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

In Texas, a creditor (lender) can charge a late fee for a missed credit card payment. Under the credit card laws in Texas, a creditor can charge customers a late fee for failing to make payments on time. In Texas, the maximum late fee that can be charged will depend on the balance due on the credit card account. According to the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, late fees should be “reasonable and proportional” to the violation. Generally, the amount charged for a missed payment should not exceed 25 percent of the payment itself. In addition to late fees, creditors in Texas can also assess finance charges for unpaid balances. This means that creditors may add additional interest charges to the balance due if payments are not made on time. Each lender may have different terms regarding what constitutes a delinquent account and whether they will assess a late fee and/or finance charges. It is important that consumers in Texas understand their rights when it comes to credit cards. Credit card law in Texas and across the country is designed to provide consumer protection. Consumers should be aware of all the terms and conditions of their credit card accounts and contact their creditor if they have any questions or concerns.

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

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