What is the limit for late fees under the Utah Consumer Credit Code?

The correct limit for late fees under the Utah Consumer Credit Code is $30 or 5% of the delinquent amount. This regulation is designed to protect consumers while ensuring that lenders can cover some of the costs associated with late payments. The law strikes a balance between enabling lenders to impose a fee that is reflective of the administrative burden caused by a late payment, while also capping the potential burden on consumers.

Understanding these parameters is crucial for both consumers and lenders. It allows consumers to be aware of the maximum amount they could be charged if they miss a payment, which can help them manage their finances more effectively. Moreover, lenders must operate within this established framework to maintain compliance with state regulations, ensuring fair treatment for borrowers in their lending practices.

Other values provided in the answer choices either exceed the established legal limits or fall below them, indicating that while they might aim to address the issue of consumer delinquency, they do not align with the specific provisions set forth by Utah law.