Collaborative Q&A Review Document

Credit Score and Assessment

Question: What is the process if a credit score comes back low?

Answer: We are different from traditional lenders in that your credit score is not the primary determinant of our decision to approve or reject an application for funding.  We assess each individual, and their relative legal entitlements, on their individual merits. We appreciate that each applicant and each situation is unique and we will assess your request accordingly.   We also understand that sometimes the very act of separating from your former partner may have caused economic hardship and negatively impacted your credit score.  It may be comforting to know that we have funded many applicants who have low credit scores.

Question: How long does it take for the approval committee to assess the case if the credit score is low?

Answer: We understand how important funding can be to helping your case, and empowering you to achieve an equitable outcome. Consequently, we hold approval committee meetings regularly. Whilst approval timing may vary depending on the complexity of your specific case, we generally seek to make decisions within 2-4 business days. We will inform a prospective borrower and their solicitor of the outcome as soon as possible.

Question: Can certain circumstances or context around financial issues, like defaults, be explained to influence the decision?

Answer: Yes, most definitely.  We value an open dialogue with any applicant and their solicitor to provide any context and/or explanations that might be helpful to understand your unique situation.  Whatever you can share with us regarding your financial, legal or personal circumstances can assist us in forming a better understanding of your situation.

Question: Can JustFund's determination of the borrower's entitlement be discussed or negotiated?

Answer: While we are very happy to engage in a dialogue with prospective clients (particularly those whom we are unable to fund), we are not in a position to share our internal analysis as to your entitlements.  We do this because we are respectful of the role of your legal advisors whose role it is to advise you on your likely entitlements.

Question: Does applying for JustFund's services affect my credit score?

Answer: No, applying for JustFund's services doesn't affect your credit score. We perform what is called a “soft” credit check. This enquiry will be noted on your credit report to record that we have simply reviewed your credit score, however this will not negatively impact your credit score.

Question: How does a client's credit rating affect their application with JustFund?

Answer: JustFund approves many borrowers who have poor credit scores. Unlike traditional lenders, we are not fixated on financial metrics like your credit score, employment history or income when considering your eligibility. Instead, we assess each applicant as an individual with unique characteristics and an individualised legal entitlement.  For this reason we conduct a thorough case-by-case basis analysis. Consequently a poor credit score is not necessarily a barrier to obtaining funding from us.

Funding and Loan Details

Question: What is the maximum amount of funding that JustFund can provide?

Answer:  We don’t have a maximum funding amount.  Our existing lines of credit have ranged from $5,000 on the low end to $750,000 at the high end. We understand that each situation and each separation is unique and may call for different levels of legal representation.

Question: How does JustFund determine the borrower's entitlement and the amount they can repay?

Answer: JustFund conducts a legal merits assessment of each applicant’s entitlement under the Australian Family Law Act. We then assess an array of factors concerning the applicant’s situation including the stage of their legal case, the amount of funding they need, their net asset position, likely entitlement to separation assets, as well as a variety of other factors.

Question: Is the estimate of a 65% entitlement a standard percentage or is it unique to each borrower?

Answer: Any internal estimate of entitlement that our legal team determines is a result of an individual legal merits assessment and is specific to the borrower's case, based on the information provided to us. We do not request this figure from either the applicant or their legal team.  This is for our internal use only and is generally not shared with others.

Question: How does funding work with JustFund?

Answer: If JustFund approves your request for funding we will establish a line of credit that can be used to pay your legal bills. This amount is then drawn down over time as invoices are received from your legal representatives and approved by you.  This line of credit can be used to pay legal fees as well as disbursements associated with invoices from your law firm.

Question: Is the assessment and administration fee in addition to the interest charged?

Answer: Yes approved borrowers are required to pay an administration and legal assessment fee.  There is no charge for applications we receive and ultimately determine that we are unable to fund.  At JustFund, we devote a considerable amount of time to assessing and considering the unique circumstances of each applicant’s case because we feel it is important to assist and support as many people as we can to achieve a fair and equitable separation settlement.  This fee helps to address the costs of us assessing your specific request for funding. This fee is separate from the interest that is charged.  Interest charges are based on the total amount of funds that a client uses.

Question: How much is the assessment and administration fee?

Answer: The assessment and administration fee depends on the size of the credit line requested (larger lines of credit generally take more time for us to analyse, assess and administer).  Our assessment and administration fee starts at $560 and increases based on the size of the funding required.  (For example, a $25,000 line of credit will attract a $950 assessment charge. We do not charge for any application that we assess and determine that we are unable to fund.

