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Under federal law, the servicer must generally send you a payoff statement within seven business days of your request, subject to a few exceptions. (12 C.F.R. 1026.36.)
Payoff letters generally supply the following information: The date the payoff amount expires. Who to make a check payable to (and if a cashiers check is required) Where to send the money. Charges to include with your payment (outstanding penalties or account closing fees, for example)
A payoff letter is more than just a statement of the payoff amount. A payoff letter also sets forth the conditions upon which the existing lender will terminate the loan documents and release its liens on the borrowers collateral. Thus, the releases (UCCs, etc.)
Essentially, a loan payoff letter is a representation by the existing lender regarding the outstanding amounts owed on the loan, including principal, interest, fees and other charges required to pay the loan in full and release any collateral.
An auto loan payoff letter is just a way to prove that you have paid in full for a car. If you are selling your vehicle, often the buyer will ask to see the letter as proof that the car is owned free and clear, and does not have any liens against it.
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Essentially, a loan payoff letter is a representation by the existing lender regarding the outstanding amounts owed on the loan, including principal, interest, fees and other charges required to pay the loan in full and release any collateral.
You need an official payoff statement from the servicer to ensure you pay the correct amount. Under federal law, the servicer must generally send you a payoff statement within seven business days of your request, subject to a few exceptions.

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