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Solicitors: Clinical negligence


    Is the client liable to repay the loan?

    Yes. The client instructs the firm to repay the facility from the proceeds of the case and takes out insurance in the event the case is unsuccessful.

    Is the firm liable if the case is lost?

    No, the insurance policy will repay Novitas. However, the firm will need to notify Novitas as soon as possible if the case is unsuccessful.

    Does the client pay interest as they go along?

    No. Interest is rolled-up so there is nothing to pay until the loan is settled.  As we do not compound the interest rate there is no cost penalty for waiting until settlement.

    Can the client repay the loan early?

    Yes. There are no penalties for paying the loan off early. We calculate interest daily so the shorter time they have the loan, the less they will pay in interest.  Note that the loan is not a revolving credit facility. 

    What happens if the client doesn’t use all of the loan?

    Any unused loan money is returned to Novitas. Interest is calculated on a pro-rata basis, in other words, applied only to the amount used.

    Can Novitas ask for repayment at any time?

    Any breaches of the loan agreement by the client can result in Novitas calling in the loan. This can include dis-instructing you as their solicitor without agreement from Novitas or failing to follow advice from their solicitor in any material way.