[Code of Federal Regulations]
[Title 12, Volume 3, Parts 220 to 299]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR227.15]

[Page 455]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 227--UNFAIR OR DECEPTIVE ACTS OR PRACTICES (REGULATION AA)--Table of Contents
 
                    Subpart B--Credit Practices Rule
 
Sec. 227.15  Unfair late charges.

    (a) In connection with collecting a debt arising out of an extension 
of credit to a consumer, it is an unfair act or practice for a bank to 
levy or collect any delinquency charge on a payment, when the only 
delinquency is attributable to late fees or delinquency charges assessed 
on earlier installments, and the payment is otherwise a full payment for 
the applicable period and is paid on its due date or within an 
applicable grace period.
    (b) For the purposes of this section, collecting a debt means any 
activity, other than the use of judicial process, that is intended to 
bring about or does bring about repayment of all or part of money due 
(or alleged to be due) from a consumer.