16a-2-502. (UCCC) Late fees.

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16a-2-502.

(UCCC)Late fees.

(1)The parties to a consumer credit transaction may contract for a late fee on any installment not paid in full within 10 calendar days after its scheduled or deferred due date in an amount not exceeding 5% of the unpaid amount of the installment or $25, whichever is less.

(2)As an alternative to the late fee set forth in subsection (1), the parties to a consumer credit transaction may contract for a late fee not to exceed $10 on any installment not paid in full within 10 calendar days after its scheduled or deferred due date, except that if the scheduled payment amount is $25 or less, the maximum late fee shall be $5.

(3)A late fee may be collected only once on an installment however long it remains in default. A late fee may be collected at the time it is assessed or at any time thereafter.

(4)No late fee may be assessed when such a fee or charge is attributable solely to failure of the consumer to pay a late fee on an earlier installment and the payment is otherwise a periodic payment received on the due date, or within 10 calendar days after its scheduled or deferred installment due date.

(5)Notwithstanding subsections (1),

(2)and (4), the parties to a lender credit card agreement may contract for a late fee in an amount agreed to by the consumer and may impose such charge on any installment not paid in full on the next business day following the scheduled due date of the late payment.

(6)Notwithstanding subsections (1),

(2)and (4), no late fee may be collected on a lender credit card installment which is paid in full on the next business day following the scheduled or deferred due date even though an earlier maturing installment or a late fee on an earlier installment may not have been paid in full.