If you pay off the loan agreement early, know that you are entitled to a refund, which mainly relates to certain expenses.
if you want Extinguish before deadline Transferring a fifth of your pension or salary, a personal loan or any other type of financing, there are some important things you should consider.
In addition to receiving compensation for one-time recurring expenses, which are related to the term of the loan, you are also entitled to reimbursement for expenses that have no connection With the duration of the contract.
These are mediation, investigation or practice management costs, i.e. amounts that have been paid and are therefore owed to you. Let’s see how to calculate it and how you should start ordering it.
Have you signed a loan contract and want to repay it long before its natural expiration?
The relevant law stipulates that participating in the loan or transferring one-fifth of the pension or salary, or either of them Another type of financingcan be turned off early when you see fit.
If repayment is made early, the total cost of the loan, which is calculated, should be reduced Taking into account the benefits and costs payable For the remainder of the contract.
Early loan repayment: what happens?
In other words, when you request repayment of an advance loan (salary-secured loan or other loan), you must pay “Early settlement fees“, which arrives up to 1% of the remaining amount due or, in the last year of the loan, up to 0.5% of the remaining amount.
Alternatively, if the debt that remains to be paid is Less than 10,000 eurosYou are not required to pay commission. But what is the advantage?
Simply put: you will not be required to pay monthly expenses and interest for the period following the date of their occurrence Early termination.
If you have paid nothing at the beginning of the loan One-time expensesYou will be reimbursed for part of these expenses.
Reimbursable investigation and administration costs
Before 2020, only recurring expenses were reimbursed, i.e. expenses related to the term of the loan, such as related to insuranceEspecially if this amount is paid in one lump sum.
In this case, the client received a refund of the related fees The period following payment.
And then with Lextor ruled,Payment also includes expenses related to terminating the contract, but outside the term.
We are talking about expenses paid during Signing of the contractSuch as practice management fees, initial investigation fees, mediation fees, and activation fees.
These are expenses that fall within the amounts paid, and are therefore subject to recovery in the event that this occurs Early repayment of the loan.
Taxes are worth a separate discussion because if the loan is paid off early, it cannot be repaid.
Calculate your refund amount
certainly, Payment account The process due is not within everyone’s reach. This is because accounting for non-recurring expenses means crossing the consumption schedule curve and the interest curve.
So Time standard It should be excluded from the count. In this case, a calculator is an excellent ally to understand the refund amount.
The above cases include loans that have already been repaid such as salary-backed loans, personal loans, or loans The ones that have been completedthrough which you can claim the right to claim a higher refund.
The possibility becomes tangible only for everyone Contracts have expired Starting from date On September 19, 2010without prejudice to the limits imposed by it Prescription for ten years. The advice is to contact a professional.
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