Families Battle to Recover Deposits From Morar Care Group
Families have expressed anger and frustration after enduring months, and in some cases over a year, attempting to reclaim thousands of pounds owed by a care home operator.
Relatives of 10 former residents allege that Morar Care Group withheld amounts up to £19,000, which had been paid as deposits upon admission to the homes.
Some families engaged lawyers and debt collectors and considered civil litigation against the operator, which runs a home featured in an undercover BBC investigation last year.
The operator described the allegations regarding contracts and fees as "incorrect and misleading."
All families interviewed by the BBC reported receiving legal threats from the care provider for participating in the BBC programme Disclosure: Cashing in on Care.
Lawyers representing the care homes sent letters stating the allegations were "clearly very serious" and could cause "serious harm to our client" if broadcast.
Morar, whose parent company is Simply UK, operates Castlehill in Inverness, which was the focus of a BBC investigation revealing poor care standards last year.
The home was issued an improvement notice by the Care Inspectorate and placed under special measures.
The home has since been renamed Morar Highland and currently holds an adequate rating from the Care Inspectorate.
Following the undercover investigation, the BBC received numerous contacts from families alleging financial difficulties at Morar homes, including claims about reclaiming large deposits, referred to by the home as "initial fees."
Self-funding residents, who pay most of their care costs due to their savings rather than local authority funding, number approximately 11,500 in Scotland.
Wife Paid 'Phenomenal' Fees
Victoria Hogg's husband, Keith, moved into Morar's Musselburgh care home, Harbour House, in 2021 after a rapid-onset Alzheimer's diagnosis at age 64.
"I paid £24,000 before Keith entered the nursing home - £16,000 as the deposit and one months' fees in advance,"Victoria said.
"It was a phenomenal amount of money."
Keith's health deteriorated, and he died in June 2023.
His estate was owed nearly £19,000 by the care home.
"We had a period of going backwards and forwards, and nothing happening,"Victoria explained.
Her solicitor attempted to engage with the care home, responding to new document requests Victoria said were previously unasked for and sending unanswered emails.
"I just wanted to close this down and I couldn't. I got to the point where I finally got angry, because I felt as though they were just stringing us along.
It's a significant amount of money and it's not their money."
A year and a half after Keith's death, with the money still unpaid, Victoria contacted The Times newspaper.
"I was angry and incredibly frustrated and I could see no other option,"she said.
"Nothing about grieving your partner dying is nice, but you shouldn't have added complications."
Weeks after the newspaper's involvement, the money was repaid in January 2025.
"I have never received an apology,"Victoria stated.
"For the most part, I didn't have issues with the care that my husband received. But I would never, ever recommend anybody to deal with Morar, ever."
Aunt Often Found 'Distressed'
Several families raised concerns about care standards alongside financial issues.
Retired nurse Jacqueline Banks lodged complaints with the Care Inspectorate regarding her aunt Caitriona MacMillan's treatment at Morar's Oakeshott House in Stirling.
"They didn't give my aunt adequate pain relief at the end of her life,"Jacqueline said.
"She was often found distressed when we went in to visit."
The Care Inspectorate upheld eight complaints about Caitriona's treatment at Harbour House, including two concerning pain relief.
After Caitriona died in August 2023, Jacqueline appointed a debt collector to recover £9,600 owed by Morar.
"It was very, very, very difficult to pinpoint anybody who would take responsibility for this money,"she said.
"I thought about maybe taking them down the litigation side of things but the solicitor suggested a debt collector."
The approach succeeded, and nearly a year after Caitriona's death, the money was repaid.
"Families are being exploited at their most vulnerable time,"Jacqueline said.
"What concerns me is, there must be elderly people in these homes who don't have families to fight their corner. So what's happening to them?"
A spokesperson for Morar denied that residents faced undue obstacles in reclaiming their money.
The operator stated that all residents or their representatives receive contracts with clear terms and conditions before admission, including refund circumstances and procedures.
"As you would expect, before any refund can be issued, we must follow a process to ensure any funds are paid accurately and to the correct party,"the spokesperson said.
"We have a clear, written policy that explains each step, including the necessary legal checks needed to confirm that a third party is entitled to receive the funds."
The operator emphasized the importance of settling outstanding care fees to avoid subsidization by other residents or local authorities.
