Late Charges

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Statutes

"A person licensed under the Regulatory Loan Act may require a borrower to pay late charges permitted under the Credit Reform Act. MCL § 493.13. The Credit Reform Act permits a regulated lender to charge a late fee for an installment payment that is received after the expiration of a grace period, but may not exceed $15 or 5% of the installment payment, whichever is greater. MCL § 445.1856.

An insurance premium finance agreement may provide for the payment by the insured of a delinquency charge of $1.00 to a maximum of 5% of the amount of the delinquent installment payment on any installment payment that is in default for a period of 10 days or more with limited exceptions. MCL § 500.1510.

A default charge may be collected on each installment payment of an installment sale contract that is not paid on or before the due date of the payment. The default charge shall not exceed the rate permitted in the credit reform act on the amount of each payment in arrears. MCL § 492.120."

Cases

Comments

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Contributors

Jay L. Welford, Esq., Todd M. Gers, Esq.
Taft

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

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