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 Maryland. This is in accordance with the Maryland Consumer Protection Act, which allows creditors to charge up to $2.50 for the first late payment and up to $5.00 for any subsequent late payments. The fee is capped at a maximum of $15.00. The late fee must be disclosed to the customer in writing prior to charging the fee. If a creditor charges a late fee, the customer has the right to dispute the fee and request a refund if they believe it is not warranted. Additionally, the creditor must also provide a thirty-day grace period from the due date before charging a late fee. The grace period allows a customer to make a payment without incurring a late fee. If a creditor fails to comply with any of the regulations set forth under the Maryland Consumer Protection Act, the customer may have some recourse with the Office of the Attorney General.

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

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