Question: Can the loan from JustFund be used to pay for a client's living expenses, or is it only for legal fees?

Answer: We provide funds to our clients with the express purpose of empowering them to receive legal representation so that they can achieve a fair and equitable separation.  We do, however, understand the financial stresses of separation and the impact that this can have on you, your family, and your ability to pursue your case through to settlement.   If you are struggling with living expenses while conducting your legal case, please talk to one of our Client Success Team members. They will be happy to inform you of options that might be available to help you.

Question: Can JustFund reimburse a client if they have already made payments to the law firm?

Answer: Yes, if a client has already made payments on legal invoices, we may be able to reimburse these expenses.  We usually are also able to help on legal expenses that you have already incurred but are unpaid. Speak to one of our representatives so that we can provide more customised guidance to address these situations.

Question: How much does JustFund cost?

Answer: Helpfully, you will not pay any fees or interest out-of-pocket until you reach your settlement. Any applicable fees and charges are debit to your account and repaid as a lump sum at settlement of your family law property matter.

Interest – interest is calculated on the outstanding balance of your account. This means that interest is charged only on what you actually use from the date of each draw down – you do not pay interest on the unused credit on your account.

Once approved your line of credit is subject to the following:

Assessment & Administration Fee – this covers our costs of conducting a full merits assessment of your application based on your unique circumstances. It depends on the complexity of your matter and size of your line of credit, and typically starts from $560 for credit lines up to $15,000

A caveat fee may also apply depending on your circumstances. We provide a detailed breakdown of fees and charges to all applicants.

Application and Process:

Question: How quickly can the process move once approved?

Answer:  Very quickly.  Once approved, an applicant  will be sent a document to review and eSign online. A borrower’s law firm is required to perform certain actions.  After this is done invoices can be paid immediately. We understand that there are times when an answer is urgently needed. If your situation is time-sensitive, please speak to one of our representatives so that we can do our best to prioritise the processing of your application.

Question: What is the turnaround time for an application?

Answer: Turnaround time from application-to-approval is typically determined by how quickly we receive the information we need from the applicant and their solicitor to holistically assess the request.  If the request is particularly urgent and we have all the information necessary, we can approve in certain situations same-day. Typically,  processing takes about a week after receipt of all the information needed. The responsiveness of the applicant is critical to influencing the speed of decision-making. More complex cases may require additional time and may be referred to our Approval Committee for further and analysis review.  If this occurs, we will keep you updated regarding the progress of an application.

Question: What is required from the lawyer or firm during the application process?

Answer: We aim to keep a lawyer’s time to a minimum on any application. We don’t require a lengthy case summary or any particular advice regarding a client’s prospects from lawyers. However, if information has already been prepared by an applicant’s lawyers it can be very helpful and speed up the approval process. Because JustFund was founded and is operated, by lawyers, the team is able to independently assess a client’s unique situation and request facts directly from the applicant if needed.

Question: How should a client, especially a pensioner, start the application process?

Answer: The client can start the application process online at any time by going to justfund.com.au/apply-now. If an applicant has questions or is less digitally savvy, we recommend they call our friendly Client Success Team on 1300 644 980.   Our team is happy to answer any questions and discuss your options for applying. Reach out to them for a chat.

Question: What is the direct contact for JustFund?

Answer: You can contact us easily by calling us at 1300 644 980 or email our team at enquiries@justfund.com.au. These contact details are also listed at <https://www.justfund.com.au/contact\\](https://www.justfund.com.au/contact).

Question: How can a law firm get approved to refer clients to JustFund?

Answer: To get approved, a law firm should complete the accreditation form available at justfund.com.au/for-lawyers. Importantly, clients and their lawyers can commence an application at any time, including prior to the law firm submitting the accreditation form. Law firms who have questions concerning our accreditation process, or about JustFund in general, should contact our partnership development team at 1300 644 980 or enquiries@justfund.com.au.

Question: What to do if the law firm did not receive the link to the accreditation form?

Answer: The law firm should fill out the accreditation form available at justfund.com.au/for-lawyers. Importantly, clients and their lawyers can commence an application at any time anytime, including prior to the law firm submitting the accreditation form. Law firms who have questions concerning our accreditation process or about JustFund in general should contact our partnership development team at 1300 644 980 or enquiries@justfund.com.au.

Question: How can a client start an application process for JustFund?

