Sara (Debt Camel) says
as the article above says, you may get very little or possibly nothing
Miss Kimberley says
Hopefully we all get what we are owed the claim was already passed
Sara (Debt Camel) says
as the article above says, you may only get a tiny amount
Angela says
Yes hopefully
Tracy says
AM I right in assuming that there will be no redress for unaffordable loans that have been paid back? I was due a payment but looks like I won’t get anything now.
Sara (Debt Camel) says
it does sound as though any refund may be very small
Esohe says
I am very disappointed about finding out that the redress will not be paid as promised. Morseclub should never have asked us to enter the scheme in the first place if they could not uphold their own end of the deal.
Angela says
Yes I appsalutely agree, they shouldn’t of got people’s hopes up of getting anything back threw the scheme if can not follow threw with it, I no someone has taken a loan out threw a company and showed them the email what they suppose to be getting back in September, I really don’t no what they are going to do now, it’s shocking.
Moonraker says
My point and argument is moses club limited. Only looking out for there shareholders. To give mega thousands to the shareholders . Us the customers left with pitens meaning pence not pounds I had 2 1 was upheld never got a penny the second was said that it was aforbell
Paul R says
I had £6.578 to come back I have the letters there have sent I got told I would get paid in the 4th quarter of this year is that still true
Sara (Debt Camel) says
As the article above says, you are likely to get a much smaller amount.
Miss Kimberley says
I’m hoping so I should be getting 9,432back
Sara (Debt Camel) says
You should not base any plans on getting any significant money back.
Joan n says
I filled in form on March got told eas intitleld to refund send a email address nothing what’s happening
Stacey C says
Hi, if your claim was upheld by ombudsman before the scheme collapsed/administration started. Will I still receive this? Was due to receive payment 2 weeks after administration was announced
Sara (Debt Camel) says
I don’t think so, but you can ask the administrators
Miss Kimberley says
Hi Sara who do we ask as there is no email for them anymore
Sara (Debt Camel) says
Try customers_morsesclub@interpathadvisory.com
Alison says
I received a email last year as part of the scheme telling me I was getting c amount back, is this not the case anymore? Cause I lost the emails for the portal and I don’t have my scheme reference number, I don’t know what to do
Sara (Debt Camel) says
I am afraid the scheme collapsed when Morses couldn’t borrow enough money to stay in business. Now people owed compensation in the Scheme are likely to get very little.
Alison Gray says
Ah ok, so they will just email me, I don’t need the portal thing
Anthony M says
hi i have given a lot of information out over the last 16 months about Morses club scheme i had a conversation with some from Morses as well and have paperwork on the scheme, i am due a payment out in September this year but haven’t heard anything more, i’ve even gave them my bank details for this payment. how will i know if i am getting paid and how much ?
Sara (Debt Camel) says
The scheme has failed. You are likely to get little now.
Samantha J says
HI Sara,
I had my claim upheld, i had a letter saying my remaining debt which was with lantern had been written off and that i will get a payout by last quarter of 2024, i was wondering what will happen now as morses have gone into administration.
Sara (Debt Camel) says
when did you get this letter?
Sarah b says
Has there been anymore updates I was due roughly 8000 but knew it would be a max of 20 percent at most is it now nothing?
Sara (Debt Camel) says
There was an update last month, see https://find-and-update.company-information.service.gov.uk/company/06793980/filing-history
That says that the administrators expect the average distribution to people who had upheld claims in the Scheme will be £9.28. So very very small.
Evelyn says
Hi are u able to log into the portal? Everywhere I’ve tried is saying link disabled? I have moved house and don’t know where to change . Just hoping no letters are sent to other address
Gale says
Hello is there any update if they are still paying out in September iam ow 5250 pounds
Sara (Debt Camel) says
No they aren’t – and this isn’t just a delay. As the article above says, the Scheme has failed and you are now likely to get very little.
Gale says
This is so bad for all the people ow money
Sara (Debt Camel) says
very bad
Patricia H says
Hi both my husband and myself were told we would get £2900 then it said we would get 20% of this why can’t we find out what’s happening
Sara (Debt Camel) says
then it said we would get 20% of this
This was as part of the Morses Club Scheme you made a claim to.
That Scheme failed in November 2023 when Morse went into administration – like bankruptcy for a company.
You can see the latest administrators report here https://find-and-update.company-information.service.gov.uk/company/06793980/filing-history. I am afraid it is written in rather difficult language.
I would summarise the important bits as:
– There are about 65,000 customers whose claims were upheld, like you and your husband, who are now owed money
– there is very little money to be distributed
– the administrators at the moment think there is only about £1.2million to be divided between the 65,000 customers with upheld claims – that would an average of under £20 for everyone.
So I am sorry but you shouldn’t expect to receive any much at all.
