Can a Late Payment Fees Charges on Partial Payment?
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In case a cardholder makes partial payment, can a card-issuer charge interest/levy late payment charges on the total amount due?
In case a cardholder does not clear the total amount due within the payment due date, interest free credit period will be lost, and interest may be levied from the date of transaction on the outstanding amount (adjusted for payments/refunds/reversed transactions as and when credited) and not on the total amount due.
Also Know – Can a Bank Charges interest on the Credit Card unpaid taxes ?
Further, late payment fee and other charges relating to delay in payment shall be levied only on the outstanding amount (adjusted for payments/refunds/reversed transactions as and when credited) after the payment due date and not on the total amount due.
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