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#55457 - 01/21/03 11:29 AM State maximum late fee charges
Anonymous
Unregistered


Anonymous

Loan type: Real Estate and/or Non Real Estate
Purpose: Consumer & Business
Concern: State maximum late fee charges (Oklahoma, Texas, New Mexico, Arkansas)

Question:
What are the maximum late fees allowed by state law on real estate secured loan transactions for business and consumer real-estate purpose loans?

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#55458 - 01/24/03 02:31 PM Re: State maximum late fee charges
JulesB Offline
Gold Star

Registered: 02/04/02
Posts: 324
Loc: A Designated Tree City in OK, ...
These are segments from an article in the August 1999 Legal Briefs from the OBA.

1. What is the maximum late fee on consumer loans?

Subpart (5) of 14A O.S. Section 3-203 allows a bank to charge a late fee on consumer loans equal to "the greater of five percent (5%) of the unpaid amount of the payment [for the most recent installment] or the dollar amount provided by the rule of the Administrator." The Administrator of Consumer Credit has provided for an amount of $16.50 under this section. Therefore, a bank may charge the greater of 5% of the past-due payment, or $16.50. As an example that I often give, if the regular installment payment on the consumer loan is more than $330, the 5% method will always give you a late fee that is larger than $16.50; and if the monthly installment is less than $330, the $16.50 late fee will always give you a larger amount than if you use the 5% method.

5. What late fee provisions apply to residential mortgage loans?

The UCCC does not apply to "loans made to enable the debtor to build or purchase a residence or to refinance such loan" (Section 1-202), so most first-mortgage real estate loans on a residence are not subject to the UCCC's late fee provisions. Another exclusion, in Section 3-105, provides that any loan "primarily secured by an interest in land" is not a consumer loan if the interest rate does not exceed 13%. On this basis, even most second mortgages, including home equity loans, would be exempt from the UCCC's late fee provisions.

However, there is a Federal regulation, at 12 C.F.R. Section 590, which applies to first-lien mortgage loans on residential real property that have been originated since March 31, 1980. This regulation provides that no late charge can be imposed if an installment is paid on or before the 15th day after the due date. (For a mortgage payment due on the first day of the month, a late fee cannot be imposed until the 17th day of the month.) The late charge on such loans may not exceed 5% of the unpaid amount of the installment that is late. A lender also cannot charge both a deferral charge and a late fee on the same installment payment for these loans.

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#55459 - 01/24/03 05:35 PM Re: State maximum late fee charges
Queen Mum Online
Power Poster

Registered: 03/09/01
Posts: 3888
Loc: OK
Julie - wouldn't real estate loans that are true simple interest installment for 3 years or even 5 be considered a consumer loan? Aren't the rules you stated more for loans that are on a 360 day basis and sold on the secondary market?

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#55460 - 01/28/03 01:40 PM Re: State maximum late fee charges
JulesB Offline
Gold Star

Registered: 02/04/02
Posts: 324
Loc: A Designated Tree City in OK, ...
I just copied and pasted straight from Charles Cheatham's article in Legal Briefs. Guess I should have actually read what they said. Not sure what the answer is whether the short term stuff would be considered a consumer vs real estate without doing more research.
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#55461 - 03/12/03 02:00 PM Re: State maximum late fee charges
Chris@OBA Offline
New Poster

Registered: 03/12/03
Posts: 5
Loc: Oklahoma City
Charles and I have talked about this, and the information on the late fee allowable on Real Estate Loans is erroneous information.

For late fees on Real Estate loans the lender is limited only to what they can charge in the market, or if the loan is subject to the UCCC, the allowable late charges under the UCCC. However, if the Lender is making loans to sell into the secondary market then the Lender would need to make sure the loans were made in accordance with the market they are selling into and this includes late fees.

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#55462 - 04/23/03 12:08 PM Re: State maximum late fee charges
MackenzieS Offline
Diamond Poster

Registered: 07/08/02
Posts: 1722
Loc: Oklahoma
Does anyone know whether or not most banks in Oklahoma are charging the late fee? Currently we do not, but I am wondering why.

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#55463 - 09/10/03 10:42 AM Re: State maximum late fee charges
Perplexed Offline
Member

Registered: 08/30/02
Posts: 88
Mac,

We charge late fees on all our loans.
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#55464 - 10/14/05 11:30 AM Re: State maximum late fee charges
Anonymous
Unregistered


Quote:

Anonymous

Loan type: Real Estate and/or Non Real Estate
Purpose: Consumer & Business
Concern: State maximum late fee charges (Oklahoma, Texas, New Mexico, Arkansas)

Question:
What are the maximum late fees allowed by state law on real estate secured loan transactions for business and consumer real-estate purpose loans?




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#55465 - 10/21/05 02:05 PM Re: State maximum late fee charges
Anonymous
Unregistered


What is the limit on what a company may charge as a late fee on unpaid invoices?

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#55466 - 10/21/05 04:46 PM Re: State maximum late fee charges
GenerousLife Offline
Diamond Poster

Registered: 02/12/02
Posts: 1434
Loc: USA
The UCCC would cover delinquent fees on extensions of credit but on an invoice for services rendered, wouldn't that be contractural?
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"No problem can withstand the assault of sustained thinking." ~ Voltaire
"Sustained thinking gives me a headache." ~Me

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