Neil H says
not quite correct Morses had agreed with me that my loan was unaffordable and we agreed on a nominal monthly repayment (£10) . Now these third party interlopers disagree (“we have investigated and find no reason for you not to make full restitution “) If I don’t pay “further action will follow”
Sara (Debt Camel) says
so you have a decision from Morses saying the loan was unaffordable but they did not at that time remove the interest? How long ago was this?
Neil H says
we came to an informal agreement 2 years ago
Sara (Debt Camel) says
well that is a difficult situation. Because you didn’t ask for the interest to be removed at that point. And the administrators say they would not have sold any loans that were unaffordable.
I am not sure what you do except make any arrangement with Lantern.
Elizabeth says
I was told I would get a payment on August and just wondering if there any up date
Sara (Debt Camel) says
was this before November last year? At that point they went into administration (like bankruptcy for companies) and the Scheme that would have paid you collapsed.
See the article above. You are now likely to get very little and there are no dates for this tiny payput
Neil H says
Hi Sara I decided to deal with Lantern and agreed a repayment plan of £5 per month to be reviewed after 6 months
lisa G says
it seems morses isn’t paying anyone even when we did apply through the portal for payment breakdown I was due to get £3436 was told it would be paid by September given bank details. Now there is no way to communicate with morses all portals have been removed so you can’t even see your previous agreement and all other communication has been removed even customer service. At least provident held up they’re agreement when they went into administration had no issues with them. Morses staff shareholders and administrators will all benefit but not the customers who by the way kept them in a job
Sara (Debt Camel) says
Provident never went into administration. Their scheme completed successfully and, as planned, they closed.
The Morses situation is completely different. They wanted to borrow more money to be ble to carry on in business – when that failed the scheme failed and they went bust.
Morses shareholders have lost everything. Morses staff have either lost their jobs or will soon.
You are likely to only get a very tiny percentage of the money you were told you could get.
Richard S says
Hello.
I was due £26850.67 and chances are I will get if I’m lucky £20.
I do really feel bad for the staff but tge shareholders should if looked into the situation and pulled out like my relative did, as the shares started taking a dip.
The only issue I have is that I had paid up my loans in full and struggled because of it. I now find out that a percentage of the loans outstanding have either been written off or a huge percentage deducted.
Sara (Debt Camel) says
A lot of things feel unfair in insolvency proceedings. I am afraid there is nothing that can be done about this.
darrell says
didnt receive any payments from morses
Sara (Debt Camel) says
The scheme refunds that were calculated were cancelled as the scheme failed. See the article above.
Rachel says
I also have not received my payout and cannot get on the morses scheme page as it doesn’t exist now was told I would get my money by September of this year 1500 no idea what to do now phone numbers don’t exist either
Mrs Nadine says
Hi I’m in the same situation was told refunds will not be paid till September 2024, and my bank details are not the same as I gave them can’t log on as it’s disabled not sure what to do.
Pami says
Hello, can someone post a phone number for Morses I am not able to reach them.
I am also not able to log on to their portal.
Tracie says
I was due around £600 from Morses which then went down to £135. I don’t owe them a penny so I doubt I will get anything now. It’s very disappointing but not much we can do about it.
Jamie says
No wonder they said everyone would get paid September 2024 given them enough time to go into admin and letting us customers to foot the bill someone needs locking up for this travesty!
Angela says
Yes I agree, I was suppose to get 4,500 this month fuming about it.
Alison Gray says
I was supposed to get just over £900 back in June
Miss Kimberley says
Same here I was meant to getting over 9,000 it’s an absolute joke we should still get something
Richard S says
Same here originally I was due 29850 and was told it would be a redress of 20%. Which would of been just under £6000. I paid all my loans back and then had to keep borrowing and paying and most of the time refinancing. So if I would of not paid my last 4 loans back I would of more or likely had them wiped clean. Because I had 4 running simultaneously. Which was about 3000 with interest.
MW says
You quoted that the payment may be an average of£9.28. That is the actual money amount? Or is it 9.28% of the redress?
Sara (Debt Camel) says
All the administrators say is that the average payment be £9.28.
They haven’t said what percentage that will be, but it wouldn’t be 9% unless the average “full refund” calculated was only £100, which is incredibly unlikely. I would expect it to be less than 2%, possibly less than 1%.
Sonia Morgan says
Well if that’s all we are going to get back then they can keep it. We have been treated appallingly. I had paid my loan back in full and owed them nothing and this is what they may give me back from the almost £1000 they owe me? I’d prefer they gave me nothing back and thank goodness I wasn’t depending on it like others are. I’m still fuming though. MY LOAN did the same, agreed they owed me £3,000 paid £120 instead. So glad I don’t need these kinds of companies anymore 🤷🏾
Pearl says
Hi I was also told I would receive £9000 by the end of September still waiting Morses sent me an email wanting bank details to pay the amount into
Does it now mean I will receive nothing
Sara (Debt Camel) says
it is likely you will only get a very tiny amount of that.
