Client ‘payment plans’ to finance barrister fees
Barristers will be able to offer payment plans to their clients under a new partnership agreement announced by the Bar Council with Legal Cost Finance (LCF).
The FCA-regulated service would provide clients with the option of paying for legal services by instalments on the basis of third-party credit agreements, while lawyers would benefit from full payment of bills on time through BARCO, the Bar Council’s escrow account service.
Unlike litigation funding, LCF provides direct financing that is not restricted to any particular type of legal matter, is not tied to the chances of success and is available for all types of legal costs.
The Bar Council said it would help barristers to secure more instructions from clients by offering convenient and affordable payment solutions.
Lawyers will be encouraged to offer a “moderate discount” from their legal bills so the arrangement becomes cost-neutral to the client, “in exchange for the assurance of funding availability and of timely payments”. The discounts are intended to cover the client’s arrangement fees (total £290) plus the interest rate (approximately 6% APR) over one year.
LCF founder and CEO, Dr Yuri Rapoport, is an Australian solicitor who founded the first law broking firm (Prime Law Brokers). He said: “We are confident that our ‘payment plan’ solution will become a useful tool for barristers, encouraging convenient and effective client relations.”
Paul Mosson, Director of Services at the Bar Council, said: “We believe that the service they offer will provide barristers with another valuable tool to secure work by presenting a payment solution for their clients, offering peace of mind to both the barrister and the client.”
