General
Through our network of financial institutions and brokers, we are able to originate unsecured Litigation Finance on behalf of the general public requiring funds to pay his or her attorney. Not only new clients can benefit from this offering, but existing clients can also apply for finance to continue with litigation or to settle outstanding accounts.
The entire process is extremely simple and the outcome of the loan application is known in a very short space of time. Below is a general discussion relating to the loans and the requirements that have to be met for a successful application.
The Loan
The client will apply for an unsecured personal loan through our network of financial institutions and brokers. The loan amount may vary from R2500-00 to R250 000-00. The repayment period will vary from six to sixty months depending on a number of factors, including the credit profile of the client. The interest rate varies according to the profile of the client and can be anything from between prime + 4% per annum to the maximum allowable under the National Credit Act.
In terms of our agreement with the financial institutions and brokers, the approved loan will be paid directly into the trust account of the attorney and we will inform the client and attorney of the payment of the funds into the trust account.
The Client completes a generic application (or information) form that is faxed through to CredAssist (preferably with the client's latest salary advice, three month's bank statements and certified copies of client's identity document). Within a very short period of time the financial institution will send a pre-agreement quotation to CredAssist that has to be accepted by the client (this is done in terms of the National Credit Act). Once accepted and returned to CredAssist, final approval and payment of the loan amount to the trust account of the attorney is awaited.
Role Players - Benefits
It is not difficult to understand that an attorney that is placed in sufficient funds will be able to focus on the work at hand. We believe the following factors are important for the attorney and the client:
1. The attorney is in no way party to the loan transaction. The attorney merely informs the client of the
option to apply for a loan. No financial advice is given to client by the attorney.
2. The money is received in the trust account of the attorney where the funds are retained for the benefit
of the client, until such time as fees may be debited.
3. A loan application can be made for any of the following cases, either by the client or any friend or
family member of the client:
a. Civil Court Matters - High Court and Magistrates Court
b. Matrimonial work, including divorces, custody matters, maintenance matters and family
violence matters.
c. Criminal natters
d. Labour Cases
e. Any other form of legal services that require payment to an attorney.
f. Outstanding accounts due to the attorney
4. The attorney receives no benefit from the transaction that has to be disclosed to the client. The only
benefit the attorney receives is the knowledge that sufficient funds are on trust.
5. The attorney will be provided with information pamphlets and application forms or it can be
downloaded from this site.
6. Legal services will become more accessible to a far greater number of people.
Law Society
CredAssist has submitted a formal request for a ruling from the Ethics committee of the Law Society for the Northern Provinces in respect of the entire process. They have provided CredAssist with a formal reply wherein they indicate that our service in no way breaches any of the ethical rules of the attorneys as long as the attorneys ensure proper accounting to the client in respect of the funds held on trust. The reply is available on request.
National Credit Act
The financial institutions are fully committed to comply with all the requirements of the National Credit Act, including aspects such as affordability and FICA. The mere fact that a client has a negative credit record or profile against his or her name, does not automatically preclude the client from obtaining finance. For such clients the only aspect will be the interest rate that will be charged by the financial institutions.
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Requirements for finance
Although each financial institution has their own set of requirements, we can summarise the most general requirements as follows:
1. Applicant must be a South African Citizen.
2. Applicant must be between the ages of 18 and 65 years old.
3. Applicant must have his or her own bank account.
4. Applicant must be employed for at least 6 continues (some cases 12) months with his or her present or past employer.
5. Applicant must not be under administration.
6. Application must be accompanied by latest salary advice, certified copy of identity document, three month's bank
statements.
7. Trust details of the attorney for payment purposes.