Morses Club Share Discussion Threads

[yump] 16/3/2021 16:56

A statement to say what exactly ?

That the scumbag claims lot are way more exploitative than any lender ?

And the stupid journalists just encourage them and give the “I deserve better” crowd ammunition.

Punish the regulated businesses, so the thugs can take over.

[ronwilkes123] 16/3/2021 16:38

Glad i got out before bell, wont be pretty in the am with that ut

[ronwilkes123] 16/3/2021 16:33

I emailed investor relations earlier asking if theyd put out a statement - received nothing whereas normally they reply within 10 mins.

Its self perputating if they dont comment on it.

[riverman77] 16/3/2021 16:31

Given this is now down around 15% I think they do need to say something to clarify either way.

[ronwilkes123] 16/3/2021 16:30

Appears now in freefall

Sold whilst dust settles

8-10% daily drops are too much

[yump] 16/3/2021 15:41

Also the mcl salaries are actually nothing special.

Quoting big profits is what journalists do, while choosing to ignore the need for dividends for pension funds and investment.

It just perpetuating financial ignorance.

Everyone will still shop at Amazon because its easy and quick, while it gradually destroys small businesses.

[yump] 16/3/2021 15:30

For me this has highlighted recent confusion with covid, in the assumption that some data from last year can be compared with any other year.

Given the turmoil, what were the chances if complaints NOT going up ?

Ron
In all seriousness, its worth trying not to react + and - to everything thats going on.

A rise in complaints will not see the end of MCL loans.

The reason for the increase in “have you lost money in investments ?” Parasite calls, is that probably most people have since March last year.

Opportunistic scumbags and while working on my PC I’ve managed to waste about 3 hours of their time so far.

If everyone else did the same they wouldn’t bother.

[madmaxhunter] 16/3/2021 14:43

Simon,

ref:

At least the Morses guy was by far the thinnest of the "fat cats" LOL!!!

[ronwilkes123] 16/3/2021 14:42

Excellent analysis into the provident issue from yesterday yump

Glad i waited for it

[yump] 16/3/2021 14:23

Traders have a trading strategy and change views about businesses with the share price movements.

Nice not to have that problem.

Funny how a drop brings out the same old - don’t people actually bore themselves ?

[riverman77] 16/3/2021 13:57

I guess if there was something along those lines then it would kill the business model, but can't see it right now given the colossal amounts of government debt - this would effectively be giving away money (perhaps something you might see under a future Labour government).

[ronwilkes123] 16/3/2021 13:51

the journalist is advocating publicly funded loans to replace provident and competitors

[riverman77] 16/3/2021 13:50

The argument that this type of lending has had its day doesn't really make sense as there are about 10m people who can't access standard credit and in some shape or form this segment of the population needs to be serviced. If not by legitimate firms such as Morses, then it will be unregulated loan sharks which can't possibly be better.

[ronwilkes123] 16/3/2021 13:19

times article probs doing the damage this afternoon, saying basically this type of lending has had its day. Cant see this recovering quickly until final results

[smithie6] 16/3/2021 13:05

ronwilkes

indeed, good point.

tricky sector of clients
paying high % interest 'cause of the high risk that they don't pay it all back

be nice if everyone in society had the brains to be a software engineer & get their high pay (& not need a loan at a high % interest rate), but that is not the real world

[opaldouglas] 16/3/2021 12:36

Hi all,

Some interesting discussion, first and foremost it's good to flag risks. I often think advfn has 75% people running their own book. I'm not sure in the grand scheme of things it actually makes any difference. In my eyes what's really important is figures.

I'd implore investors who take MCL as a serious investment to take a step back and look into these issues, speak with the FOS and management (where possible). I keep a keen eye on the FOS FCA complaints data, it's readily available online and includes both Morses Club and Provident. See link below:

hxxps://www.financial-ombudsman.org.uk/data-insight/half-yearly-complaints-data

Provident's complaints have indeed been going through the roof recently, complaint are up from 3536 in 2020 h1 to 10387 in h2 of which 74/75% are upheld in the customers favour.

Provident Complaint Numbers

2020 h2 10387 (upheld 75%)
2020 h1 3536 (upheld 74%)
2019 h2 1930 (upheld 59%)
2019 h1 1131 (upheld 47%)

To put this into context Provident's CCD division had circa 379,000 customers in h1 2020, that's a complaint rate of 0.93%, this has now risen to circa 2.74% in h2 2020.

