Default Charges or Late Charges

Default Charges or Late Charges. A default charge shall not be assessed after the date of loss for any loan paid from the proceeds of insurance coverage. Default charges shall not be deducted from any regular payment for the purpose of creating an additional default charge. Either of the following methods may be used to assess a default charge and such charge must be disclosed on the written contract: 1. Five Percent (5%) Default Charge: any installment that is ten (10) days or more in default not to exceed the lesser of Five Dollars ($5.00) or five percent (5%) of the portion of the payment in default. Miss. Code Ann. §75-17-15 2. Four Percent (4%) Default Charge: any installment that is more than fifteen (15) days in default not to exceed the greater of Five Dollars ($5.00) or four percent (4%) of the portion of the payment in default. This charge shall not exceed Fifty Dollars ($50.00) unless the amount of the loan exceeds One Hundred Thousand Dollars ($100,000.00) and the term of the loan exceeds five (5) years. Miss. Code Ann. §75-17-27