Can a creditor charge a late fee for a credit card payment?

In California, a creditor can charge a late fee for a credit card payment. There are two types of late fees: those associated with a payment that was received more than 15 days late, and those associated with a payment that was received more than 30 days late. The amount of the fee is determined by the creditor and is regulated by the California Department of Business Oversight. Generally, the late fee can be no more than 1/2 of 1% of the payment amount. For example, if the payment amount was $100, the maximum late fee that could be charged would be $.50. The creditor must also provide written disclosure of the late fee to the cardholder. In addition, the creditor may report a payment as late to the credit reporting agencies if it is more than 30 days late. If a payment is reported as late, it may have an impact on the cardholders credit score. In conclusion, a creditor can charge a late fee for a credit card payment in California. However, the amount of the fee is regulated and it must be disclosed in writing to cardholders. Additionally, a payment that is more than 30 days late could be reported to the credit reporting agencies, which could have an impact on the cardholders credit score.

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Can a creditor charge a late fee for a credit card payment?

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