[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR444.4]

[Page 448]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 444_CREDIT PRACTICES--Table of Contents
 
Sec. 444.4  Late charges.

    (a) In connection with collecting a debt arising out of an extension 
of credit to a consumer in or affecting commerce, as commerce is defined 
in the Federal Trade Commission Act, it is an unfair act or practice 
within the meaning of section 5 of that Act for a creditor, directly or 
indirectly, to levy or collect any deliquency charge on a payment, which 
payment is otherwise a full payment for the applicable period and is 
paid on its due date or within an applicable grace period, when the only 
delinquency is attributable to late fee(s) or delinquency charge(s) 
assessed on earlier installment(s).
    (b) For 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 a consumer 
debt.