Early Repayment Charge (ERC)
An early repayment charge (ERC) is a fee some lenders apply if you pay off your loan early. Lenders do not include this fee in the comparison rate as they don’t know in advance if you’ll do this. ERCs often differ significantly between lenders, while some lenders only charge an ERC if you repay your loan within a specific period from the start of your loan.
You may also see ERCs called termination fees, discharge fees, or early repayment fees.