My question concerns late fees on loans. We have both state and national banks in our town. I have noticed that the state banks are charging a higher late fee than the national banks. Are national banks limited on how much they can charge? If not, why would they not charge the maximum allowed?
Late fees are determined at the state level just as interest rates are, for the most part. National banks look to the state laws just as the state banks do. The national banks in your area may have opted for lower fees to be more competitive and/or don't see this as a significant source of revenue.
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Late fees are determined at the state level just as interest rates are, for the most part. National banks look to the state laws just as the state banks do. The national banks in your area may have opted for lower fees to be more competitive and/or don't see this as a significant source of revenue.
