cascading late charges

cascading late charges
The practice of imposing late charges for previously unpaid late charges. Federal Regulation AA prohibits this practice for consumer loans. American Banker Glossary

Financial and business terms. 2012.

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  • late charges — Charges that are assessed for late payments of principal or interest on a loan. Late charges may be determined as a percentage applied to the unremitted payment or as a fixed dollar amount. Some states limit late charges. Federal Regulation AA… …   Financial and business terms

  • Regulation AA — Federal Reserve Regulation titled Unfair or Deceptive Acts or Practices. Provides for consumer complaints against banks and prohibits certain practices. See cascading late charges and late charges. American Banker Glossary …   Financial and business terms

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