Consumer Credit Regulation: 4.8.3 Late Fee Statutes
Statutes governing late fees are generally more advantageous for consumers than the common law rule. A common statutory formula allows the lender to collect the lesser of $5 or 5% of the regular installment as a late fee, and restricts the lender to one late fee per installment no matter how late the installment is paid.226 Some statutes also specify a minimum grace period which must be allowed before a late fee may be imposed.227