Is there a limit on delinquency charges/late fees that can be charged on loans in the State of West Virginia?
There is a delinquency charge limit on installment loans made in West Virginia by West Virginia headquartered institutions. For Installment Loans, the amount of the late charge is determined by whether or not your loan is a precomputed or nonprecomputed loan. PRECOMPUTED LOANS – A loan is considered to be a precomputed installment loan if the payments are a scheduled, fixed amount that includes principal and interest AND the amount of interest payments will not vary as a result of the actual dates payments are made. Traditional mortgage loans are a good example of a precomputed loan. No matter when your payment is made, the amount of interest does not vary from a pre-determined schedule. Financial institutions may contract for a delinquency fee charge on precomputed loans in an amount of which is five (5) percent of the unpaid installment, not to exceed $15. NONPRECOMPUTED LOANS Nonprecomputed consumer loans are those loans that have installment payments that include interest and princ
