Can you be charged a late fee on sales tax? Posted on June 01, 2011
I have a loan. The statement is broken down to show - Lease payment 1600.00, sales tax 86.00, lease payment 120.00. The 120.00 was a loan after the date of the contract to get the truck worked on. It was not added to the contract but was simply a fax to me stating I would pay 120.00 each month for 12 months. No date due, no late fees if late. I was just a fax that we both signed and a check for 1200.00. Now each month if I am late I get charged 10% of the lease payment (160.00), a flat 25.00 for the sales tax and a flat 25.00 for the small loan portion. Is this legal? I have never heard of breaking the lease and sales tax apart and then charging a late fee on each one. If I am to understand that normally I get a late fee on everything then why should I not be charged 10% across the board for any late fee instead of 25.00 for the two smaller ones and 10% for the larger one. I have read the contract over and over and see nothing as to the fact that they can charge the extra amounts. The contract states if payment, rent or otherwise is late they can impose a late fee of 10% of the amount past due (or the maximum amount permitted by applicable law if less). So here I get they can charge the late fee on the 120.00 but should it not be 10% (12.00) and not 25.00? In any event is it legal to charge a late fee on the sales tax?
Click to View More Answers: