Finance companies have reasonable prepayment penalties.

Prepayment Penalties

Fees charged to borrowers for paying off a loan early, as compensation for the lender's lost interest income.

Decode the roles and contractual terms of banks, financial institutions, and other credit providers in the disbursement of financial support.

Verified Answer

Lyndsey SprattJul 25, 2024

Final Answer :

False

Explanation :

Finance companies often have prepayment penalties that can be high and unreasonable. It is important to check the terms and conditions before signing any agreement.

Learning Objectives

Decode the roles and contractual terms of banks, financial institutions, and other credit providers in the disbursement of financial support.

Finance companies have reasonable prepayment penalties.

Definitions

Learning Objectives

Learning Objectives

Related questions