I'm working on late fees and dealer paper and need input. The Fed Box on my Retail Installment Sales Contract - Simple Interest says "Late Charge: If a payment is late, Buyer will be charged a fee of $___ or 5% of the unpaid amount of the payment, whichever is greater" and the fine print on the same note says "greater of 5% of unpaid amount of payment or up to the amount set for delinquency charges by the Admin of the Oklahoma Department of Consumer Credit at the time the payment becomes delinquent. Buyer agrees that amount set by reule of the Admin. may increase to an amount greater than that disclosed in this Contract". Each Dealer may not put the same dollar amount in the blank. Some may put $16.50, $18.00, $18.50 and $19.00. When we purchase the dealer paper, can we default that charge to each customer to the same amount. Say 5% of unpaid payment or $19.00, whichever is greater? Can we put this in our letter to the customer at time of purchase?
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Just working here until I get my letter from Hogwarts.