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#1967932 - 10/08/14 02:21 PM Penalty Rate
kimmie10 Offline
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Joined: Jul 2011
Posts: 50
If we have an unsecured loc with a penalty rate of interest on an outstanding balance could we institute a late fee as well or woul this be pyramiding of late fees?
Last edited by kimmie10; 10/08/14 02:21 PM.
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Lending Compliance
#1967956 - 10/08/14 02:43 PM Re: Penalty Rate kimmie10
Rocky P Online
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Florida
That would be in your contract (the note)
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#1967965 - 10/08/14 02:55 PM Re: Penalty Rate kimmie10
kimmie10 Offline
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Joined: Jul 2011
Posts: 50
Haven't drafted it yet just trying to see if it comports with regulation.

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#1967973 - 10/08/14 03:04 PM Re: Penalty Rate kimmie10
David Dickinson Offline
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Central City, NE
I don't think that's pyramiding. If you charged a late fee because they hadn't paid the late fee, that's pyramiding. If you charge a late fee because interest hasn't been paid, it's okay with federal law. You might check with your state laws too.
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#1968013 - 10/08/14 04:02 PM Re: Penalty Rate Rocky P
kimmie10 Offline
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Joined: Jul 2011
Posts: 50
Great thank you!

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