Late Fees in Commercial Debt Collection,


In North Carolina commercial collection, retail debt collection, or consumer debt collection, late fees on a loan payment are permissible if agreed upon by the parties to the loan contract.  However, there are significant limitations on what late fees can be charged to a debtor.  Contact the debt collection attorneys of Maginnis Law, PLLC at 919.526.0450 to discuss the validity of particular contractual legal fees in loan agreements or promissory notes.  You can also submit a request to be contacted via our contact page at

Some examples of prohibited late fees in loans include:

1)      Late fees in excess of 4% of the amount of payment past due;

2)      Late fees charged before the loan is 15 days past due;

3)      Late fees more than once for a single payment;

4)      Additional late fees accrued when a late fee is deducted from a monthly payment, resulting in a shortfall on a subsequent payment;

5)      Late fees on accelerated debt where repayment of the entire balance is due in a single payment.

The debt collection attorneys at Maginnis Law, PLLC can assist your business in properly structuring loan agreements and promissory notes as well as individuals subject to a personal loan with improper and unenforceable late fees in retail collection loans.  Maginnis Law, PLLC is a Raleigh litigation firm with civil attorneys handling cases in Cary, Apex, Wake Forest, Durham, and the rest of the Triangle area.  Contact the firm at 919.526.0450 to speak with a Raleigh commercial debt collection attorney or send a message through our contact page.