Our charges are transparent and straightforward.
If your case is lost, you do not have to pay anything. If you win Novitas is repaid from your award. This will include:
- An administration fee of £75 for each of the first five amounts drawn down from your loan. This is taken directly by Novitas and added to the amount drawn down.
- An interest rate of 15% per annum on any amounts drawn down. Interest is only charged on the money drawn down, not the whole facility.
Recent legal precedent may make a proportion of the interest recoverable from the other side. This is not guaranteed however. You should assume that the interest is to be repaid from your settlement.
Interest is accrued only on the money you use and calculated at a fixed rate of 15% per annum or 1.25% per month (not compounded), and due only when your case is complete and at loan settlement.
We take the annual interest rate of 15% (1.25% per month), multiply by the amount of the facility they have drawn and divide by the number of days that the money has been drawn down. For example, if you use £10,000 for 6 months, you will pay back interest of £774.
Total Amount of Credit: £100,000
Total Charge for Credit: £27,680, includes:
- £5,150 insurance
- £75 administration fee
- £22,455 loan interest (assumes full loan amount draw down on day 1)
Rate of interest 15% per annum (fixed)
Duration 18 months
Total Amount Payable £127,680
Representative APR 18.5%