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In AB, what should I know about late payment fees for car loans?
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Car Loan Glossary • ab

In AB, what should I know about late payment fees for car loans?

In Alberta, car loan lenders typically impose late payment fees if your scheduled payment is not received by the due date, usually after a grace period of 5 to 10 days. These specific fees, which can be a flat charge (e.g., $25-$50) or a percentage of the overdue amount, are not provincially standardized but must be fully disclosed and agreed upon in your original loan contract, in line with Alberta's consumer protection legislation. It is imperative to review your agreement thoroughly to understand these terms. Beyond the immediate financial penalty, late payments are reported to national credit bureaus, significantly damaging your credit score and making it more challenging and expensive to secure future financing, especially in the evolving credit market conditions anticipated for 2025. Consistently missing payments can also lead to more severe consequences, including default and potential vehicle repossession. If you foresee any difficulty in making a payment, proactively contacting your lender is always the best course of action to discuss potential solutions and mitigate negative impacts.

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Related Topics: ab province topic

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