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The payoff fee is a one-time fee charged when a Customer repays the loan in full before the scheduled end date. This fee can be a fixed amount or a percentage of the remaining balance and compensates the Lender for the loss of expected interest. It will be applied along with the sum of all fees that are assigned an Event Type 'On payoff' in the Credit Product.

For example, if a Customer decides to pay off the remaining $5,000 balance of a loan early and the payoff fee is 2%, the Customer would need to pay an additional $100.

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