A Client Credit account allows Clients to finance the cost of your divorce legal fees and disbursements (subject to status) for up to 36 months, or until your case is completed if sooner.
Interest is only charged in relation to the value of the costs actually paid from the account, calculated a rate of 1.5% per month. Clients are expected to make monthly minimum payments. They can also choose to pay more than the minimum payment or repay the entire balance at any stage without penalty, which would reduce the amount of interest they pay. The account is then due for repayment in full once a settlement has been reached (or a Consent Order has been made). The account can be used at any stage of the proceedings and covers costs in relation to all aspects of divorce.
If you are a Client and would like to apply, simply contact your solicitor via whom, we will provide you with the pre-contract credit information and the credit agreement for signature. You must read the pre-contract information carefully as you will be bound by the agreement once you have signed it.
What is Iceberg Client Credit and how does it work?
A Client Credit account will allow you to finance the cost of your divorce legal fees and disbursements (subject to status) for up to 36 months, or until your case is completed if sooner.
Am I eligible?
As with any finance arrangement, it is important that you do not borrow more than you can afford to repay. Before applying you must be sure that your settlement will be sufficient to repay your Client Credit account in full at completion of your case or that you have some other means of repaying the outstanding balance, and that you can afford the minimum monthly interest payments.
How do I apply?
To apply, simply ask your solicitor who will provide you with the pre-contract credit information and the credit agreement for signature. Please read this information carefully as once signed, you will be bound by the agreement.
How do I pay legal fees using Client Credit?
As part of your credit agreement with us, you authorise your solicitor to drawdown their fees from your Client Credit account. Each time your solicitor requests a drawdown we will notify you and advise you of any change to your monthly payment. We will charge a drawdown fee each time we pay your solicitor on your behalf.
Will I have a credit limit?
Yes, an initial credit limit will be set based on the amount you request at the time of application. If your legal costs are greater than anticipated then we can consider a credit limit increase, subject to status.
Is there a monthly minimum payment?
Yes, you are required to make minimum payments of 1.5% of the outstanding balance each month, together with any drawdown fee payable.
Are there any penalty charges for early settlement?
No, you can repay part or all of the outstanding balance at any time without penalty.
What are the costs?
There is no application or joining fee. We charge interest on the outstanding balance at a rate of 1.5% per calendar month. For example, if the outstanding balance of your account was £1,000, then you would pay £15 in interest that month.
Do I have to use Client Credit to pay all fees?
No, you can choose which fees you add to your Client Credit account.
Do you pay commission to my solicitor?
No, we do not pay commission to your solicitor. It is important to remember that your agreement for Client Credit is solely with us.
What happens if I stop instructing my solicitor?
If you cease your instruction, either because you no longer wish to proceed, or wish to change your solicitor, then you must immediately repay the outstanding balance of your Client Credit account in full.
Representative Credit Example
Amount of credit: £5,000 for 12 months. Interest: £900. Interest rate: 18% per annum (variable). Drawdown fee £25. Initial payment of £100 followed by 10 monthly payments of £75 and a final payment of £5,075. Total payable: £5,925. Representative 20.2% APR
Why should my clients apply?
Client Credit has been designed around the needs of your clients. No expensive application fees and, as our loans are unsecured, clients do not need to take independent legal advice. Account opening is simple, quick and inexpensive.
It works by providing clients with an online payment account from which we pay fee notes, disbursements and VAT ‘costs’ directly to your firm as they fall due. The account can be used at any stage during the proceedings and covers all legal costs in relation to all aspects of their divorce proceedings.
Is my client eligible?
Clients facing divorce often experience a period of emotional and financial turmoil, making the use of traditional credit scoring techniques ineffective. Instead, we rely on you and your understanding of the case to identify those clients who can reasonably be expected to repay the account, usually based on the anticipated value of their divorce settlement. As a guide, we suggest that Client Credit is only offered as a payment option where settlement value is expected to exceed three times the costs.
Whilst it is the client’s obligation to repay the account, and we will take reasonable steps to enforce this, it is important to note that we can ask your firm to repay some or all of the costs we have paid.
How do I charge costs to the Client Credit account?
Costs are charged to your clients’ accounts via your secure online dashboard. Simply select ‘Request Drawdown’ and choose the client from the dropdown list. Enter the value of the costs to be charged in the ‘Amount of Fee Notes/Disbursements’ box and click ‘submit’.
We will write to the client advising of the request and the requested amount will be sent to your firm’s account 14 working days later.
When does the loan fall due for repayment?
The loan falls due for repayment within 14 days of the proceedings being finalised. Of course, settlement doesn’t always take the form of cash and we recognise that for many clients it may take time to sell property or otherwise refinance the family home. We always try to work with you, and the client, to find a suitable solution including, when appropriate, allowing additional time to repay.
If you are a solicitor and would like more information, please enter your email address below.