Help! Our consumer notes list the late fee as 10 days 5% subject to change pursuant to Indiana Code 24-4.5-1-106. I researched the code and you have to be Philidelphia Lawyer to figure it out.

We have our index setup as 10 days 5% $15.50 maximum, no minimum. Does anyone happen to know what the current legal limit is for late fees?

Your help is greatly appreciated.

Thanks

IC 24-4.5-3-203.5 does provide for a late charge of what is $16 as of 7/1/02 on any payment not made in full within 10 days of the due date as long as your contract provides for it. This is for all accounts open end, closed end, etc. First mortgage loans are not under this provision and can be in whatever amount as long as it is properly contracted for and disclosed.

You can charge a late charge of $16 regardless of the payment amount. We charge 5% of the unpaid payment or $16 whichever is less with no minimum.