Consultation on compensation interest levels launched by the Financial Ombudsman Service
4 June 2025
Today we opened a consultation on the interest rate applied to the compensation awarded to consumers.
Information for customers of Morses Club PLC
We are aware that Morses Club PLC (“Morses Club”) is proposing a scheme of arrangement with its creditors for complaints about unaffordable lending.
Latest update: June 2023
Morses Club’s proposed scheme of arrangement with its creditors has now been approved by the court.
This affects consumers who received a loan between 1 April 2007 and 2 August 2022 and made a redress claim on or after 11 August 2022 due to that loan being unaffordable.
Where there is a creditor and court-approved scheme like this one, consumers will be able to make a claim for redress directly through the scheme. So, it’s not appropriate for us to consider complaints further. We’ll be writing to consumers to explain the next steps.
Complaints we can continue to look at
We can continue to investigate the following complaints as they’re not covered by the scheme:
- unaffordable lending complaints made directly to Morses Club before 11 August 2022 about loans lent on or before 2 August 2022
- complaints about unaffordable lending after 2 August 2022
- complaints that are not related to unaffordable lending
All other complaints should be referred directly to Morses Club. More information can be found on Morses Club’s website.
You can find our previous update to this news story below:
-
We are aware that Morses Club PLC (“Morses Club”) is proposing a scheme of arrangement with its creditors for complaints about unaffordable lending.
This was affecting customers who received a loan between 1 April 2014 and 2 August 2022 and made a redress claim in respect of that loan on or after 11 August 2022. However we're now aware Morses Club has expanded this to customers who received a loan between 1 April 2007 and 2 August 2022.
If it’s approved by creditors and the court, customers with complaints will be able to make a claim for redress directly through the scheme. Until then, the firm is not currently in a position to pay any redress awards we make, even if we were to assess your complaint and instruct it to provide compensation. If the scheme is rejected by creditors or the court, the firm has indicated that it would become insolvent and would be unable to pay any redress awards we make.
In these circumstances, we’re not currently progressing complaints further or taking on any new complaints affected by the scheme. We’ll be contacting consumers who already have complaints with us to let them know the next steps. We will make further decisions about new and existing complaints in light of any further developments.
More information can be found on Morses Club’s website.
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