National Credit Union Administration |
 | Sec. 706.4 Late charges.
(a) In connection with collecting a debt arising out of an extension
of credit to a consumer, it is an unfair act or practice for a Federal
credit union, directly or indirectly, to levy or collect any delinquency
charge on a payment, which payment is otherwise a full payment for the
applicable period and is paid on its due date or within an applicable
grace period, when the only delinquency is attributable to late fee(s)
or delinquency charge(s) assessed on earlier installment(s).
(b) For purposes of this section, ''collecting a debt'' means any
activity other than the use of judicial process that is intended to
bring about or does bring about repayment of all or part of a consumer
debt.
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