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

In Florida, creditors may charge a late fee for a credit card payment that is not paid on time. The law allows creditors to assess a late fee of up to $25 for the first late payment and up to $35 for additional late payments. Late fees can be charged for both minimum and full payments. Additionally, the law gives creditors the right to charge a “returned payment fee” of up to $25 if a payment is returned. The late fees and return payment fees are governed by the Florida Unfair and Deceptive Practices Act. Therefore, the late fees must be reasonable and not excessive in order to be legally enforceable. If a customer believes the fees are too high or are being levied unfairly, they may be able to challenge the fee in court. It’s important to note that customers may be able to work with their creditors to reduce or waive late fees. It’s always a good idea to call your creditor and explain the situation to see if something can be worked out. Additionally, customers should be aware that late payment fees will affect their credit score, so it’s important to pay on time if possible.

Related FAQs

How do I choose the best credit card for my needs?
What is a secured credit card?
What is a penalty APR?
What is a cash-back credit card?
What are the benefits of using a credit card?
What is a default on a credit card?
What are the benefits of having a credit card?
What is a chargeback?
What is the Fair Debt Collection Practices Act?
What is the minimum credit score required to qualify for a credit card?

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

Related FAQs

Related Blog Posts