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Rebate of Payment Protect fee on early repayments
Rebate of Payment Protect fee on early repayments

What happens to the Payment Protect fee if I repay my loan in full early?

Monisha Begum avatar
Written by Monisha Begum
Updated over 2 years ago

If you repay your loan in full before the end of your three, five or seven-year term, without having any payments waived, the Payment Protect fee is rebated pro rata using a formula prescribed by the Credit Contracts and Consumer Finance Act (CCCFA):

Payment Protect refund = (p × s × ( s + 1)) ÷ ( t × (t + 1))

Where:

  • "p" is the Payment Protect fee amount,

  • "s" is the number of whole months in the unexpired portion of the period for which the plan applied,

  • and  "t" is the number of whole months for which the plan applied.

Please note: Payment Protect is only available to New Zealand customers. 

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