Client Credit from Iceberg
Client Credit from Iceberg is an online payment account from which, subject to application, they agree to pay fee notes, disbursements, and VAT directly to Prism Family Law as they fall due.
The account can be used at any stage of the proceedings and covers costs in relation to all aspects of divorce and cohabitation including child matters and cases concerning disputes over ownership of property under the Trusts of Land and Appointment of Trustees Act.
Iceberg charges interest in relation to the value of costs actually paid from the account, calculated at a rate of 1.5% per month or £15.00 per £1,000.00 of costs paid out.
In addition to that interest amount, you would also agree to pay a drawdown fee of £25.00 each time costs are paid from your account.
As with a credit card, you will be expected to make monthly minimum payments towards the account, and the monthly minimum payment is 1.5% of the outstanding balance.
For example, say you agreed to use the account to pay costs totalling £3,000.00. You would be expected to make a monthly minimum payment of £45.00, this being 1.5% of £3,000.00.
You can, of course, choose to pay more than the minimum payment or repay the entire balance back to Iceberg at any stage without penalty, which would reduce the amount of interest you are required to pay.
Who is eligible for a Client Credit account?
Clients facing divorce often experience a period of emotional and financial turmoil making the use of traditional credit scoring techniques ineffective. Instead, Iceberg relies on Prism Family Law and firms generally 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, Client Credit is only to be recommended as a payment option to potential clients for whom settlement value is expected to exceed three times the legal costs.
Of course, the settlement doesn’t always take the form of cash and Iceberg recognise that for some clients it may take time to sell the property or otherwise refinance the family home.
To that end, Iceberg will always try to work with clients to find a solution including, where appropriate, allowing additional time to pay.
For more information regarding Client Credit provided by Iceberg please do not hesitate to contact Prism Family Law or alternatively please visit Client Credit’s website found at clientcredit.co.uk.