does the loan have a prepayment penalty, and on what basis?
I’m glad to see this section here. I’ll be even gladder if and when I see evidence the answers mean anything in the sense of legal penalties for lying. Lying about prepayment penalties has been rampant for a long time. Lying about prepayment penalties is a good way to make an absolutely awful loan look pretty good. Lying about prepayment penalties gets someone to sign up with the loan provider who lies because of this. And when you find out at the end of the loan process, when they present the loan documents, that they were lying (if you even notice, which many are expert at making sure you don’t!), you may not have any good alternatives to signing those documents anyway. Section VI basically tells you the lender cannot require credit life insurance or disability insurance. Many lenders would if they could. Not that disability insurance is a bad idea – quite the opposite in fact (I’m of two minds on credit life insurance, and this is not the place for that essay). Section VII requires
