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

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

In the Northwest Territories, similar to the rest of Canada, lenders for car loans consistently apply late payment fees if a scheduled payment is missed. Typically, a grace period, often ranging from 5 to 10 days, is provided after the due date before the fee is assessed. It is a legal requirement that all late fees, including their specific amount and the conditions under which they are charged, must be explicitly and clearly disclosed within your car loan agreement, adhering to consumer protection principles in NT. For 2025, with potentially tighter credit markets and higher interest rates, lenders may be less lenient, making it even more crucial to avoid missed payments. This matters significantly because, beyond the immediate financial burden of the fee, late payments are reported to credit bureaus, negatively impacting your credit score. A damaged credit score can lead to higher interest rates on future loans, difficulty securing new credit, and, in severe cases of repeated delinquency, can escalate to default and potential vehicle repossession, creating substantial long-term financial hardship.

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