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Maverick
Maverick, Lawyer
Category: Real Estate Law
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Experience:  20 years professional experience
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John: I'm trying to research what is the maximum late payment fee

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John: I'm trying to research what is the maximum late payment fee that can be charged in the State of Florida. Secondly, if it is expressed as a percentage and there are say 4 late payments totalling $2500 do i need to pay penalties on penalties or just 2500X the late payment penalty percentage?
Regards Peter
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Maverick replied 1 year ago.
Welcome! My name is Maverick. I very much enjoy what I do and I hope that you will benefit from this information.
Florida law only allows a lender to charge a late fee “on each installment which is in default for a period of not less than 10 days in an amount not in excess of 5 percent of such installment”.
It also provides that only one late fee may be assessed and collected in connection with any installment, regardless of the period during which it remains in default.
Finally, if a FLA lender chooses to accelerate a loan, late fees may not continue to accrue after the date of acceleration.
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0687/Sections/0687.03.html
See section (c) at link above.
So, in your case, if the lender charges late fees that do not comply with these statutory provisions, then those amounts would likely be included in the usury calculation and could subject the lender to penalties.
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