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

Yes, in Montana, a creditor can charge a late fee for a credit card payment. The Montana Consumer Protection Act covers consumer credit transactions, including credit card payments. This Act states that creditors may charge a late fee if a payment is not made within 30 days of the creditor’s due date. The maximum late fee allowed in Montana is: • $10 for the first late payment, • $20 for the second late payment, • And $30 for any additional late payment within a 12-month period. The late fee cannot be imposed more than once on any single payment due. For customers who pay their bills by mail, creditors must give them at least 14 days’ notice before the fee is applied. Creditors must also give customers 14 days’ notice before increasing the amount of a late fee. If a credit card issuer violates the Montana Consumer Protection Act, the consumer can bring a complaint to the Montana Department of Justice or file a lawsuit in a Montana state court. Although it is legal for creditors to charge late fees on credit card payments in Montana, customers should try to pay their bills on time. Late fees not only add to the bill, but they can also hurt the customer’s credit score. The best way to avoid late fees is to pay credit card bills on time.

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

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