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A typical agreement concerning a late payment charge would be a statement on the sales slip or service agreement stating: Payment is due within 30 days of sale. A 1% per month (12% per year) late payment fee will be assessed on any unpaid balance remaining after 30 days..
The amount of the fee depends on what type of loan you have. In some cases, the amount charged for late payments is also limited by state law. On most types of loans, the late charge is only applied to principal and interest. Letâs say you have a $1,000 monthly mortgage payment based on principal and interest. If the late charge is 5%, youâre out $50 additional dollars.