{"id":135408,"date":"2023-12-06T16:39:00","date_gmt":"2023-12-06T16:39:00","guid":{"rendered":"https:\/\/allmybiznews.com\/?p=135408"},"modified":"2023-12-06T16:39:00","modified_gmt":"2023-12-06T16:39:00","slug":"loan-sharks-circle-desperate-borrowers-after-doorstep-lender-folds","status":"publish","type":"post","link":"https:\/\/allmybiznews.com\/business\/loan-sharks-circle-desperate-borrowers-after-doorstep-lender-folds\/","title":{"rendered":"Loan sharks circle desperate borrowers after doorstep lender folds"},"content":{"rendered":"

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Thousands of desperate borrowers are being warned they are at risk from loan sharks now that Morses Club, one of the last remaining doorstep loan providers, has folded.<\/p>\n

Being left high and dry after the lender, along with its brands Dot Dot Loans and Shelby Finance, went into administration makes families, often with poor credit scrores, hugely exposed to illegal or exploitative practices \u2013 and never more so than over the Christmas period and New Year.<\/p>\n

Morses\u2019 customers, some 40,000, will still be expected to repay their loans.<\/p>\n

However help could be available from fair, responsible lenders, urges not-for-profit financial inclusion organisation Fair4All Finance, supported by the Illegal Money Lending Team. CDFIs, as they are also known, can be found here.
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Don’t miss… <\/strong> New report warns of huge dangers loan sharks pose for hard-up vulnerable<\/strong><\/p>\n

While expensive when compared with loans from mainstream banks, Morses was a regulated lender, and a safe, legal route for many unable to access mainstream credit.<\/p>\n

Lauren Peel, consumer insights director at Fair4All Finance, says: \u201cMorses Club\u2019s collapse comes at a particularly difficult time if you were planning to take out a loan to help during the Christmas and New Year period.<\/p>\n

\u201cResponsible CDFIs may be able to offer you a fair loan even if you have a less than perfect credit score. They have your best interests at heart so they won\u2019t lend to you unless they think you can afford repayments and will make a decision that is right for you, based on your ability to repay now rather than your credit history alone.\u201d<\/p>\n

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Specific risks to Morses\u2019 customers<\/h3>\n

Fair4All Finance expects that some Morses Club employees may continue to lend to their existing contacts, with some customers being unaware that this is no longer a safe way to borrow.<\/p>\n

This is based on what happened when Provident (another home collected credit provider) left the market in 2021. Their home collection agents were made redundant, but some continued to lend and collect from customers.<\/p>\n

Because this was the same person who had been coming to offer them a loan or taking repayments for years, many borrowers were unaware that they had no protections any more.<\/p>\n

Customers with outstanding loans are expected to continue making repayments.<\/p>\n