Paying a NEO invoice over time with Affirm or Klarna

Legal problems rarely arrive at a time that suits your budget, and the cost of help can be the reason people wait. At NEO Legal Services Professional Corporation, a licensed paralegal firm in Pickering, we would rather talk about cost openly than have it put you off getting advice, so we offer more than one way to pay. One of them: when you have an invoice from us for work we have already done, you may be able to pay it over time with Affirm or Klarna at checkout. Each provider's disclosure is in the box below.

This guide explains how paying over time works at NEO, which invoices qualify and why retainers never do, what stays the same when you use it, and the other ways to manage the cost of a legal matter, so you can choose what suits you.

Why cost can hold people back

Legal matters run on deadlines. There are limitation periods for starting a claim, short time limits for answering one, and fixed dates for hearings and appeals. Worry about cost can lead people to put off getting advice until a deadline is close, and by then they may have fewer options.

We think access to justice works better when cost is talked about openly from the start. That is why we explain our fees before you hire us, set them out in a written retainer, and offer more than one way to pay. Paying an invoice over time is one of those ways. It is optional, it is not right for everyone, and it comes after the work, not before it. It does not change any deadline in your matter.

How paying over time works

1. We mark your invoice as for work already done. Only an invoice that bills work we have already done for you under your signed retainer can be paid over time, and only once we have sent it to you. Your invoice shows the amount, with HST.
2. You go to checkout. Use the payment link in the invoice we email you, or our Pay page: choose "Legal services invoice" and enter your invoice number and the email address we have on file for you.
3. You choose Affirm or Klarna, if it is offered. The secure checkout page, run by our payment processor, Stripe, lists the options that can be offered for that payment. If neither appears, paying over time isn't available for that payment, and you can still pay by card, Apple Pay or Google Pay.
4. You apply on your own device. The provider you chose runs its own eligibility check. Our staff cannot apply for you or fill in the application, and we do not give advice about the loan.
5. You decide. If you are approved, the provider shows you the options it can offer you, with their terms and payment schedule, before you accept. You can say no and pay another way.
6. The provider pays us, and you repay the provider. If you accept, the provider pays your invoice through Stripe, and you repay the provider under your agreement with it.

Which invoices qualify, and why retainers never do

When you pay money before the work is done, such as a retainer deposit or an instalment due when you sign, that money is still yours until we earn it. The Law Society of Ontario's By-Law 9 requires us to keep it in a trust account, separate from the firm's own money, and to take it out only for permitted reasons, such as paying an invoice we have delivered to you. See By-Law 9: how NEO handles money held in trust.

Payments through Affirm and Klarna reach us through Stripe, which pays into the firm's general account, not into trust. So they can only be used for fees we have already earned and billed.

Can qualify:

• Invoices for work we have already done under your retainer, marked that way by us and sent to you
• With Affirm: a payment of CA$50 to CA$30,000, HST included
• With Klarna's Pay in 4: a payment of up to CA$1,500, HST included
• Individuals in Canada with a Canadian billing address (a provider may not be available in every province or territory)

Never qualifies:

• Retainers and deposits
• Instalments due before the work they pay for is done, such as a payment due when you sign
• Memberships
• Court, tribunal and government fees, fines and bail, including any we pay on your behalf
• Fees of a lawyer we refer you to, which you pay to the lawyer under the lawyer's own retainer
• Payments by a business or corporation, since both providers lend to individuals only

What stays the same

• The same price. You pay the same price however you pay. Choosing Affirm or Klarna never raises the amount on your invoice: what we pay to offer them is our own cost of doing business.
• Member discounts. If you are a member, the 20% discount on our fixed-fee services applies whichever way you pay.
• Your retainer and our duties. How you pay has no effect on your retainer, on how we handle your matter, or on our professional duties to you, including confidentiality.
• Whether we act for you. Applying with Affirm or Klarna has nothing to do with whether we take on your matter. Paying over time comes after we have agreed to act for you and done the work, and being approved or declined by a provider changes nothing about your retainer.
• Your privacy. The provider receives what it needs to process the payment, such as your name, contact details, billing address, the amount and the invoice number. Where paying over time is offered, checkout describes the payment only as legal services from our firm, with the invoice number, and does not say what your matter is about. What you give the provider when you apply is covered by its own privacy policy.
• Refunds. If we refund all or part of a payment you made with Affirm or Klarna, the refund goes back through that provider, which applies it under your agreement with it. It is never given as store credit or as credit for future work.

Choosing between Affirm and Klarna

Each is a separate company, and the one you choose is the lender.

