If penalties for car credit advanced repayment are not stipulated in the agreement the borrower may completely pay it off in six months after opening. In order to do it is just necessary to report to the bank about your intention, to specify an account balance, then to pay money, to obtain receipts and to forget about the credit.
However, it may happen that in two years the collector will call to the client and demand to repay the debt. It is reality not a fiction. It’s quite simple. The bank transferred an early payment not to the credit customer account but on the deposit having taken this money as periodic payments to the account. At that, bank didn’t forget to write off regular payments of car loan from this account, naturally, with an interest rate. Money ended, and on a remaining balance penalties and penalty fee started to be charged.
How can it happen? After all, debt pay off sum was approved with the bank clerk. An ordinary mathematic mechanism starts working here. Amount of early payment which is required, with one-time interest charge on a loan remaining balance was really voiced to the client. By the way, just that is why such method of credits repayment is very profitable because rates are charged only once but not every month. The mistake is most likely in that the amount was voiced to the borrower on Friday, and he carried it to the bank on Monday, and within two days the rate has slightly changed, and this amount was not enough for debt repayment. Therefore, by all means specify in the bank whether your payment has been registered, and require the statement about the paid off loan.