Multiple choice technology mainframe

What is Late Fee?

  1. It is the fee that will be charged if the customers don’t pay the Minimum due amount that was requested in the statement within the due date specified.

  2. It is the fee that will be charged if the customers don’t pay the Outstanding Balance that was requested in the statement within the due date specified.

  3. It is the fee that will be charged if the customers don’t pay the Outstanding Balance that was requested in the statement before the next Statement Day

  4. It is the fee that will be charged if the customers don’t pay the Minimum due amount that was requested in the statement before the next Statement Day
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Explanation

A late fee is charged to a customer's account if they fail to pay at least the Minimum Due Amount by the specified payment due date. Failing to pay the full outstanding balance does not trigger a late fee (though it may trigger interest), and the grace period ends on the due date, not the next statement day.

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