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

Yes, a creditor can charge a late fee for a credit card payment in Hawaii. Federal law protects consumers from some of the more extreme late fees. For example, if a consumer is late on a payment, the late fee must be reasonable and proportional to the situation. Hawaii has further laws protecting consumers from credit card companies. Any late fees charged by a credit card company in Hawaii must be reasonable and in proportion to the amount of the minimum payment due. Furthermore, the credit card issuer must disclose the late fee in writing, and keep it current. Additionally, the late fee cannot exceed 5% of the minimum payment due. This protects customers from being charged excessive fees for a late payment. It is important to remember that the penalty rates and fees associated with late payments are often a part of the credit card agreement that consumers sign when they open the account. If a consumer is considering an account with a creditor, it is important to read the terms and conditions so they know what to expect if a payment is late. Overall, creditors can charge a late fee for a credit card payment in Hawaii, but the fee must be reasonable and proportional to the minimum payment due. Knowing the associated terms and conditions is key to avoiding any additional fees associated with late payments.

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

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