Our management is looking to remove the ceiling on our loan late fees. Currently we charge 5% with a $50.00 max. I assume this matter is state law driven. Does anyone know what our state laws are concerning this? I would assume we would be OK on commercial loans, but am wondering about consumer loans.

Need a little help on this. Thanks

If your consumer loans are written under state statute 47.59 then the language is %5 of the late payment or $7.28 whichever is greater. (the dollar amount just went up on July 1, that amount is subject to change on even numbered years. So we will not see a change again until July 1, 2010. There is no maximum listed in the statute. You will know if that is the right statute if it is listed on your note or if no statute is listed then it defaults to 47.59.