Families Face Uphill Battle to Reclaim Care Home Deposits from Morar Care Group
Relatives of ten former residents have accused Morar Care Group, whose parent company is Simply UK, of withholding significant sums, described as "initial fees", paid as deposits. Some families have resorted to legal action and debt collectors to recover their funds.
Morar Care Group, which operates Castlehill in Inverness – a facility that was subject to an undercover BBC investigation last year revealing poor care standards – has denied the allegations regarding contracts and fees, labelling them as "incorrect and misleading". The care provider also threatened legal action against families who participated in the BBC programme, "Disclosure: Cashing in on Care", claiming the allegations would cause "serious harm" to their client.
Difficulties in Recouping Funds
Victoria Hogg, whose husband Keith died in June 2023, was owed nearly £19,000. Despite persistent efforts, the money was only repaid in January 2025, over a year and a half later, after she contacted a newspaper. Similarly, Jacqueline Banks, a retired nurse, employed a debt collector to recover £9,600 owed after her aunt's death. The money was eventually repaid almost a year later.
Freedom of Information requests reveal that at least 25 families across four council areas have lodged concerns about financial issues with Morar homes over the past three years. These complaints include unreturned deposits and confusing invoices. One council described Morar's refund policy as "unnecessarily complicated" in a letter to the Scottish Government.
While Morar's contracts stipulate that funds will be returned if residents move or pass away, they do not specify a timeframe. Guidance from the Competition and Markets Authority (CMA) suggests deposits should be returned within 28 days.
Regulatory Oversight Gap
A significant issue highlighted by these cases is the lack of a clear regulatory body in Scotland with a remit for financial complaints from self-funding residents in care homes. Unlike England, where the Local Government and Social Care Ombudsman can investigate such matters, Scotland currently lacks a comparable mechanism.
Former Scottish Public Services Ombudsman, Rosemary Agnew, emphasised the need for state oversight and accountability, suggesting that individuals "shouldn't have to wait for something that is due" to them. Social Care Minister Tom Arthur stated that while self-funded care is a contractual matter, it should be protected by consumer protection laws.
Morar Care Group has stated that it follows a clear policy for refunds and denies that residents face unnecessary obstacles. The company, which is expanding, maintains that the safety and wellbeing of residents are its "absolute priority".
