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

In Nunavut, late payment fees for car loans are primarily governed by the terms explicitly stated in your credit agreement. Lenders are legally required under Nunavut's Consumer Protection Act to clearly disclose all fees, including late payment charges and any applicable grace periods, before you sign the contract. While there isn't a specific cap on late fee amounts in NU like some other provinces, these fees must be reasonable and not constitute an unconscionable penalty, especially when considering broader Canadian consumer protection principles and the Criminal Code's prohibition against usurious interest rates.

Understanding these fees is crucial because late payments not only incur additional costs, which can quickly compound, but also negatively impact your credit score, making future borrowing more expensive or difficult. In the current 2025 market, where financial prudence is key, consistent late payments can escalate the risk of default and potential vehicle repossession. Always review your loan agreement thoroughly, understand the grace period, and communicate proactively with your lender if you anticipate a payment delay to explore potential solutions.

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