What happens if I overpay my personal loan at payoff?

How overpayments happen: Borrowers often overpay at payoff because they estimate the remaining balance without accounting for daily accrued interest. Interest accrues daily between your last payment date and the payoff date. If you send last month's payment amount without requesting a payoff quote, you may owe an additional $20-$100 in accrued interest.

Getting the exact payoff amount: Always request a '10-day payoff quote' from your lender before sending final payment. This gives a specific dollar amount that pays off the loan in full if received within 10 days. The quote includes principal remaining plus interest accrued through the payoff date.

What happens if you overpay: Federal consumer protection regulations require lenders to refund overpayments on closed accounts. The lender closes the account within a few business days of receiving full payment, calculates the overpayment, and issues a refund check or ACH within 30 days. Some lenders process this faster.

If the refund is delayed: Contact customer service with your payment confirmation. If 30 days pass without a refund, file a complaint with the CFPB (consumerfinance.gov/complaint).

Getting loan closure confirmation: After payoff, request a letter confirming the loan is paid in full and the account is closed. This is important if you ever need to prove the obligation was satisfied for a mortgage underwriter, future lender, or legal matter.