Section 76 Rebate on Prepayment

• Library: Motor Vehicle 2011

In virtually all consumer credit contracts, the interest or time price differential is precomputed and added to the amount financed to arrive at the total amount payable over the term of the agreement. When the payments are interrupted by the borrower’s either prepaying the contract before the end of the term or defaulting in payments so that the full balance is accelerated, the borrower will be entitled to a rebate of the unearned portion of the time differential, which is computed based on the...