Affirm

• Lender: Affirm Canada Holdings Ltd.
• Can be offered for: payments of CA$50 to CA$30,000, HST included
• Rates and terms: see Affirm's disclosure at the top of this article
• Questions about an Affirm loan: Affirm's Canadian help centre

Klarna

• Lender: Klarna Canada Limited
• Can be offered for: Pay in 4, for payments of up to CA$1,500, HST included
• Payment terms: see Klarna's disclosure at the top of this article
• Questions about a Klarna plan: Klarna's Canadian customer service

Above CA$1,500, only Affirm can be offered. Where both ranges fit, checkout may list both, and the choice is yours. Which options you see, and on what terms, depend on the amount and the provider's own check. Before you accept any option, compare the total you will repay, the payment schedule, and what happens if a payment is late or missed. We cannot recommend one provider over the other.

Borrowing is your decision

Paying over time is optional, and borrowing can cost more than paying at once. Take the time you need to read the provider's terms. We cannot advise you on whether a loan is right for you, and questions about an application or a loan go to the provider. If you are finding it hard to pay an invoice, please talk to us before it is due.

There are other ways to manage the cost of a legal matter, and one of them may suit you better:

• An instalment plan in your retainer. For many fixed-fee services, the fee can be split into payments: half on signing and half on completion, monthly payments, or payments at agreed stages of the matter. Whether a plan is possible depends on the matter, and it is written into your retainer before work starts. Each instalment is sent to you as an invoice. See payment options.
• A membership. Our optional monthly or yearly plans include four 30-minute consultations a month with a licensed paralegal and 20% off our fixed-fee services. Monthly plans run for at least three months, and you do not need a membership to hire us. See plans and prices.
• Legal Aid Ontario. If you have a low income, Legal Aid Ontario may be able to help with some criminal, family, immigration and other matters. See Legal Aid in Ontario: Who Qualifies.
• Community legal clinics. Clinics funded mainly by Legal Aid Ontario help people with a low income who qualify, with issues such as housing, income support and employment. See Community Legal Clinics in Ontario.
• The Law Society Referral Service. The Law Society of Ontario can give you the name of a lawyer or licensed paralegal for a first consultation of up to 30 minutes, at no charge.
• Court fee waivers. If court fees are the obstacle, people with a low income may be able to have many of them waived. See Can't Afford Court Fees? Ontario's Fee Waiver.

Common questions

Who lends the money?

Affirm Canada Holdings Ltd. ("Affirm") or Klarna Canada Limited ("Klarna"), whichever you choose. We are not a lender and we make no credit decisions. Any loan or payment plan is a separate agreement between you and the provider.

Is approval guaranteed?

No. The provider checks each application and decides whether to approve it and which options to offer. If you are not approved, you can still pay your invoice another way.

What does paying over time cost?

That depends on the option the provider offers you, and the provider shows you its terms before you accept. Affirm's range of rates in Canada is in its disclosure at the top of this article, and Klarna's Canadian payment terms are at klarna.com/ca/paylaterin4. Whatever you choose, you pay us the same price.

Will I need to pay something at the start?

Possibly. The provider decides, based on the amount and its own check: Affirm may ask for a down payment, and Klarna may ask some customers for a higher first payment. Either one tells you before you accept.

Does applying affect my credit?

Each provider runs its own eligibility check and explains it when you apply. If you want to know whether applying will appear on your credit file, ask the provider before you apply.

Can I use Affirm or Klarna for my retainer, so work can start sooner?

No. Money for work not yet done must go to our trust account, and these payments cannot. If paying a retainer all at once is difficult, ask us whether an instalment plan can be written into your retainer, or about the other options above.

What if I don't see Affirm or Klarna at checkout?

Then paying over time isn't available for that payment: the invoice may not qualify, or the amount may be outside a provider's range. You can pay by card, Apple Pay or Google Pay, by Interac e-Transfer or by cheque, or call us to talk it through.

Who do I contact about my loan?

The provider: Affirm's Canadian help centre or Klarna's Canadian customer service. For questions about your invoice or your matter, contact us.

Sources

• Affirm Canada
• Affirm Canada help centre
• Klarna Canada: Pay in 4
• Klarna Canada: Canadian payment terms
• Stripe: Affirm payments
• Stripe: Klarna payments
• Law Society of Ontario: By-Law 9
• Legal Aid Ontario
• Legal Aid Ontario: community legal clinics
• Law Society of Ontario: Law Society Referral Service

Read next: Paying NEO by Visa, Mastercard, Apple Pay or Google Pay

Photos from Pexels: Pavel Danilyuk.

This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.

This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.