My Wife has a Car Loan – borrowed 19,000 repaid 14,800 of principle so far.
Term 60 months 37 months paid. 400 a month repayment
I contacted the Lender to see if we could settle the loan.
They want 9,191 to settle (and won't budge on it) this would mean a total repayment 23,991.64
If we continue to pay each month for the remaining 23 months it would be the same about 9,200.
I put this into ChatGPT.
The Interest Rebate Because you are ending the loan early, the lender must give you a reduction in the total interest you would have paid if the loan ran for the full 60 months.
Under the Consumer Credit Act 1995 and associated regulations, lenders must use a specific formula to calculate your "equitable reduction".
Does anyone have any knowledge on this ?
Clearing Car Loan – Lender charging full amount(to end of term)
byu/Specific-Print-2395 inpersonalfinance
Posted by Specific-Print-2395
1 Comment
Are you in the U.S.? The Consumer Credit Act of 1995 is an Irish law.
You need to look at the loan documents. Car loans are contracts and the terms for early payoff are contained within them.