Late Payment Fees

Late Payment Fees. No interest or additional fee shall be charged on any late fees or other default-related fees allowed by MCAA. 1. A late fee of ten percent (10%) of the past-due amount may be charged and collected by a Licensee if both of the following conditions are met: a. The account holder fails to pay a monthly payment “within ten (10) business days after the due date.” And b. Such fees are “clearly disclosed in the credit availability agreement.” 2. Late fees shall be tracked as a separate line item and shall not be added to or combined with the principal balance to incur additional fees. The statutory limit of a maximum 10% late fee penalty on the amount due/owing for a delinquent monthly payment is sufficient to compensate for any late payment without the incurrence of additional fee/interest on a late fee itself. 3. Late fees shall not be deducted from any regular payment for the purpose of creating an additional late fee. 4. The addition/inclusion of any previous late fee to increase the Outstanding Principal Balance is prohibited. 5. A late fee may be charged and collected only once on any scheduled payment, regardless of the period during which the scheduled payment remains in default. 6. Bi-Weekly late fees: Late fees may only be charged after 10 business days have elapsed following the monthly due date. No more than 10% of the total monthly payment shall be collected as a result of late payment due during any month. Example: A Licensee contracting for bi-weekly payments in lieu of one monthly payment, may only charge a 10% late fee on a single bi-weekly payment that is more than 10 business days late, thus ensuring that if both bi-weekly payments are more than 10 days late, the account holder incurs total late fees not greater than 10% of the total payment due in any given Month.