This matter is discussed with regards to problems #13 and #14, above. Conditions relating to prepayment charges have now been included in to the draft legislation connected as Appendix no. 1; see area 3 and part 7 of the proposed legislation.
Problem #22: needing that “unpaid balance” figures reflect extra funds needed as prepayment charges
Because many customers have actually told OCCR that they didn’t understand they certainly were susceptible to a prepayment penalty until they attempted to cover down their loan early, this proposition might have necessary that each and every time the lender notified the debtor regarding the unpaid balance on the loan (for instance, upon demand, or with every month-to-month declaration, or at year-end), the financial institution will be expected to include into that stability the prepayment penalty, to deliver an exact picture of the specific buck quantity essential to repay the mortgage. Continue reading “Issue #21: Effective notice of prepayment charges”