What agreement is in place between the firm and Novitas?
A framework agreement is put in place between your firm and Novitas. This is a global terms agreement so is only signed once and will cover any loans Novitas makes to your clients under this scheme.
Access to the scheme is only available to firms that are a member of ACTAPS or have a reasonable level of experience in contentious probate.
The agreement includes the following undertakings:
to only use the scheme for cases you believe meet the lending criteria
to inform Novitas of any material change in the case that may impact its ability to recover the loan. Material changes are defined in the agreement and your client will sign an irrevocable undertaking to allow this
to provide regular case updates when requested
to pay Novitas from any proceeds you receive as part of the settlement, before passing on the remainder in accordance with your client’s instructions. Your client will give you permission for this by signing a deed of assignment with Novitas
There is no financial undertaking from either the solicitor or the firm. The loan is between Novitas and your client.
There is no cost to the solicitor to join the scheme.
A Novitas loan can be presented as an option for your client to consider. We will provide information for you to provide to your client on how the loan works, clearly stating that you are not recommending it. We will also send our FAQs to your client when they apply for their loan.
In our experience, some firms have added a section to the client care letter saying that they are an approved firm and for further information directing them to the Novitas client FAQs.