No interest or additional fee shall be charged on any late
fees or other default-related fees allowed by MCAA.
1. A late fee of ten percent (10%) of the
past-due amount may be charged and collected by a Licensee if
both
of the following conditions are met:
a. The
account holder fails to pay a monthly payment "within ten (10) business
days after the due date." And
b. Such fees are "clearly disclosed in the
credit availability agreement."
2. Late fees shall be tracked as a separate
line item and shall not be added to or combined with the principal balance to
incur additional fees. The statutory limit of a maximum 10% late fee penalty on
the amount due/owing for a delinquent monthly payment is sufficient to
compensate for any late payment without the incurrence of additional
fee/interest on a late fee itself.
3. Late fees shall not be deducted from any
regular payment for the purpose of creating an additional late fee.
4. The addition/inclusion of any previous
late fee to increase the Outstanding Principal Balance is prohibited.
5. A late fee may be charged and collected
only once on any scheduled payment, regardless of the period during which the
scheduled payment remains in default.
6. Bi-Weekly late fees: Late fees may only be
charged after 10
business days have elapsed following the monthly
due date. No more than 10% of the total monthly payment shall be collected as a
result of late payment due during any month.
Example: A Licensee contracting for bi-weekly payments in
lieu of one monthly payment, may only charge a 10% late fee on a single
bi-weekly payment that is more than 10 business days late, thus
ensuring that if both bi-weekly payments are more than 10 days late, the
account holder incurs total late fees not greater than 10% of the total payment
due in any given Month.
