Payment Delinquency

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January 1, 1 6 min read Definitions

Late Charge Late Fee Penalty Payment Delinquency Grace Period Mortgage Payments Credit Terms

A late charge or late fee is a penalty that businesses or lenders impose on customers who fail to make a payment by the specified due date, including any applicable grace period. These fees can be quite substantial, sometimes up to 5% of the regular payment amount, and are meant to incentivize timely payments.