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#460062 - 11/21/05 09:52 PM HELOC late fees?
Anonymous
Unregistered

Can we charge late fees on a HELOC in Colorado. We have done a few HELOC loans and are now second guessing ourselves about being able to charge late fees.

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#460063 - 11/22/05 12:48 AM Re: HELOC late fees?
Geoz Offline
100 Club
Joined: Apr 2003
Posts: 148
Colorado
Yes, if contracted for in the loan docs and properly disclosed, when the payment is more than 10 days late you can charge a late fee up to 5% of the unpaid portion of the payment for consumer credit transactions loans secured by real estate. For more particulars check this section of the UCCC out.

Source: Colorado Statutes : TITLE 5 CONSUMER CREDIT CODE : CONSUMER CREDIT CODE : ARTICLE 2 FINANCE CHARGES AND RELATED PROVISIONS : PART 2 MAXIMUM FINANCE CHARGES AND OTHER FEES AND CHARGES : 5-2-203. Delinquency charges.

http://198.187.128.12/colorado/lpext.dll?f=templates&fn=fs-main.htm&2.0
Last edited by Geoz; 11/22/05 01:02 AM.
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#460064 - 11/23/05 03:49 PM Re: HELOC late fees?
Denovo Co Offline
Gold Star
Joined: Jan 2005
Posts: 375
NM
The statute does not specifically mention revolving or non-revolving credit. Does it make a difference if we want to charge a fee on an open-end revolving credit plan?

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#460065 - 11/28/05 06:01 PM Re: HELOC late fees?
Geoz Offline
100 Club
Joined: Apr 2003
Posts: 148
Colorado
I don't have the actual definitons handy, but a "consumer credit transaction" under the UCCC includes consumer closed-end and consumer revolving open-end as well as consumer credit sales and leases. Hope this helps

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