This summary is intended to help you understand the key features of a Compo Pronto advance before you apply. It is not a substitute for the full loan agreement, which you will be provided with before any funds are advanced to you and which you should read carefully.
We strongly recommend that you obtain independent advice from your solicitor before signing a loan agreement.
1. What you are agreeing to
If your application is approved and you sign a Compo Pronto loan agreement, you are entering into a litigation funding arrangement under which:
- We (Mayfair Securities Pty Limited, trading as Compo Pronto) advance funds to you.
- You agree to repay those funds, plus interest and a one-time processing fee, from the proceeds of your personal injury settlement when it is received.
- Your solicitor signs a separate Irrevocable Repayment Authority directing them to pay us, from your settlement funds in their trust account, before any balance is paid to you.
- If your claim does not result in any settlement or judgment in your favour, you do not repay the advance.
This is a litigation funding arrangement, not a regulated consumer credit product. Please read the regulatory disclosure in our Terms of Use.
2. Who can apply
You may be eligible if:
- You are 18 years of age or older.
- You are an Australian citizen, permanent resident, or valid visa holder at the time of your accident.
- You have an active personal injury claim in one of our supported categories (motor vehicle, workplace, slip and fall / public liability, medical negligence).
- You were not at fault, or only partially at fault, for the accident.
- You were gainfully employed at the time of the accident.
- You are represented by a personal injury solicitor.
- Liability has been admitted by the at-fault party's insurer, or is in your solicitor's view likely to be admitted.
Approval is at our discretion and not all applicants who meet these criteria will be approved. We assess each application on its merits.
3. How much you can borrow
| Initial advance | $1,000. This is your first drawdown if approved. |
| Further advances | Subject to the progress of your claim, additional drawdowns may be available as your claim becomes more certain. Each further drawdown is assessed at the time you ask. |
| Maximum total advance | The total amount advanced to you under all drawdowns will not exceed 50% of your expected in-hand settlement (the amount your solicitor estimates you'll receive after legal fees and any other prior deductions). |
4. What it costs
| Interest | A monthly interest rate applies. The exact rate is disclosed in writing in your loan agreement before you sign. Interest is non-compounding — interest does not accrue on previously-accrued interest. |
| Processing fee | A one-time establishment fee is charged when your loan is set up. The exact amount is disclosed in writing in your loan agreement before you sign. |
| Upfront cost to you | None. You pay nothing to apply, nothing to receive your advance, and nothing while your claim is being pursued. |
| Ongoing repayments | None until your claim settles. |
| Default interest or late fees | None — because no repayment is due until settlement. |
Before you sign a loan agreement, you will receive a written quote setting out: the principal amount of the advance, the monthly interest rate, the one-time processing fee, and a worked example of what you would repay at settlement under a reasonable settlement timing assumption.
5. When and how you repay
You repay your advance when your claim settles. The mechanics:
- Your settlement money is paid into your solicitor's trust account, as is normal practice.
- Your solicitor, acting on the Irrevocable Repayment Authority, pays us the amount owing under your loan agreement — the principal, accrued interest, and the processing fee.
- Your solicitor then pays the balance to you.
You make no payments to us from your own bank account at any time. The whole repayment happens at settlement, through your solicitor.
If your claim settles in instalments rather than as a single lump sum, the loan agreement sets out how repayment is allocated across instalments.
6. What happens if your claim doesn't settle
If your personal injury claim ultimately does not result in any settlement or judgment in your favour — for example, because the claim is discontinued, dismissed, or fails — you are not required to repay the loan. We bear that risk.
This is a core feature of how the product is structured. Our return only comes from successful settlements, which is why we assess each application carefully before approving an advance.
7. If you change solicitors
You're free to change solicitors at any time. If you do, you must notify us promptly. We will work with your new solicitor to acknowledge the existing Irrevocable Repayment Authority — or, if needed, to put a replacement authority in place — so the repayment mechanism continues to operate consistently with your loan agreement.
8. Termination and default events
Because there are no scheduled repayments before settlement, there are no "missed payment" defaults. However, the loan agreement provides for events of default that include:
- providing materially false or misleading information in your application
- settling your claim without your solicitor giving effect to the Irrevocable Repayment Authority
- discharging your solicitor and instructing them not to act on the authority without arranging an equivalent undertaking from a replacement solicitor
- insolvency or other circumstances set out in the loan agreement
The consequences of a default are set out in full in the loan agreement. They do not include personal pursuit of you for amounts beyond the proceeds of your claim.
9. Your consumer protections
Because Compo Pronto's product is not regulated under the National Credit Code, some statutory protections that apply to regulated credit products do not apply to your advance. However:
- The Australian Consumer Law (administered by the ACCC) continues to apply to our conduct.
- We are subject to ASIC's general conduct obligations applicable to litigation funders.
- We are bound by the Privacy Act 1988 (Cth) and the Australian Privacy Principles in handling your personal information.
- Your solicitor owes you continuing professional duties throughout the life of your claim, including in relation to the advance and its repayment.
10. Cooling-off and cancellation
You will have a clearly stated period — set out in your loan agreement — during which you may cancel the loan after signing, provided you have not yet drawn down any funds. If you have drawn down funds, repayment of those funds (without interest) within the cooling-off period will end the agreement.
After the cooling-off period, you may still repay the advance early at any time. The loan agreement explains how an early repayment is calculated.
11. Where to get help
Before you sign any loan agreement with us, we recommend that you:
- read the loan agreement and this summary in full
- ask your solicitor to explain anything you don't understand
- consider whether independent financial advice is appropriate in your circumstances
- contact us with any questions: hello@compopronto.com.au
If you have a complaint about a Compo Pronto product or your experience, contact complaints@compopronto.com.au. If the matter relates to handling of your personal information, contact our Privacy Officer at privacy@compopronto.com.au.
This Loan Terms Summary is provided in good faith to help you understand our product. It is not legal advice and is not a substitute for reading the full loan agreement. For specific legal advice relating to your circumstances, please consult your solicitor.