viewMorses Club PLC

Morses Club stumbles as customers join those affected by Wirecard collapse

The doorstep lending company said its U Account customers' balances have been temporarily frozen

Morses Club PLC -

Morses Club PLC (LON:MCL) shares fell on Monday after it became the latest UK financial services company to be affected by the collapse of Wirecard

The sub-prime lender announced that account balances relating to its U Account customers have been temporarily frozen. 

The Financial Conduct Authority froze the operations of Wirecard Card Solutions, Wirecard's UK operation, which is the card issuer and banking partner for Morses digital current account business.

READ: Wirecard files for bankruptcy over threat of insolvency and over-indebtedness

Paul Smith, chief executive of Morses Club, said, “We understand the frustration and distress that the requirements imposed on Wirecard UK by the FCA are causing our customers. 

“We are in regular contact with the FCA and Wirecard UK to understand the situation and find a swift resolution for our U Account customers. While our customers’ money is not at risk, we understand the difficulty this temporary suspension is causing our customers and we are working tirelessly to find a solution.”

Last week UK fintech ANNA said it had temporarily suspended customer cards and accounts, with card provider Curve also disrupted by the German payment company’s demise.

UK regulator the Financial Conduct Authority said safeguarding rules would protect and return customer money if firm fails.

Wirecard is continuing its business activities despite filing for insolvency, the Wall Street Journal has reported.

Germany insolvency administrators can continue running the business as long as there is potential for a buyer to swoop in for the collapsed operations. 

Wirecard filed for insolvency last Thursday, a week after revealing that auditors EY were refusing to sign off on the company’s accounts over a missing €1.9bn.

There were reports that Wirecard’s UK business will appoint an administrator later on Monday.

Quick facts: Morses Club PLC

Price: 55 GBX

Market: AIM
Market Cap: £72.18 m

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