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In MB, what should I know about prepayment penalty for car loans?
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Car Loan Glossary • mb

In MB, what should I know about prepayment penalty for car loans?

In Manitoba, understanding prepayment penalties for car loans is crucial and primarily governed by your specific loan agreement, within the framework of the provincial Consumer Protection Act. Most car loans are 'closed' loans, meaning they have a fixed term and interest rate, and while you generally have the right to prepay these loans in full or in part, lenders can impose a penalty. This penalty, if applicable, must be clearly disclosed in your original contract and is subject to the provisions of Manitoba's Consumer Protection Act, which aims to protect consumers from excessive charges. 'Open' loans, which are less common for vehicle financing, typically allow prepayments without any penalty.

Why this matters: Especially with fluctuating interest rates and economic considerations potentially

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Related Topics: mb province topic

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