Late Fees
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Statutes
"Late fees on loans governed by North Carolina usury statutes are permissible when agreed upon by the parties in the contract, but is limited to:
(1) the amount disclosed to the borrower pursuant to the Federal Consumer Credit Protection Act or
(2) the greater of $35 or 4% of the amount of payment past due for qualifying loans or extension of credit, or
(3) 4% of the amount of the payment past due for all other loans or extensions of credit. N.C. Gen. Stat. § 24-10.1 "
(1) the amount disclosed to the borrower pursuant to the Federal Consumer Credit Protection Act or
(2) the greater of $35 or 4% of the amount of payment past due for qualifying loans or extension of credit, or
(3) 4% of the amount of the payment past due for all other loans or extensions of credit. N.C. Gen. Stat. § 24-10.1 "
Cases
Further, under North Carolina law late fees are considered interest, and are subject to the forfeiture provisions of N.C. Gen. Stat. § 24-2. See Swindell v. Federal Nat’l Mtg. Assoc., 330 N.C. 153 (1991).
Comments
See “Usury” below
Contributors
Bryon Saintsing, Esq. Tom Gray, Esq.
Smith Debnam Narron Drake Saintsing & Myers, LLP
The statutory information was edited and reviewed with the support of MultiState
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