What is a late payment fee?

A late payment fee is a charge levied by a credit card company when a credit card bill is paid after the due date. In Delaware, the Credit Card Law requires that cardholders receive written notice of any late payment fee before it is added to their balance. The notice typically explains how the late payment fee is calculated, when it is applied, and how to avoid the fee in the future. Generally, late payment fees are added to credit card balances on the day they are due. The fee is typically a percentage of the monthly payment amount; for example, a credit card company may charge a 3% late payment fee. In Delaware, the Credit Card Law caps late payment fees at $10 for any individual cardholder. Additionally, the Credit Card Law requires that cardholders receive a minimum of 21 days after a billing statement is sent before a late payment fee is applied. This means that if you fail to make your payment before the due date, you still have 21 days to get your payment in and avoid a late payment fee. Finally, it is important to keep in mind that late payment fees can result in additional charges such as increased interest rates, increased annual fees, and additional fees for using the credit card. Consequently, it is important to always meet payment deadlines to avoid costly late payment fees.

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What is a late payment fee?

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