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@Bobby21 I'm not sure there has been a ramp up in Facebook advertising for the company. Most adverts started running in December 2021 and there has only been one new one ad this year, which was in March.
This might change if there are new products being launched as you previously mentioned, but currently looks like its the status quo in terms of Facebook advertising.
Its probably worth noting that the two main CMCs advertising on Facebook to target Morses Club haven't reduced their adverts since they upped them at the start of t he year. However one does seem to be putting more effort to companies like George Banco than Morses.
Results are usually on a Thursday. Given the spruce up of the corporate site over the past few weeks. I'd be surprised if we don't here anything tomorrow or next Thursday.
@bobby21 Which new loan products are these? Within HCC or Digital?
Only meant this more background information about complaints pre the February 'surge' rather any new information about the current situation. However, again this does make question what could have significantly changed in February to cause a surge in the number of successful claims when CMAs appear to have been seeing a reduced success rate.
The FCA just published Morses' Complaint data from March'21-August '21. While the number of cases shot up to 10,214 the number of upheld cases was only 2,432.
I see that most CMC's have already tightened their criteria to a minimum of 4 loans before they will submit a claim.
Looks like Paul Smith is already out there testing the job market. His most recent linkedin post:
"After 7+ years of amazing times and glorious achievements, I am now seeking the next exciting adventure in my work life.
If you good folks in my network have any opportunities for me to look at, please don’t hesitate to contact me."
Just been using Facebook Ad library. Their December ads went down after Christmas/New Year but have started running them again the past week.
Just to add to couple of points made earlier:
We know from the FOS that the number of home credit sector FOS cases dropped to 751 and only had an uphold rate of 60% in Q3. There is very little evidence that cases have been a drag on the company for H2 until the past couple weeks. We also know that CMCs have been targeting Morses Club for a while and to date haven't had the same success rate as they had with other companies. On cases alone things would have to deteriorate pretty significantly over the next six months for it to take the company down.
Also to agree with Bobby 21 it's clear Morses Club have upped their marketing in the past week and are on a drive for customers.
I think the 80% uphold rate is referring to short term running account credit. Which the FOS describes as 'Running account credit is a type of short-term loan that is similar to an overdraft facility. Borrowers are given a 'limit' that they can draw up to as and when they need to, provided they pay at least the interest off each month. While the credit agreement has no fixed end date, this type of credit is expensive and intended for short term use only.'
When it comes to Home Credit the uphold rate has dropped to 60% from 75% in Q2 and has also seen a reduction in new cases between the quarters.
Burry Jr, A very good summation of the current situation. I was wondering if you had more evidence, other than the timing, to suggest the increase claims may be linked to the Provident Scheme of arrangement?
Looking at Facebook ads its clear that since the new year one CMC has massively increased spending and are specifically targeting Morses Club. They have also changed their adverts to specifically mention that anyone who has received more than three loans from Morses Club could be due a refund, which given the published FOS decisions against Morses Club appears to be what is happening.
I think you have done a great at putting the increase in complaints into perspective and Morses' ability to absorb them, but I remain sceptical that this is as temporary as you seem to imply.