In North Carolina commercial collection, retail debt collection, or consumer debt collection, late fees on a loan payment are permissible if agreed upon by the parties to the loan contract. However, there are significant limitations on what late fees can be charged to a debtor. Contact the debt collection attorneys of Maginnis Law, PLLC at 919.526.0450 to discuss the validity of particular contractual legal fees in loan agreements or promissory notes. You can also send us a message through our contact page.
Some examples of prohibited late fees in loans include:
1) Late fees in excess of 4% of the amount of payment past due;
2) Late fees charged before the loan is 15 days past due;
3) Late fees more than once for a single payment;
4) Additional late fees accrued when a late fee is deducted from a monthly payment, resulting in a shortfall on a subsequent payment;
5) Late fees on accelerated debt where repayment of the entire balance is due in a single payment.
The debt collection attorneys at Maginnis Law, PLLC can assist your business in properly structuring loan agreements and promissory notes as well as individuals subject to a personal loan with improper and unenforceable late fees in retail collection loans. Maginnis Law, PLLC is a Raleigh litigation firm with civil attorneys handling cases in Cary, Apex, Wake Forest, Durham, and the rest of the Triangle area. Contact the firm at 919.526.0450 to speak with a Raleigh commercial debt collection attorney or send a message through our contact page.