Surprise refunds for thousands of borrowers who overpaid – are you owed £100s?

THOUSANDS of borrowers who took out loans from a major doorstep lender are being offered surprise refunds.
Customers of Morses Club could get cash back after an error which means they paid back more than they owed.


Thousands of Morses Club customers could be owed a cash refund after overpaying their loansCredit: Getty

It comes after thousands of current and former customers launched claims for compensation after being mis-sold loans.
But some of these borrowers who have already had their complaints upheld are now getting notification that they’re owed a cash refund on top of compensation.
The surprise refunds are being handed out to customers who were found to have made extra loan repayments in error.
For example, if a customer borrowed £300 and repaid £500 including interest but was asked to repay £600, Morses Club is issuing a refund.

They would get £100 back within 30 days of receiving a letter about the extra payments error.
It comes after a review by Morses Club found over £112million could be owed to customers who complained about affordability.
Thousands of customers have since launched claims for compensation after being mis-sold short-term loans worth between £200 and £1,000.
The lender estimates that over 600,000 are potentially affected by mis-selling and could make a claim for compensation.

Most read in Money

Morse Code has now started contacting customers who have had claims upheld about the refunds via email.
Sara Williams, founder of Debt Camel, said that it’s unclear how many are affected but didn’t deny that thousands of people could now be offered refunds.
Morses Club has been contacted for comment.
But the debt expert warned that the emails going out to customers may not be clear enough that this refund of cash is separate to any claims for compensation.
It refers to customers getting paid compensation for the affordability claims in the fourth quarter of 2024, but later says customers will also get “a refund” paid in 30 days and asks everyone to give their bank details.

Anyone contacted by Morse Club is being urged to read messages carefully, as they must take action to get the cash.
Customers could be due £100s back in cash, and must give their bank details to the lender so it can be processed.
If your claim was upheld because Morses Club found you were missold a loan, yo …