What is the difference between a fee and a charge? What types of fees could a consumer potentially see? - Common Consumer FAQs (2024)

A fee can be looked at similar to a penalty. While there are no fees attached to your contract, you can be fined for late payments or a returned payment.

A charge on the other hand, is an amount that you acknowledge you are purchasing. At origination, the amount you finance is considered a charge.

There are two types of fees/penalties that can occur over the span of your contract: Late Payment Fee and Returned Payment/NSF Fee.

Late Payment Fee:

If the consumer does not pay at least the minimum payment due for a billing cycle by its due date or any later date that may be established by applicable law, we will charge the following late payment fee to their account: If all or any portion of a payment is not paid within 15 days of its due date, the consumer will be charged a late fee equal to 5% of the payment or $15, whichever is greater, but not to exceed $50; if the payment is $25 or less, the late fee will not exceed $5.

Returned Payment/NSF Fee:

If any account payment made or attempted is returned unpaid to us for any reason, we will charge a returned payment fee of $25 to their account, subject to any legally required notices and any limitations of applicable law.