What is the statute that outlines what is the maximum late fee that can be assessed on a consumer unsecured loan?

For a bank or non-depository institution?

For both.

Non-depository: A delinquency charge of up to $15 for each payment in default for at least 10 days if the charge is agreed upon, in writing, between the parties before imposing the charge.

Nothing in statute for a bank; however, if more than industry standard (5% of payment amount) I'd be wary of running afoul of UDAAP.

Hope that helps!

Yes, it does. We apply 5% however I noticed on a disclosure for a consumer unsecured loan that we are considering purchasing they have listed $40 or 5% of the loan payment, whichever is less.

Does this make sense to you?

516.031(3)(a)(9) for the non-depository

No, that does not make sense to me. The statute does not provide for an "either/or". Does the lender have an explanation?

Penalty in Florida for a violation of this type is a first degree misdemeanor. Worse, if the state regulator gets wind of it (by complaint or otherwise), the lender, or your institution if you purchase the paper, could be fined and compelled to reimburse all borrowers who were charged in excess of the allowable.

Thanks for the info.