West Virginia Mortgage Law Practice Test

A late fee imposed on a consumer loan in West Virginia may not exceed what percentage of the unpaid amount of the installment?

1. 2%

2. 4%

3. 5%

4. 3%

The correct answer is: 2%

In West Virginia, the maximum late fee that can be charged on a consumer loan is 2% of the unpaid installment amount. This means that if a borrower is late on a payment for their loan, the lender can only charge them a maximum of 2% of the outstanding balance as a late fee. Option B, C, and D are incorrect because they all exceed the 2% limit set by West Virginia law. The lender is not allowed to charge a higher percentage than the maximum limit, so options B, C, and D would all be considered incorrect according to state regulations. It is important to understand your rights as a consumer and compare any late fees charged to the state's legal limits.