Late Charge

The phrase “late charge” refers to a fee that consumers must pay when they miss a payment deadline for any form of financial agreement, such as a loan, credit card, insurance, or rental agreement. When a borrower is late with a payment, the lender increases the outstanding sum the next month by adding the late charge.

Late fees are included in the contract or agreement and are intended to encourage customers to pay on time. Any modifications to late fees shall be notified prior to Borrowers in the paper.

Fees charged to debtors and borrowers are one of the many ways that lenders and other creditors profit. One of those charges is late fees. People who don’t meet their financial commitments by a specified date are subject to late fees.