Answer: Clients can commence the application process by clicking on the 'Apply Now' button on the JustFund website or by going to justfund.com.au/apply-now. The first step is to fill out a short initial online form. This step also includes a confidentiality agreement to ensure that all communications regarding an applicant’s case are kept confidential and protected.

Question: What happens after the client has filled out the application form?

Answer: After filling out the form, we will confirm with the client that it has been received and we will then reach out to the applicant’s lawyers to obtain information that is helpful to our assessment of the application. As we begin our assessment, we may need to ask the applicant some additional questions.  We typically do this through an online questionnaire and/or by telephone outreach.

Question: How will the client know about their eligibility?

Answer: After the client has filled out the initial application, we will review it and assess the applicant’s eligibility for funding. The applicant will then receive a communication about the outcome. Once we have all the information that we need for our assessment, we typically can advise a decision within 1 - 2 weeks.

Case-specific Issues and Strategies

Question: Can JustFund assist a client who doesn't have a caveatable interest in a real property but whose spouse does?

Answer: Yes, we can often assist in such situations. Our assessment is focused on a client’s underlying legal entitlement and the specifics of their unique situation. An applicant’s name not ‘on title’ of a property is not necessarily a barrier to being approved and funded by us.

Question: What happens when there is a registered mortgage, but the client has no access to documents evidencing it?

Answer: In cases where there is a registered mortgage but the client cannot access documents to evidence it, approval can be more challenging. We understand however that there are situations where this can occur and we will do our best to work with the client and lawyer to try and find a solution.

Question: What actions can the client's lawyer take if they are having difficulty obtaining certain documents?

Answer: An applicant’s lawyer can reach out to us to discuss any difficulties they might be experiencing in obtaining certain documents. We are happy to explore potential solutions together.

Question: What should be done when a client's former partner is not responding or cooperating?

Answer: We understand the frustration and angst when a former partner is being difficult and is failing to respond or co-operate. This is not an uncommon situation and one we have navigated many times before. If this is impacting any aspect of a prospective client’s application or the case more generally, the lawyer concerned should contact us to discuss the situation.

Question: What are the possible next steps if a client's application is at a standstill due to a lack of certain financial documents or information regarding the asset pool?

Answer: We understand these difficulties and can actively work in partnership with you to find solutions.  We will do our best to be helpful (within the limits of our required approval processes) and actively seek to make a decision with the information that is available. However, there are times when this isn’t always possible and a prospective client might need to wait for further information to come to light before we can approve a line of credit.  In situations like this, we encourage you to contact us to review the circumstances of the case.

Question: What happens when the budget for a case is approaching the total of the approved credit limit?

Answer: It’s important for a client and their lawyers to be in touch with us as soon as there is a chance that the approved credit limit will be insufficient to see the settlement through to completion.  The earlier we know about a situation like this, the better.  It’s very important to us and our clients that legal costs are managed as efficiently as possible.  In some cases we may be able to approve an increase in the previously approved credit limit,  but it is also possible that we may not be able to provide more funding beyond a certain point.

Question: Can the client borrow against personal expenses for additional funding?

Answer: We provide funds to our clients with the express purpose of empowering them to receive legal representation so that they can achieve a fair and equitable separation.  We do, however, understand the financial stresses of separation and the impact that this can have on you, your family, and your ability to pursue your case through to settlement.   If you are struggling with personal expenses while conducting your legal case, please talk to one of our Client Success Team members. They will be happy to inform you of options that might be available to help you.

Question: What happens if the case costs more than anticipated?

Answer: If a case costs more than originally anticipated, the client and their solicitor should proactively engage with us to discuss the best path forward. The earlier we know about a situation like this, the better.  It’s very important to us and our clients that legal costs are managed as efficiently as possible.  In some cases we may be able to approve an increase in the previously approved credit limit, but it is also possible that we may not be able to provide more funding beyond a certain point.

Question: What is the recommended course of action when a case is nearing the final stages?

Answer: As the case approaches its final stages, it is important to remain in close communication with our Loan Portfolio team to ensure the terms of any agreements in place between us and your legal representatives are followed. This can ensure a smooth and efficient distribution of proceeds of your settlement. You can reach the Loan Portfolio team by emailing Clients@justfund.com.au or calling 1300 644 980

Question: Is it possible to receive additional funding after a settlement has been reached?

Answer: If you need additional funds after reaching a settlement, please make contact with a member of our Client Success team so that we can best guide you as to the options available.

Question: Can a client discuss their case strategy with JustFund?

