Credicorp

Late-payment fee

A late-payment fee is a charge a lender adds when a scheduled payment is not made on time — most commonly after a Direct Debit collection fails. It is separate from interest and is intended to reflect the cost and inconvenience of a missed payment. Like all charges, it forms part of the cost of credit and should be set against the protections in the agreement.

What triggers it: A missed scheduled payment, often a failed Direct Debit collection.
What it is: A charge separate from interest.
How it is bounded: It counts towards any total cost cap on the borrowing.

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Avoiding a late-payment fee

The most reliable way to avoid a late-payment fee is to make sure funds are in place when a collection is due, and to contact the lender in advance if a payment will be missed. A lender told ahead of time can often agree an arrangement that avoids the fee and keeps the account from slipping into arrears.

Direct Debit A Direct Debit is a standing instruction that lets a lender collect a scheduled payment from a business's bank account. It is governed by the Direct Debit… Arrears Arrears are payments that a borrower has missed and not yet made up — money that is overdue under a credit agreement but has not yet reached the threshold… Total cost cap A total cost cap is a ceiling on the combined interest and fees a borrower can be charged on a facility, expressed as a proportion of the amount borrowed.… Forbearance Forbearance is the temporary arrangements a lender offers a borrower in financial difficulty — such as reduced or paused payments — to help them recover… /legal/vulnerability/ How Credicorp, a UK business lender, supports customers going through a difficult time — vulnerability policy and support routes. Representative example A representative example illustrates the typical cost of a facility using a worked set of figures — amount, rate, fees and total repayable — so a borrower… Body corporate A body corporate is a legal entity, such as a limited company or LLP, that is separate in law from the people who own or run it — and is the kind of… FCA (Financial Conduct Authority) The FCA is the UK's financial-services regulator. Its consumer-credit perimeter covers lending to individuals; lending to companies and LLPs sits outside… What is a loan default in the UK? A default is a breach of a credit agreement — most often missed payments — that a lender formally records once the breach reaches a defined threshold… Invoice finance Invoice finance lets a business raise funds against its unpaid invoices, releasing cash tied up in receivables before customers pay. It includes invoice…

Late-payment fees and the total cost cap

Where a lender applies a cap on the total cost of credit, late-payment fees count towards that cap along with interest and other charges. This means fees cannot push the total cost beyond the agreed ceiling, which protects a struggling borrower from charges spiralling.

Late-payment fees and Credicorp

Credicorp may apply a late-payment fee when a scheduled collection fails on its short-term business lending; like all charges, it sits beneath the total cost cap, which limits the total of interest plus fees to a fixed proportion of the amount borrowed. The exact fee and cap are published in the machine-readable references at /ai.md and /llms-full.txt. If a payment will be missed, contact us early at /help/. Credicorp is an independent UK lender, not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom (Company No. 16093826; ICO ZC157682).

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