If a loan payment is due by the 10th of the month and is not paid by the 11th, the payment will be considered past due. Depending on the policy of the lender, the borrower will either immediately be charged a late fee or will enter a grace period. If, for example, there is a grace period of 10 days, the borrower would not be charged a late fee until the 21st of the month. If the payment is still not made by the end of the grace period, late fees will then be applied.
How a customer is treated on a past-due payment will often come down to their payment history; if there is a pattern of late payments, the grace period may be shortened or removed.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
past due — ˌpast ˈdue adverb ACCOUNTING past the time when a debt or payment should have been paid: • Nationwide, companies paid their bills an average of nine days past due. * * * past due UK US adjective ACCOUNTING ► past the date on which a payment… … Financial and business terms
past due — I adverb in arrears, in debt, in default, outstanding, overdrawn, overdue II index delinquent (overdue), late (tardy), outstanding (unpaid … Law dictionary
past-due — ˈ ̷ ̷| ̷ ̷ adjective : overdue * * * past due «PAST DOO, DYOO», adjective. due some time ago; past maturity: »past due accounts … Useful english dictionary
past due — Synonyms and related words: ahead of time, anachronistic, antedated, beforehand, behind time, behindhand, dated, early, foredated, late, metachronistic, misdated, mistimed, out of date, out of season, overdue, parachronistic, postdated,… … Moby Thesaurus
past due — Overdue. Having run beyond maturity. See overdue paper … Ballentine's law dictionary
past due bill — ➔ bill1 … Financial and business terms
Past Due Balance Method — A system for calculating interest charges based on any outstanding loan or credit charges that remain unpaid after a certain date. The past due balance method is used by credit companies whereby credit card holders have until a specified date to… … Investment dictionary
past-due loan — A banking loan on which the interest is more than 90 days overdue. After this grace period has elapsed, the borrower becomes liable for late charges … Accounting dictionary
past-due loan — A banking loan on which the interest is more than 90 days overdue. After this grace period has elapsed, the borrower becomes liable for late charges … Big dictionary of business and management
payments past due — index arrears Burton s Legal Thesaurus. William C. Burton. 2006 … Law dictionary