Lee says
The court ones have been thrown out as there are not enough funds
Will be lucky to get £9 per £100
But I thought it was October for any payouts
This has not been updated to clarify when people claims will receive anything
Sara (Debt Camel) says
It is very unlikely you will get £9 per £100. The administrators say £9 may be the average payment made
Anthony says
It said I was all £10,000. I owed them about 3500, so they white that clear and said I am old is just over 7000 and I will get 20% of that and they said I would get it in the fourth quarter, So either October, November or December
Sara (Debt Camel) says
You won’t get this money. The scheme has failed. You will Only get a very tiny amount.
sandra says
Hello Sara. I am still waiting to hear about my claim with Morses Club. Cannot get hold of anyone. I did agree to the Scheme of Arrangement. They did send me a letter in 2023. As to date heard nothing at all Do you have any idea about the above. Thankyou. Kind Regards .
Sara (Debt Camel) says
What did the letter in 2023 say?
Kerry Wood says
Hi further to your email l would say they wouldn’t have paid anything to anyone as past credit companies have written debs off or informed credit bureau as settled as tappily went into administration and they informed the bureau as settled
Sara (Debt Camel) says
That depends on the details of the individual company. I have seen payouts rang from nothing to over 40%.
Faye says
Hello,
I have a question unrelated, I think. I have a salary sacrifice loan and my company has gone into administration. I understand that I need to pay what I borrowed still but it is now coming out of my bank as a direct debit, meaning I am not paying it before tax. Is this fair? What can I do about it? Can I ask my new company to set it back up as a salary sacrifice.
Sara (Debt Camel) says
are you sure this is “salary sacrifice”, not a loan from a lender such as Salary Finance repaid by deductions from your wages?
Faye says
Hmm, yes the loan is from salary finance.
Sara (Debt Camel) says
ok that is not, so far as I know, anything to do with a salary sacrifice scheme, and it would be repaid from your new wages with no tax advantage.
These are often pretty expensive loans. Read https://debtcamel.co.uk/refunds-large-high-cost-loans/ and consider making an affordability complaint about it.
What other debts do you have? Look at affordabiltiy complaint about them too.
if the repayments are unaffordable, talk to StepChange about a DMP for all your debts https://www.stepchange.org/how-we-help/debt-management-plan.aspx
Linzi says
Hi, does anyone know if we get a payout ? Seen few people say September and I not had mine just wondering if anyone else has yet x
Anthony Aitchison says
No, we’re not going to get anything because the scheme failed. They knew exactly what they was doing. They told everybody to wait till next year but they’ve gone bankrupt and literally nobody will get shit, piss take.
Jack says
Hi sara is there any news on what’s happening with morses
Sara (Debt Camel) says
No new news – the situation remains as described in the article above. No-one should be hoping for anything but a very tiny payout and there may be nothing
Dean Morley says
I still not received my refund yet and can’t get hold of anyone about it
Sara (Debt Camel) says
The refund you were promised in the Scheme? That isn’t going to happen – the Scheme has failed and Morses are insolvent. See the article above – you may only get a tiny amount paid at some point.
Pamela E says
I smell a great big RAT here. I will be taking this further and suggest everyone got taken advantage of do the same. I am owed tousands and you are now saying 0.9 pence. Pull the other one. You will hear from newspapers tv news and my lawyer. Diisgraceful
Alison Gray says
Absolutely agree, I was supposed to get just over £900 back in June 2024 after agreeing into the scheme in 2022, I thought it was June 2023 but when I spoke to a woman at morses she said oh no it’s June 2024 cause we have to wait for everyone’s agreements to be finalised, what a load of rubbish
Kuldip Kaur says
Hi I agree with you this is getting ridiculous now
9imon Hempstock says
Simon hempstock
I I was told that 1 the loan was unaffordable lending but they changed there mind said I have no chance of getting paid this is incomplete of moses club denied lies
Jack says
I see there has been a latest letter to all creditors, stating there is an extension put in now going be 16 November 2025. So take nothing till then people.
Angela says
When was the latest letter been sent out, I haven’t received one as yet jack
Jack says
Look at the site below this there is an updated letter to us all with update stating extension till November next year . https://www.ia-insolv.com/case+interpath+MNB15F4337.html then look down to the reports you will see it sat NEW in green
Angela says
Thank you I’ve seen it, hope get something
Sara (Debt Camel) says
the average payout will be less than £10. Expect very little, even if you were originally expecting thousands in the failed scheme
Steve P says
When the date for paying the redress was announced,I remember thinking,
that’s a long time.
Am I the only person,who thinks,Morses Club deliberately dragged their feet when it came to paying out,because they knew they were 99.9% certain to go into administration and therefore avoid paying anyone or if they did,a miniscule amount?
Angela says
Was due 4.500, it’s shocking really
Sara (Debt Camel) says
yes it is