Justifying the Exorbitant Late Fee: A Study on the Art of Creative Accounting

We're glad you asked! Our research team has conducted an exhaustive study on the art of creative late-fee calculation. With the help of our team of highly-trained, highly-paid, and highly-caffeinated mathematicians, we've developed the following equation:

As you can see, the Late-Fee Formula (LFF) is deceptively simple:

LFF = (I + P + C) x T x 0.5 + B

Where:

• I = Interest on the original amount
• P = Penalty for late payment (a percentage of the original amount)
• C = Collection fees (a flat rate for each transaction)
• T = Time elapsed since the payment was due (in days)
• B = Bonus fees for being particularly inconvenient

Using our patented Late-Fee-ometer, we've calculated the optimal late-fee for your account. Please find the results below:

Late Fee Assessment

Your account has been charged $42.50 in late fees. This is 3.2 times the original amount due.

Breakdown

Interest: $10.00 (23.8% of the original amount)

Penalty: $15.00 (36.6% of the original amount)

Collection fee: $5.00 (a flat rate)

Bonus fees for being particularly inconvenient: $12.50

Time elapsed since payment due: 17 days

Recommendations

We suggest you pay the late fee immediately, or risk facing even more severe penalties, including but not limited to:

• Our highly-trained team of collection agents will call you repeatedly until you answer
• Your credit score will be lowered, causing you to be denied credit for the rest of your life
• We will send you to collections, where you will be forced to listen to our hold music on repeat

For more information on our Late-Fee Collection Agency, visit /subpages/late-fee-collection-agency

Or, if you're feeling particularly brave, you may wish to dispute our late fee. Please contact our Late-Fee Dispute Form for more information.