late fees (pyramiding?)
My father leased some equipment for his business. He missed one payment in March, 1994 and thereafter, he made timely payments without making up the March payment. The lease contract says there is a one time late fee for delinquent payments, but the company has been crediting each new payment towards the previous month and assessing new late charges for every new month. Is this legal? The contract does not say that payments will be automatically credited to outstanding balances.
Asked on 4/29/98, 9:37 pm
1 Answer from Attorneys
Ken Koury
Kenneth P. Koury, Esq.
Yes, it is legal
Yes, it is legal. It is correct to apply payments to past due balances and that will make every payment late until he is current.
Answered on 5/20/98, 11:37 am
