Trying to refinance Truck.. pre payment penalty?

Hello all,

I am trying to refinance my truck (my credit is much better, 7 months payments with some extra payments)

Basically got pre approved and ready to continue so asked my current loan company for my payoff amount. Well they sent it, but in it they Included a 2500 dollar early payoff penalty fee. The problem I have with that, is, nowhere in my equipment finance agreement "EFA" does it say I have to pay any type of early pay off penalty. It says this EFA is Irrrevocable, can't be changed etc but no where does it say there is an early payoff penalty but also doesn't say anywhere there isn't? It's a 1 page document kind of rudimentary to be honest. I have told them I do not see verbiage of how they calculated that, or even that I agreed to pay it and am awaiting a response. They are basically email only I can never get anyone on the horn.. what do you guys think? Can they just stick me with that 2500 fee like that or what's my options?

Thanks in advance

 

Actually looking over it again and googling, it looks like it is rule of 78? Still not sure I understand how that works though the more I read on it. Make Brain hurty

 

Over the length of the loan yeah because I calculated it out to like over 40% or something. 48 month loan, originally 54k borrowed, my payment is 1995 a month. Yeah..

 

Seems possible but on the payoff quote they have it listed under the balance as "early termination fee"
If it was just still interest due or something wouldn't they call It that?

 

Yes this is why I'm trying to refinance lol basically got in knowing I'm being burned but it's cus I went from company to 1st time 1st truck owner op, with "decent" credit. Not great but like maybe under 650. Ate the high monthly payment, ran hard, Paid off some debt and fixed my credit