24 Hour Loans glossary of financial terms

Arrears Fee

If you are in arrears with loans products (i.e. if you have not met one or more monthly repayments as you should) then you will probably be charged an arrears fee by your lender. These fees are generally charged every month when you are in arrears and are used to cover the administration costs of the lender in question. They will be charged every month, in most cases, until your account is back on track again. Arrears fees can be charged on most any loan product.

Arrears fees may not just be charged if you fail to meet your repayment schedule. They can generally also be charged for late payments as well. So, if you don?t make a loan payment on time one month, then you could well find that your lender can charge you an arrears fee to cover their administrative costs even though you ultimately made the monthly repayment in the end.