Defined term
Solar loan prepayment penalty
CFPB defines a prepayment penalty as a fee that a lender may charge when a borrower pays all or part of a loan early.
economics · Concept code GS-CONCEPT-147 · Last verified August 28, 2026
Evidence through 2026-04-08 · 0 sources have no source-event date
Content modified 2026-08-28
Definition and decision context
Definition
CFPB defines a prepayment penalty as a fee that a lender may charge when a borrower pays all or part of a loan early.
Verified August 28, 2026
Why it matters
For covered closed-end credit, Regulation Z requires disclosure when a creditor may impose a prepayment penalty.
Verified August 28, 2026
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Learning navigation
Primary topic: Finance
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Primary sources
- Consumer Financial Protection Bureau: CFPB Financial terms glossary — Principal, Prepayment, Prepayment penalty, Secured loans, and Collateral
Revision CFPB glossary modified January 23, 2025 · Source event as of January 23, 2025 · Ontology accessed August 28, 2026 · Ontology verified August 28, 2026
- Consumer Financial Protection Bureau: 12 CFR § 1026.18(b), (g), and (k) — Amount financed, Payment schedule, and Demand feature
Revision 12 CFR § 1026.18 version 2026-04-08 · Source event as of April 8, 2026 · Ontology accessed August 28, 2026 · Ontology verified August 28, 2026