If you are a person who has carried out any type of high-value economic activity or shipments of any kind, you have surely come across the term late fee. It is a penalty imposed on someone when this delay in repaying a debt exceeds the time limit. In this opportunity we will tell you everything you need to know about the collection of tax for delaylet us begin.
What does the term late fee mean?
The term late fee It refers to the penalty charge that is added to any person who has failed to pay a debt within its time limit. This means that if you applied for any kind of loan, such as a credit adjustment, but did not pay it off on time, you will have to pay an additional amount.
This clause is present in all types of contracts, for example. If the Spanish government decides to lend an amount of money to the Italian state and it does not settle its entire debt before the term. The creditor of the debt will have to receive an additional sum of money from the debtor, established on a standard electronic or regular schedule.
The law of each country usually establishes a maximum credit rate that can be added to the debt. For example, in the Italian, Portuguese, English, German and French states, these interest rates vary. It is also possible that the contract establishes justification clauses to excuse the person or entity from the payment of a late fee.
What is late fee credit adjustment? Translation and explanation
There are many other terms that are handled internationally in their Anglo-Saxon terminology, such as late fee credit adjustment. This is the interest rate that must be paid by a person who fails to pay their outstanding amounts on a credit card.
In addition to having a penalty when paying off your debt, the bank or entity in charge of the line of credit may reduce the amount available for future operations. This means that if your credit card has a limit of $1,000, but you default, it can be reduced to $850.
This penalty is carried out by all kinds of entities as a disciplinary measure for users who want to abuse the credit system. Likewise, the fulfillment of debts on time or before the limit may result in a greater number of credits.
Late fee credit adjustment In Spanish, it means adjustment of credits for late payment, therefore, it can be reduced if necessary. For practical purposes, a user who complies or fails to pay within the deadline will see consequences according to the act, depending on whether it was positive or negative.
What is a late payment fee?
Just as with the first example, a penalty can be established for paying a debt at a late date. This other course is known by its meaning in English as late payment feesuch as making payments outside the limit solar calendar.
A famous company that applies this policy to its consumers is Verizon, which offers its users a credit system to buy all types of wireless technology. Well, within the purchase contracts of this company, different scenarios are established that present penalties for the debtor.
Among these assumptions we can find the late payment fee that are imposed on the user who does not comply with the payment of the debt in a set time. Although some terms are only available in English, pages like Linguee can help you decipher them very easily.