(a) In connection with collecting a debt arising out of an extension of credit to a consumer in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is an unfair act or practice within the meaning of section 5 of that Act for a creditor, directly or indirectly, to levy or collect any deliquency charge on a payment, which payment is otherwise a full payment for the applicable period and is paid on its due date or within an applicable grace period, when the only delinquency is attributable to late fee(s) or delinquency charge(s) assessed on earlier installment(s).
(b) For purposes of this section, collecting a debt means any activity other than the use of judicial process that is intended to bring about or does bring about repayment of all or part of a consumer debt.
Notes of Decisions
Cited in
2
cases, 1988–2016 · leading case:
In Re Jordan, 91 B.R. 673 (Bankr. E.D. Pa. 1988).
In Re Jordan, 91 B.R. 673 (Bankr. E.D. Pa. 1988).
“, imposing late charges attributable solely to prior imposition of late charges, at 16 C.F.R. § 444.4 . The Commentary to Rule reveals a broad federal concern with late charge policy which duplicate penalties for late payments in prior months, as does the Claimant’s computation…”
Michelle Williams v. Lendmark Fin. Servs., 828 F.3d 309 (4th Cir. 2016).
· cites it 2× “Our conclusion with respect to the December 2010 and February 2011 payments is consistent with Williams’ argument that 16 C.F.R. § 444.4 , a regulation promulgated by the Federal Trade Commission, bars “pyramiding late fees and inflating inter- ‘ est.”
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