Can a credit card company charge late fees on a late fee?
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Can a credit card company charge late fees on a late fee?
Asked on February 13, 2012 under Bankruptcy Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You need to look at how the agreement with the credit card company is structured. If the late fee, for example, is added to the balance due on the card, then interest would acrue on it. Or if the agreement provides that late fees will increase or escalate if not paid within a certain period of time, that would also be enforceable. The issue of when, whether, how, and how much late fees are charged is a contract matter; it is governed by the credit card agreement. They may not add fees not in the agreement, but may enforce what you agreed to.
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