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Issue #21: Effective notice of prepayment penalties

Issue #21: Effective notice of prepayment penalties

This problem is talked about with regards to problems #13 and #14, above. Conditions relating to prepayment charges have now been integrated in to the draft legislation connected as Appendix no. 1; see part 3 and part 7 of this proposed legislation.

Problem #22: needing that “unpaid balance” figures reflect extra funds required as prepayment penalties

Because a lot of customers have actually told OCCR which they didn’t understand these were at the mercy of a prepayment penalty until they attempted to cover their loan off early, this proposition might have necessary that every time the lending company notified the debtor associated with the unpaid stability on the loan (for instance, upon demand, or with every monthly declaration, or at year-end), the lending company could be necessary to include into that stability the prepayment penalty, to deliver a precise image of the particular buck quantity essential to pay back the loan.