Morses is really a different story in terms of numbers, complaints have indeed increased, but by a much smaller number. from 53 in h2 2019, to 224 in h1 2020 and finally 794 on 2020 h2. Whilst any increase is of course unwanted, Morses does have a lower upheld rate averaging 64%. See figures below:

Morses Complaint Numbers

2020 h2 794 (upheld 63%)
2020 h1 224 (upheld 65%)
2019 h2 53 (upheld 66%)
2019 h1 below 30

To compare the two Morses HCC customer complaints ranges from 0.13% to 0.46% in 2020, Provident ranges from 0.93% to 2.74% in 2020 with a much larger customer base. Provident CCD customers numbers in h1 2020 was 379,000 vs Morses 170,000. This really reinforces my view that Morses does focus on quality over quantity and backs up Morses ethos and customer review data that they are always so keen to reference.

In summary, Morses had 1018 customer complaints in the whole of 2020, at 64%, that's 652 complaints upheld. It's unlikely this will impact FY 2021 results due out 13th May as we've already had a beat on expectations from the Morses via latest trading statement. Certainly one for all investors to watch but in my view comparisons with Provident are unwarranted.

Additionally a collapse in Provident CCD will only provide a larger customer base for Morses club, as long as they stick to a robust lending criteria.


@SimonGordon - Glad you're well. Extra regulation is always a risk, can't disagree with that. You'll laugh at me but in the instance it's all about the fundamentals, valuation still stacks up and I see good growth drivers. At these levels I really like the risk vs reward.

OD

[ronwilkes123] 16/3/2021 11:58

What will happen of course smithie is the market entrants will contract, leading unregulated sharks to enter. If Dave from the estate in bognor thinks hes done well getting his interest back, he'll do better when he has much less product choice in the future. Where do the FCA believe these people will turn.

[smithie6] 16/3/2021 11:55

be interesting to see what happens with Amigo & PFG (& any others) (& the FCA) with their schemes & borrowers voting on it

will ppl there vote to agree to get back less than what they claim ??
( if wonder if the schemes say 'we will pay you all of your claim but we won't ('cant') pay the claims of your claim handling company. Be interesting if so.

FCA of course do not agree to these schemes of arrangement since they dont agree to pay the full amount claimed.

------

FCA are in court for allegedly not having done their job in an intentional scam where 11000 nvestors in a regulated co. put in ~£230 million, 8% interest was advertised !,
imo the FCA is guilty & is going to get a real slagging off in the judge's guilty sentence.

(the investors have only got 25% back so far.
the money was siphoned/lent to friends & contacts apparently....never to be seen again.
the marketing firm got 25% of the money investors put in. Damning proof imo.

(an IFA apparently wrote to the FCA in 2015 warning them about this scam but the FCA allowed it to continue to ooerate & didnt act until 2019. ffs !!
So the FCA are gonna get fried in the current court case imo.

[riverman77] 16/3/2021 11:25

The claims companies needed something to replace PPI claims.

The fact that MCL seem to have good relationship with FCA should help. Also, the actions of PFG yesterday may encourage the FCA to be pragmatic and take a less hardline approach - they probably don't want to see them going into liquidation which wouldn't help anyone.

[simon gordon] 16/3/2021 11:18

The Sun had a pop at Morses in 2018:





-----

Opal,

All's good thanks, hope the same for you.

Yes, I agree the future strategy looks sound and profitable. Just whether the CEO and CFO live up to the corporate ethos or whether it's just propaganda. Suppose with these type of companies mistakes or regulatory issues can hit you hard, IPF have had countless issues from the regulators for years, never ending story. Don't know if the Johnson government have any plans. PFG's home credit blowing up will certainly raise eyebrows.

[smithie6] 16/3/2021 11:17

these claims companies have lept in to action in 2020

I get the feeling that the amounts of money paid as compensation (at Amigo etc) are much higher than the loans involved, so I guess these claims' companies charge high hourly rates & high profits

phps the FCA should review "their" conduct ??!!

[riverman77] 16/3/2021 11:08

From the risk section in last results -

During the past year, the Group has seen a noticeable increase in the level of complaints received from Companies (CMCs). In many cases, these have been spurious or allegedly sent by individuals who have never been customers or have been sent without the customer’s knowledge or consent. CMCs are now regulated by the FCA and it is hoped that they will act more responsibly in the future. The Group is actively engaging with FOS and the FCA through the sector trade associations.

[riverman77] 16/3/2021 10:39

If MCL have tight processes in place to check affordability of every loan then they should be covered - if they have all the documentation in place then claim management companies probably won't waste time pursuing cases against MCL. Hard to say, but MCL seem to be well managed and prudent so I suspect they'll be OK.

[its the oxman] 16/3/2021 10:22

Good 20% plus off its recent high, so much more tempted to add than sell, especially sub 60p. Regulation may curb some of the higher long term targets but no stock is without risk. Taking the view that next results will make a big effort to reassure on this count , if they do plenty of upside will be seen.

[ronwilkes123] 16/3/2021 09:29

hxxps://www.reclaimexperts.co.uk/doorstep-loan-reclaim/claim-morses-club-refund/

going after morses just as much as provident