what is a late fee 
a late fee is a charge that lenders and other companies impose on you when you fail to make an on time payment you may face late fees if you re late making payments on a loan a credit card or any other type of financial agreement such as an insurance policy or rental contract late fees are designed to encourage you to pay by the due date and should be specified in the contract or other agreement lenders must notify you about any changes to late fees in advance and in writing 