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#68652 - 03/20/03 06:50 PM Late Payment fees - Consumer Loans
Summer101 Offline
Platinum Poster
Joined: Jun 2001
Posts: 644
815 ILCS 205/4a(e) says a late payment charge of 5% of the payment if payment is over $200 or $10 if payment is under $200 is allowed.

I have been asked if it is possible to charge a higher rate of interest during the period of time a loan is past due. In my opinion, the above ILCS cite would prohibit this. Am I reading this correctly?

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#68653 - 03/21/03 11:05 PM Re: Late Payment fees - Consumer Loans
Anonymous
Unregistered

It's late Friday, and I do not feel like doing the research, but I am almost certain that you can charge a higher rate of interest (assuming disclosed)once you have charged off the loan. I can see it in the contract language in my head, but am not 100% sure. I can clook it up Monday if you want.

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#68654 - 03/24/03 01:56 PM Re: Late Payment fees - Consumer Loans
Summer101 Offline
Platinum Poster
Joined: Jun 2001
Posts: 644
I didn't find anything prohibiting charging a higher rate of interest after maturity. What we are trying to determine is whether a higher rate can be charging during any period when a payment is past due. Based on the ILCS mention previously, I think we are limited to the 5% / $10 limits during the term of the loan.

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#68655 - 03/24/03 04:09 PM Re: Late Payment fees - Consumer Loans
Anonymous
Unregistered

I believe that would be correct as well.

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