I have been having trouble finding limitations on late charges that can be assessed for auto loans. We are a MA bank with branches in CT. If we make an auto loan to an individual residing in CT, must we follow CT state law? If so, what (if any) are the late charge limitations? Thanks.

There are no specific late charges mentioned other then reasonable. Most lenders and banks in the region use the standard 15 day late at 5%. Certain lenders have been changing to a 10 day late at 5%. I believe that the customary conforming standards are based around 15 day and 5% late when there are no state required restrictions in place.

Sec. 36a-778. (Formerly Sec. 42-91). Delinquency and collection charges. The holder of any retail installment contract or any installment loan contract shall not receive or collect any charges or expenses for delinquency and collection except as follows: The holder of a retail installment contract or installment loan contract, other than a contract for the purchase of a commercial vehicle, may collect a delinquency and collection charge for default in the payment of any such contract or installment thereof, when such default has continued for a period of ten days, such charge not to exceed five per cent of the amount of the installments in default or the sum of ten dollars, whichever is the lesser; provided this provision shall have no application to installment loan contracts regulated by sections 36a-555 to 36a-573, inclusive. The holder of any retail installment contract or any installment loan contract for the purchase of a commercial vehicle, as defined in section 36a-770, may collect a delinquency and collection charge for default in the payment of any such contract or installment thereof, when such default has continued for a period of ten days, such charge not to exceed five per cent of the amount of the installments in default, provided this provision shall have no application to installment loan contracts regulated by sections 36a-555 to 36a-573, inclusive. In addition to any such delinquency and collection charge, the retail installment contract or the installment loan contract may provide for the payment of attorney's fees not exceeding fifteen per cent of the amount due and payable under such contract when such contract is referred to an attorney, not a salaried employee of the holder of the contract, for collection, plus the court costs. The restriction on charges herein provided shall not apply to any expenses permitted under section 36a-785.

Can a catalog house add a late fee assessment in addition to interest on a last-due payment, or is this pyramiding and a penalty that cannot be permitted?

what are allowable late fee's for a commercial tenant in new york state

Is there a state specific chart available that shows what late charge regulations are in effect for the various states?

Isn't this part of the Statute referring to Retail Sales Financing (third-party)? Not a loan given directly to the customer by the bank? Just need clarification. Thanks.