Loan terms can be tricky and unfair sometimes.

This man had a loan with an early payoff penalty but no limit on how much extra he could pay.

He got some helpful advice from the person who helped him set up the loan, but when it came time to put that advice into action, he had to speak to a supervisor.

Read the full story below to find out what happened.

Loan payoff – early payoff penalty avoidance

I took a loan out some years ago.

It had an early payoff penalty of a percentage of the payoff but no penalty for paying more than the regular payment.

This man got some helpful advice on how he could pay off the loan without much penalty.

I didn’t like that provision, but the guy who helped me with the loan gave some advice.

He said just to pay it down to one dollar, then pay it off. The penalty world be less than a dollar.

The staff did not understand what he wanted to do.

So, I got some money after a while and paid.

I told them I want to pay the loan down to $1, then pay the loan off.

The guy worked up the papers as if I’m paying it all off and he included the penalty.

I explained again what I want to do.

He explained the penalty again.

They went back and forth, not resolving the deal.

I said, “I’ll be happy to pay the penalty on the $1.”

He said, “I can’t do that.”

There’s a penalty of (much higher amount).

We go around and around, and they pretend not to understand.

A supervisor came out to help resolve the issue.

Finally, a supervisor came.

He totally understood and basically stopped with the games.

I said not to worry, I’d never have taken the loan without the reduced penalty payoff option.

So, they got more interest out of me than if I declined the loan in the beginning.

I pay the fraction of a dollar penalty, and loan was satisfied.

It’s nice that the original guy he talked to gave him helpful advice.

Let’s read the reactions of other people on Reddit.

This person shares what they would have done.

While this person shares their personal thoughts.

Early payoff penalties should be illegal, says this person.

Finally, a Credit Union member speaks up.

When securing a loan, it always pays to read the fine print.

If you liked this post, check out this story about an employee who got revenge on a co-worker who kept grading their work suspiciously low.