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BankersOnline.com Forums State-Specific Compliance Issues Texas Late Charge on Term Note
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#1680241 - 03/21/12 02:46 PM Late Charge on Term Note
jross Offline
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Joined: Dec 2009
Posts: 184
TX
Are we able to charge a late fee on term notes that are past due? Does it matter if it is comm or cons?
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#1680504 - 03/21/12 06:10 PM Re: Late Charge on Term Note jross
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
Not for consumer loans. The Finance Code doesn't authorize it. You just continue to accrue interest until payoff...or a default rate if your contract includes that provision.

I think it IS authorized for commercial loans but the fee must be reasonable.

If anyone disagrees, please speak up.
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#1680620 - 03/21/12 07:49 PM Re: Late Charge on Term Note jross
jross Offline
100 Club
Joined: Dec 2009
Posts: 184
TX
What you stated is what our system allows us to charge.

Consumer - Post maturity rate only

Commercial - Post maturity rate and late charge
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