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#123512 - 10/19/03 11:16 PM Late Fees In Georgia
Compliance Poster Offline
Gold Star
Joined: Sep 2001
Posts: 440
Other than the GFLA, are there any prohibitions on the amount of late fees that a bank may charge, such as on a 90-day note. I noticed a reference in 7-4-18 that “a) Any person, company, or corporation who shall reserve, charge, or take for any loan or advance of money, or forbearance to enforce the collection of any sum of money, any rate of interest greater than 5 percent per month, either directly or indirectly, by way of commission for advances, discount, exchange, or the purchase of salary or wages; by notarial or other fees; or by any contract, contrivance, or device whatsoever shall be guilty of a misdemeanor”. I wasn’t sure how this applied to late fees. Would you please advise on how to treat late charges in Georgia?

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#123513 - 10/20/03 01:59 PM Re: Late Fees In Georgia
waldensouth Offline
Power Poster
waldensouth
Joined: Nov 2001
Posts: 7,983
FINALLY ABOVE the gnat line
Well, if you are a bank and not a mortgage company you don't have to worry about the weirdness in the Georgia Fair Lending act anymore. O.C.G.A. 7-4-5 indicates that the federal loan act applies on retail installment contracts which has limitations on late fees charges on MH loans. If you're making GILA monster loans(Georgia Industrial Loan Act) then you have late fee provisions in O.C.G.A. 7-3-14. Otherwise, its between you and your borrower and must be disclosed in the contract.
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