Penalties on Credit Card Holders if they Miss Payments
1. Is It Allowed to Charge a Late Penalty on a Credit Card Holder if He Misses a Payment? Question: Is it allowed to impose a late penalty on the cardholder in case he defaults on payment and his account is overdrawn? Answer: It is not allowed to impose a late penalty on the cardholder. However, KFH may cancel the VISA card if the cardholder defaults on payment and his account is repeatedly overdrawn. Issuer: Kuwait Finance House