Regarding Jacqueline's aunt Caitriona, the operator confirmed morphine was administered twice at the end of her life.
Complaints to Councils
Freedom of information requests reveal that at least 25 families across four council areas lodged financial complaints about Morar homes over the past three years.
Complaints included unreturned deposits and confusing invoices.
One council wrote to the Scottish government describing Morar's refund policy as "unnecessarily complicated," expressing concern for residents lacking capacity and family advocates.
Morar's contract states funds held will be returned upon a resident moving or passing away but does not specify a timeframe.
The UK Competition and Markets Authority advises deposits should be refunded within 28 days.
Jim Pearson, deputy chief executive at Alzheimer Scotland, called year-long delays "appalling."
"There is no reasonable excuse why that can't be done in a reasonable timeframe.
I would suggest a reasonable timeframe would be a matter of weeks, maybe a month at the most."
The operator said it acts decisively where issues are identified and continues to enhance care, leadership, and oversight.
Jack Kirkland, a former Royal Bank of Scotland director, moved into Castlehill in 2022.
He paid an initial fee of £15,000, equivalent to three months' fees.
After concerns about Jack's care, the family moved him to another home in December 2024.
They requested a refund from Castlehill but encountered difficulties obtaining clear responses.
His daughter-in-law, Linda Kirkland, a former accountant, described the experience as "the final indignity."
"We started to pester and we were phoning, and we were going back and forward to the home,"she said.
"This went on for months, and the process seemed to change every time you went to it.
The frustration - you're so angry. The injustice of it really bites you."
It took four and a half months to receive the refund. Meanwhile, the Care Inspectorate upheld seven complaints about Jack's care at Castlehill.
A spokesperson for Morar stated that resident safety, wellbeing, and care remain their absolute priority and that they work closely to maintain high standards.
Most families approached the Care Inspectorate and local social workers for assistance but were informed financial issues fall outside their remit.
Others sought help from Trading Standards, Citizen's Advice, and the Competition and Markets Authority but found no organization able to assist.
Social care and its oversight are devolved matters.
While England has the Local Government and Social Care Ombudsman to investigate financial complaints, Scotland lacks a regulatory body with authority over financial complaints from self-funding residents.
Rosemary Agnew, Scotland's former Public Services Ombudsman, emphasized that people should not have to wait for owed funds and highlighted housing sector mechanisms ensuring deposit returns.
"It really comes down to access to justice if things go wrong,"she said.
"But there should also be accountability for not just the things that have gone wrong, but putting it right. And something like care, then I think it requires some form of state oversight."
Families interviewed by the BBC advocate for changes and the introduction of state oversight for financial complaints involving self-funding residents.
"If there's no regulation, there's no accountability.
Families shouldn't have to fight like this. It's caused a lot of anguish."Jacqueline Banks said.
The BBC asked the Care Inspectorate if it would support extending its remit to include financial conduct.
It responded:
"We are always willing to consider changes to our remit as determined by parliament."
The Scottish government was also asked about the regulatory gap.
Social Care Minister Tom Arthur said:
"When a person is self-funding their care this becomes a contractual matter between the individual and their care home. However, this should be protected by consumer protection laws."
Morar Care Group operates 18 homes across the UK, including nine in Scotland. All financial complaints relate to its Scottish homes.
Co-owners Christopher O'Brien and Gary Sharp transitioned from construction to care home management about seven years ago.
While families struggled to reclaim deposits, Morar's business has expanded significantly over the past three years.
Internal documents project Morar's turnover increasing from £29 million in 2023 to £122.5 million by 2030, with plans to open four new care homes in southern England this year.
The care provider denied historical allegations regarding contracts and fees.
A spokesperson added:
"In the unusual situation where care has fallen short of the high standards we expect, we investigate this thoroughly and take appropriate and prompt action.
Many of the allegations made by the BBC relating to care standards are untrue."
Jack Kirkland now resides in a new care home, where his family reports he is thriving.
"He's doing really well,"says Linda.
"He's well looked after. We do the quiz every day. Some days we've got to look stuff up, but he doesn't.
He's a different person. He's aiming for the 100 - and there's no reason why he wouldn't get there."
Additional reporting by Jax Sinclair.
