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

In Washington, a creditor can charge a late fee for a credit card payment under certain conditions. According to the state’s Credit Card Act, creditors must notify cardholders of the potential for late fees before the card is issued. The notice must provide details about the amount of the fee, the conditions under which it will be charged, and the date on which it will be charged. Creditors can charge a late fee if the payment is received after the due date, but must let the cardholder know that they have at least 25 days to make payment without incurring a late fee. Furthermore, the fee may not exceed $25 in the first instance, or $35 for subsequent late payments within a six-month period. Creditors must also give cardholders a written notice at least 10 days before a late fee is charged. In Washington, creditors may not charge a late fee if they fail to provide notification as required by law, or if the cardholder pays at least the minimum payment amount before the due date. Furthermore, if the creditor sends a false or misleading statement to the cardholder, the creditor cannot charge a late fee for that statement. In conclusion, a creditor in Washington can charge a late fee for a credit card payment, but these fees must comply with the restrictions set out in the Credit Card Act and must be properly disclosed to the cardholder in advance.

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