Consumer Credit Regulation: 4.8.6.2 Property Inspection Fees
Many credit contracts are written broadly to allow creditors to impose both late fees after a delinquency and “property inspection fees” for home-secured loans.262 A California decision holds that property inspection fees are not late fees, and may be charged in addition to late fees, which are capped by California law.263 This analysis would appear to undermine the concept of late fees as a form of liquidated damages.