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If you have received a letter about your civil litigation case, please click here for more information. 

About the loan

Information about insurance cover

If you have received a letter about your insurance cover, click here for more information. 

What can the loan be used for?

The loan is regulated under the Consumer Credit Act 1974, and can be used solely to pay for any disbursements associated with your civil litigation legal proceedings, for example court issue fees, medical reports and GP records. 

How does the loan work?

The loan is a pre-approved facility. The money is drawn down as it is needed and paid directly to third party providers to reimburse them for disbursement costs associated with your case. You do not have to use the entire loan amount and interest only accrues once the money is sent to reimburse third parties. So, while funding is always available, you only pay for what is used.

The loan contract is between you and Novitas. Your solicitor has an obligation to communicate to us any material facts that may affect repayment of the loan during your case and to pay off the loan from any proceeds received as part of your settlement. The remaining amount will be passed on to you.

A Novitas loan for a civil litigation case operates on a no-win, no-fee basis, provided you continue your claim until the conclusion of the court case.

If your claim is successful, the loan amount will be recovered from the opponent. If your claim is unsuccessful, it is covered in full by a Legal Expense Insurance Policy, which is arranged by your solicitor and you will not be liable to repay the loan.

How much does the loan cost?

Our charges are transparent and straightforward.

If your case is lost, you do not have to repay anything. If you win Novitas is repaid from your award. This will include:

  • A documentation fee of £98.40 if you request a home visit to sign your loan agreement. No fee applies for electronically signing your loan agreement via ‘e-sign’.
  • An administration fee of £60 for each of the first three amounts drawn down from your loan. This is taken directly by Novitas and added to the amount drawn down.
  • Interest rate of between 15.3 - 30.3% per annum (dependent on claim type) on any amounts drawn down. Interest is only charged on the money drawn down, not the whole facility.

Interest is fixed and calculated on a simple basis, i.e. there is no compounding of interest. 

We take the annual interest rate, multiply by the amount of the facility they have drawn down and divide by the number of days that the money has been drawn down for.

The interest rate will vary between 15.3% - 30.3% dependent on the Civil Litigation product.

Representative Example: 

Total Amount of Credit: £26,000.
Total Charge for Credit: £12,015, includes: 

  • £98.40 documentation fee  
  • £60 administration fee
  • £11,856 loan interest (assumes full loan amount drawn down on day 1)

Rate of interest: 30.3% per annum (fixed)

Duration: 18 months

Total Amount Payable: £38,015
Representative APR 30.9%

How long do I have to repay the loan?

The agreement has no fixed duration but will last at least 12 months. It will end once all sums due are repaid.

Do I have to have insurance?

Yes. Your loan must be covered by a Legal Expense Insurance Policy which will repay the loan if your case is not successful. 

How is the insurance arranged?

Your solicitor will arrange the insurance with our approved insurer. The cost of the insurance is only payable if you win. If your case is lost, you do not have to repay the premium.

What happens if my case is unsuccessful?

Novitas is repaid from the insurance policy so there is nothing for you to pay.


What happens if I agree to the loan but choose not to proceed?

If you wish to cancel your loan, you can do so within the 14-day cooling off period upon signing your agreement and you are not required to repay the funding loan. If you wish to cancel after this period, the loan will need to be repaid as per the terms of your agreement. 

While your case is active

Can I change solicitor?

The loan is linked to your current solicitor, who has an obligation to Novitas under the agreement. Any new solicitor will have to be approved by us (and agree to take on your case) otherwise this is a breach of the loan agreement. In this case, the loan will need to be immediately repaid.

Can Novitas stop funding during the case?

Yes, in the event of any fraudulent activity we will immediately stop the funding.


How do I find further information about the status of my litigation claim?

For information on how your claim is progressing or any further details about your claim, you will need to contact your solicitor directly. 

Can I cancel the claim?

If you wish to cancel your claim, please contact your solicitor.


Do I have to pay anything back?

Your claim operates on a ‘no win, no fee’ basis, as the loan is insured with After the Event legal expenses insurance. This covers the full loan amount should your claim be unsuccessful. Where your claim is successful, the loan amount will be recovered from the opponent, so you will not require alternative funds to repay the loan.

How much will my settlement be?

To understand what your settlement may be, please speak directly to your solicitor.


When will I receive my settlement?

For information about when you will receive your settlement please speak to your solicitor.

Your solicitor

What happens if my solicitor is suspended?

If  your solicitor is suspected from practice by the Solicitors Regulation Authority during the term of the loan, you can cancel your loan facility which will require immediate repayment or with our written permission, transfer the loan facility to another solicitor.

What is the difference between my solicitor and Novitas Loans?

Your solicitor will carry out the legal proceedings to pursue your claim and provides you with legal advice. Novitas provide funds to pay for third party disbursements (costs) incurred by your solicitor in relation to your case, so that they can carry out this work. The funds will be used to pay for expert reports, barristers, court costs and other legal fees. 


When will I receive my settlement?