Answer: While you can feel free to discuss your case with a member of our Client Success team, we are respectful of the fact that your legal representatives are best placed to guide the progress and strategy of your legal matter.  If you have concerns at any time regarding how your case is being managed, please do reach out to your legal representatives in the first instance.  If you continue to have concerns, by all means discuss them with a member of our team.  Remember though that your lawyers are there to support you to achieve a fair and equitable outcome. We strongly encourage our clients and their lawyers to stay proactive and control legal expenses in order to reach a resolution as effectively and efficiently as possible.

Communication and Problem Resolution

Question: What happens when the loan amount requested by the client cannot be fully covered by JustFund?

Answer: If the requested amount cannot be fully covered, we might agree to fund a lower amount depending on the circumstances of your situation and the law firm who is representing you.

Question: How does JustFund handle issues brought up by the client's lawyer?

Answer: We maintain an active and ongoing dialogue with the legal representatives of all of our funded clients.  If a client's lawyer brings up an issue, we take it seriously and work collaboratively in an attempt to find a solution.

Question: What can a client do when the opposing party is being difficult regarding the release of funds?

Answer:  The client should have their lawyers contact us as soon as possible to discuss the options available.

Question: What can be done if the opposing party is about to sell a property involved in the case?

Answer:  The lawyer representing you should contact us as soon as possible to discuss the options available.

Question: What is the role of the Approval Committee at JustFund?

Answer: The Approval  Committee at JustFund is responsible for ensuring that JustFund’s funding activities are appropriately managed. The Approval Committee meets regularly to evaluate applications and monitor existing clients.

Miscellaneous

Question: What is a caveat, and why is it necessary?

Answer: A caveat is a type of registration put on real property with the relevant land titles office in the state where the property is located.  A caveat prevents the registered owner or owners from dealing with the property. The effect of this is to ensure that neither our client nor their opponent, (such as a former partner), can sell the house or add a new loan to the property without our knowledge and consent. In certain cases, this will be important in underwriting your request for funding

Question: What is the role of the PEXA number in a case?

Answer: A PEXA number, also known as a workspace ID, is a unique identifier for a specific workspace within the PEXA system. It helps in tracking and managing transactions and communications related to a specific case or matter.

Question: How much funding should a client apply for?

Answer: The amount of funding a client should apply for depends on their specific situation, the circumstances of their case and the guidance provided  by their lawyers. Typically, the amount requested should be enough to get the client to a resolution of their case.

Question: Is a deposit or upfront payment required when applying for funding?

Answer: No, applicants do not need to make a deposit or upfront payment when applying for funding with JustFund.  If you are approved for funding, there will be no cash payments from you to us throughout the course of your legal matter.  Any interest or fees owed to us is only paid at the conclusion of your legal matter and when you receive a settlement.

Question: What does it mean when a firm guarantees fees?

Answer: When a firm guarantees fees, it means that the firm agrees to cover any additional legal expenses that arise beyond what has been funded by us. This is typical in cases where the loan amount provided by JustFund does not fully cover the anticipated legal costs.

Question: Do you fund parenting only matters?

Answer: Unfortunately, at this time we cannot fund parenting-only matters. Can can however,  fund a parenting matter if it is connected to, or being run alongside, a property matter.

Question: How do I lodge a complaint? Answer: JustFund provides funding under ASIC Credit (Litigation Funding – Exclusion) Instrument 2020/37 to support clients engaged in family law or estate legal matters. In addition JustFund is authorised by ASIC to provide funding under Australian Credit Licence Number 568341. Before providing funding under our ACL we will provide disclosures including JustFund’s Credit Guide, and our Client Funding Agreement sets out the basis of your funding as well as your rights and obligations.

All our clients can expect to receive a high standard of service when you contact us and we are committed to resolving any complaints or disputes you may have with us quickly and fairly. We aim to resolve all complaints straight away, and will always acknowledge your complaint within one business day. If we need time to resolve the complaint we will keep you updated on progress with the aim of providing a full response within 30 days.

If you have a complaint or require assistance, please contact us:

• Phone: 02 8069 4000
• Email: complaints@justfund.com.au
• Mail: JustFund, Level 13, 85 Castlereagh Street, Sydney NSW 2000

If you are not satisfied with our final response, or if we have not provided a final response within the agreed timeframe, you have the right to refer your complaint to our free external dispute resolution scheme, the Australian Financial Complaints Authority (AFCA):

• Website: www.afca.org.au
• Email: info@afca.org.au
• Phone: 1800 931 678 (free call)
• Mail: GPO Box 3, Melbourne VIC 3001