Q: What should my late fee penalty be on a title loan?
If I have a title loan in the state of Texas for the principal amount of $5000 & the amount to renew is $750 every month…& in the contract it states the following: $7.50 or 5% of the scheduled payment amount (whichever amount is greater), for any payment to Lender not paid after the 10th day after the date on which the payment is due. What should the late fee percentage be based upon? Should it be around $250
Also, if the amount they have charged is incorrect but you’ve signed previous contracts several times before with the incorrect amount and also you have a current unpaid late fee also what would you suggest to do next?
A: 5% of $750.00 is $37.50. This assumes that what you call "the amount to renew" is the same thing as "the scheduled payment amount."
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