What are payments in advance? How are they different from prepayments?
Payments in advance are payments made against future installments. They are applied to your account as if each were received on its due date. Payments in advance must be made in multiples of your normal monthly installment amount and must be accompanied by a letter from you specifying which payments are being made. If we do not receive specific instructions in writing from you to apply your payments as payments in advance, they will be treated as prepayments, and another payment will be due the next month.
