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

In Georgia, creditors can charge a late fee for a credit card payment. This is in accordance with the Fair Credit Billing Act, which states that creditors can impose a fee for any payment received after the due date. The fee is typically based on a percentage of the amount owed and the amount of time that the payment is past due. The Act does state, however, that creditors must provide the consumer with a written notice of the late payment fee before it can be charged. This notice must be provided at least twenty-one days prior to the due date, and must include information about the fee and its basis. In addition, the creditor must follow specific rules set out in the Act when imposing a late fee. For example, the fee cannot exceed the amount allowed by the state of Georgia, and must reflect the actual cost to the creditor of collecting the late payment. Ultimately, a creditor can charge a late fee for a credit card payment, but must follow the rules set out in the Fair Credit Billing Act to do so. Consumers should be aware of these rules and make sure that they make their payments on time to avoid any unnecessary fees.

Related FAQs

How can I lower the interest rate on my credit card?
What is a Fair Credit Billing Act?
Is there a maximum amount of credit card debt I can have?
What is a credit card processor?
Can I use a credit card to make purchases abroad?
What is APR?
How do I apply for a credit card?
What is a secured credit card?
How do I close a credit card account?
What is a grace period for credit card payments?

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

Related FAQs

Related Blog Posts