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Solicitors: Clinical negligence

Application process

    What is the application process?

    To begin the application process, you will need to complete an application form on your client's behalf, and attach an accompanying insurance policy from one of the approved scheme insurers. You can access this online via your account which is available once you have signed Global Terms with Novitas.

    Once the application has been approved and credit checks completed, Novitas will then issue the loan documents to the client directly. Once Novitas receive the signed documents there is a statutory 14 days cooling off period before the first draw down can be made.

    How long does it take to get the loan in place?

    Once Novitas has received and approved the loan application, we will issue loan documents to the client. Once returned, there is a 14 day cooling-off period (to be compliant under the Consumer Credit Act) after which time the solicitor can request funds. The whole process typically takes 3-4 weeks.  Once the solicitor firm has requested a drawdown, Novitas will aim to send funds to the firm's client account within 48 hours.

    At what stage of the case can my client apply for a loan?

    Clients can apply at any stage.

    Does the firm have to prepare the legal agreement for the loan?

    No. Novitas is responsible for the loan contracts and legal agreements with the client. Once they are approved, Novitas deals directly with the client regarding the loan.

    Does the client have to take independent legal advice?

    We recommend to clients that they take independent legal advice (ILA) over the loan agreement to ensure they fully understand the terms of the loan. If they do not wish to take ILA we ask them to sign an ILA waiver stating that they are fully aware of the terms of the loan and have elected not to take advice.

    What does the client need to sign?

    Your client will need to sign the following:

    • A pre-contract information sheet
    • Consumer Credit Act regulated loan agreement
    • Adequate Explanations document
    • Deed of Assignment over proceeds of settlement
    • Authorisation letter, permitting you, their solicitor, to communicate with Novitas.

    What credit checks do you do?

    We carry out standard credit checks as part of the application. If the client has a County Court Judgement (CCJ) or Individual Voluntary Agreement (IVA) to pay off an existing debt, we are unlikely to lend to them. If after two months the Novitas loan has not been used, or the client later requires a loan extension, we will carry out a further credit check.