CCTA welcomes the plans of home credit lender, Morses Club, which will provide more access to responsible credit

Commentary | 16/04/19

Over the weekend, an article published by the This is Money website gave a refreshing insight into the provision of home credit. The home credit industry is frequently maligned in the press and by consumer activists but this particular article highlighted how there are approximately 10 million people in this country who cannot borrow from mainstream banks or building societies. And of those 10 million, more than 1.5 million cannot access any form of online credit.

This potentially leaves many consumers exposed to illegal lenders so I welcome the mission of Morses Club boss, Paul Smith who aims to modernise the business and expand into new areas such as Visa debit cards on which loans can be loaded onto and online lending. As we have repeatedly maintained, different customers have differing credit needs but all have a right to access responsible credit, and a right to choose what credit they require.

Morses Club provides a number of credit options to its customer bases, including its online lending brand, Dot Dot Loans which recently expanded by 50,000 customers when the company acquired most of Curo Transatlantic, after it fell into administration. However, while Smith is looking to increase his customers numbers to 250,000 for both home credit and online borrowers, the article notes that growth will not come at the expense of profitability, as “Morses has a robust track record and is determined to maintain it”.

The product diversification of Morses Club is a welcome feature in an industry which is currently being strangled by regulatory creep so I fully endorse the company in its continued plans to provide responsible credit to borrowers. The CCTA will always work with legislators and the regulator to find the right balance between access to responsible credit and protection as we aim to ensure the market provides a valued service, but proportionate regulation is a must if we are to deliver the best outcome for consumers.

Greg Stevens