- A fee that is charged to a borrower who does make his or her payment on time.
late payment penalty, late fee
Related Terms and Acronyms
- Late Payment — Definition,
- A sum a borrower sends to a lender that is received past the date when it was due.
- Loan — Definition,
- Letting another party use something of value temporarily.
- Loan Application Fee — Definition,
- A cost charged by a lender for processing loan application documents that are submitted by prospective borrowers.
- Penalty — Definition,
- In mortgage terms, a penalty is a set rate or length of time the penalty will be charged based on the remaining loan amount. The penalty is usually three months interest or interest rate differential.
- Penalty Rate — Definition,
- Several percentage points higher than a card's current annual percentage rate, which goes into effect after two late payments. On some cards, a single late payment triggers a penalty rate.
- Per Item Charge — Definition,
- A fee charged to account holders who exceed the allowable number of free transactions for their accounts. Or, the balance in an account does not meet the average monthly balance required to waive the fee.