The North Carolina General Assembly has issued Senate Bill 162 to revise Section 24-10.1 Late Fees to reflect the following:
“A late payment charge shall not exceed any of the following:
a. The amount disclosed with particularity to the borrower pursuant to the federal Consumer Credit Protection Act, Chapter 41 of Title 15 of the United States Code, (Truth in Lending Act) and the regulations adopted under it, if that act applies to the transaction.
b. For a loan or extension of credit that meets all of the following conditions, the greater of thirty-five dollars ($35.00) or four percent (4%) of the amount of the payment past due:
1. The loan or extension of credit is made by a bank or savings institution organized under the law of North Carolina or of the United States.
2. The loan or extension of credit is not secured by real property.
3. The loan or extension of credit is governed by G.S. 24-1.1.
4. The loan or extension of credit has an original principal balance greater than or equal to one thousand five hundred dollars ($1,500).
c. For any other type of loan or extension of credit governed by G.S. 24-1.1 or G.S. 24-1.1A, four percent (4%) of the amount of the payment past due”
Additionally, a late payment may not be charged unless the payment is “30 days past due or more for a loan on which interest on each installment is paid in advance” or the payment is “15 days past due or more for any other loan.”
Tags: North Carolina, State Mortgage Compliance | Comments Off on North Carolina Amends Late Payment Charge Limitations
