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Morses Club PLC on Thursday said it has paused the processing of all new redress claims for ‘unaffordable lending’, with immediate effect.
Morses Club is a Nottingham, England-based home collected credit provider and online lender.
In July, Morses Club said it will pursue a scheme of arrangement to deal with customer redress claims for ‘unaffordable lending’ against the company.
On Thursday, Morses Club said it has paused the processing of all new redress claims, to allow the company to develop a potential scheme to ‘ensure the equitable treatment of all customers.’
‘As previously announced, the directors believe that a successful scheme would provide more certainty in respect of the total liability for redress claims and help to secure the longer-term stability of the company,’ it explained.
Morses Club also said it has appointed an independent chair to set up a Customer Committee to represent eligible customers and assist the company in developing the scheme of arrangement.
Any potential schemes will be subject to approval from the majority of affected customers and the court, it added.
Chief Executive Officer Gary Marshall 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.’
Shares in Morses Club were down 0.5% to 5.02 pence each in London on Thursday midday.
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