Definitions for "Late Charges"
Charges that the lender may require the borrower to pay if the borrower fails to pay all or a portion of a required installment payment within a certain number of days after it is due.
Amounts accrued and assessed on a delinquent debt; the term includes administrative costs, penalties, and additional interest.
Charges that are assessed for late payments of principal or interest on a loan. Late charges may be determined as a percentage applied to the unremitted payment or as a fixed dollar amount. Some states limit late charges. Federal Regulation AA prohibits a practice called cascading late charges for consumer loans.