§ 24-7-5-5 — Late charges or delinquency fees

(a) The parties to a rental purchase agreement
may contract for late charges or delinquency fees as follows:
(1) For agreements with monthly renewal dates, a late charge not
exceeding eight dollars ($8) may be assessed on any rental
payment not made within five (5) days after:
(A) the renewal date for the agreement; or
(B) the return of the property is required under the rental
purchase agreement.
(2) For agreements with weekly or biweekly renewal dates, a late
charge not exceeding the amount specified in subsection (e) may
be assessed on any rental payments not made within two (2) days
after:
(A) the renewal date for the agreement; or
(B) the return of the property is required under the agreement.
(b) A late charge on a rental purchase agreement may be assessed
only once on any accrued regular rental payment, no matter how long
it remains unpaid.
(c) A late charge may be collected at any time after it accrues.
(d) A late charge may not be assessed against a regular rental
payment that is timely made, even though an earlier late charge has not
been paid in full.
(e) The amount that may be assessed under subsection (a)(2) is as
follows:
(1) Three dollars ($3) for any payment not greater than twenty
dollars ($20).
(2) Five dollars ($5) for any payment greater than twenty dollars
($20).

Legislative History

As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990, SEC.8; P.L.14-1992, SEC.63; P.L.213-2007, SEC.30; P.L.217-2007, SEC.29; P.L.69-2018, SEC.39; P.L.176-2019, SEC.34.