Late Charges

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Are late charges permitted?

Statutes

"Late or delinquency charges are permissable if they are provided for in the written agreement. Additionally, in the case of loans to consumers, no more than 1 late or delinquency charge may be imposed for any single payment or portion of a payment. Md. Code, Com.; § 12-1008

A delinquent or late charge of the greater of $2 or 5% of the total deliquent amount is permissible if the delinquency is at least 15 days and has not already been charged a delinquency fee. Md. Code, Com.; § 12-105

A contract requiring a late fee must disclose certain information, and the late fee is subject to specific limitations. Md. Code, Com.; § 14-1315"

Cases

Comments

None.

Contributors

Steven N. Leitess
Leitess Friedberg PC

The statutory information was edited and reviewed with the support of MultiState

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