Hi All,
I have looked into refinancing to a cheaper loan. I'm currently on a 7.42% variable rate since Dec 2008 (yes it's about 1% more than it should be!).
The "Early Repayment Fees" would be $6,656.00 = to 1.3% of original loan amount.
I understand break costs for Fixed Rate loans, but this is variable.
Under s 72(4) of the Uniform Consumer Credit Code (UCCC) it states,
"A fee or charge payable on early termination of the contract or a
prepayment of an amount under the credit contract is unconscionable
if and only if it appears to the Court that it exceeds a reasonable
estimate of the credit provider’s loss arising from the early termination
or prepayment, including the credit provider’s average reasonable
administrative costs in respect of such a termination or prepayment.
Has anyone attempted to fight these charges before on the grounds that they exceed reasonable estimate of the credit provider's loss ??
Thanks in advance....
Dave
I have looked into refinancing to a cheaper loan. I'm currently on a 7.42% variable rate since Dec 2008 (yes it's about 1% more than it should be!).
The "Early Repayment Fees" would be $6,656.00 = to 1.3% of original loan amount.
I understand break costs for Fixed Rate loans, but this is variable.
Under s 72(4) of the Uniform Consumer Credit Code (UCCC) it states,
"A fee or charge payable on early termination of the contract or a
prepayment of an amount under the credit contract is unconscionable
if and only if it appears to the Court that it exceeds a reasonable
estimate of the credit provider’s loss arising from the early termination
or prepayment, including the credit provider’s average reasonable
administrative costs in respect of such a termination or prepayment.
Has anyone attempted to fight these charges before on the grounds that they exceed reasonable estimate of the credit provider's loss ??
Thanks in advance....
Dave