Late Fees are assessed under what condition?

Late Fees are assessed under what condition?

• A. When a consumer does not pay on time.
• B. When a consumer pays on time.
• C. When a consumer pays off the balance in full.
• D. When a consumer opens a new account.

Answer: (A)

Late fees are penalties applied when a payment is not made by the due date. The fee is charged to encourage timely payments, so if you pay on time you typically avoid it. Paying the balance in full or opening a new account doesn’t trigger a late fee—the fee specifically comes from missing the payment deadline.

Late fees are penalties applied when a payment is not made by the due date. The fee is charged to encourage timely payments, so if you pay on time you typically avoid it. Paying the balance in full or opening a new account doesn’t trigger a late fee—the fee specifically comes from missing the payment deadline.