Does Indiana law dictate how much an institution can charge a customer for a late payment on a credit card? I have heard that we are not to charge a fee higher than what our Reg Z late fee would be...$18.50. To me this does not correlate with other institutions terms and conditions that I have looked at.

Any help is welcomed. Thank you.

Allowable late fees for any consumer loan, closed or open end, are governed by the IC.

Late fees on credit cards that are greater than the IC are most likely being exported from another state that allows a higher charge. In the 80's a lot of national banks established their credit card operations in states such as Delaware, Arizona, etc. so they could export their rates.