Lake Indiana
January 16th, 2011
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I live in Norhwest Indiana, Lake County, is $300 a month in late rental fees legal on a 779.00 rent payment?
Unfortunately, there’s no clear dividing line between legal liquidated damages and illegal penalties. Some judges have said that a $1 a day late charge on $300 a month rent was an illegal penalty, and others have said a 10% late fee is illegal. (The Illinois law on car loans, for example, limits late fees to 5% of the missed payment.) I think there’s a good chance your $10 a day late charge is an illegal penalty, but it’s really up to a judge to decide.