Late Payment Fee

A late payment fee is a charge that may be assessed by a lender if a borrower fails to make their required minimum monthly payment by the specified due date. This fee is designed to cover the costs associated with processing late payments, such as additional administrative costs and potential losses from missed interest payments. In some cases, the late payment fee may be applied as a percentage of the unpaid balance, while in others it may be a flat fee. While late payment fees can vary depending on the lender, they are typically between $15 and $35.