Morris Plan Bank

Morris Plan Banks were part of a historic banking system in the United States created to assist the middle class in obtaining loans that were often difficult to obtain at traditional banks. The first Morris Plan Bank was established in 1910 by Arthur J. Morris (1881–1973), a lawyer, in Norfolk, Virginia who noticed the difficulty his working clients had in getting loans. The plans established installment credit for customers. The second Morris Plan Bank opened in Atlanta in 1911. Lending required the borrower to provide references and proof of earnings to establish the borrower's credit worthiness. The banks gave depositors interest to secure funds for the loans. The banks were eventually organized as a New York-based banking organization (holding company) and made small loans to moderate income families through banks in more than 100 U.S. cities. In 1917 credit life insurance plans were offered. Morris Banks made 1,760,000 loans in its first 12 years, amounting to about $320 million. The bank were affected by the Great Depression and changes to the banking industry in its aftermath.