Late payment fees: How much can you be charged for missing a payment?

It can be easy to miss a payment on a bill, sometimes it can simply slip your mind.

Or if you're struggling with the rising cost of living, you may not have had the money in your bank account to pay.

There is no single late payment fee that applies to every bill.

What happens next will depend on what you owe, who you owe it to and how late the payment is.

You could face a late or default charge or added interest, and with some products it could mean you lose promotional offers such as interest free periods.

A missed payment on a credit agreement can also be reported to credit reference agencies and affect your credit record.

However, there are rules in place that state how high charges can be.

Here's what you need to know about some of the most common late payments.

How much can you be charged for paying late?

The amount you can be charged for paying late depends on the bill.

Credit card

A default fee can be charged for failing to make the minimum repayment on time.

The maximum is generally £12.

If you don't clear the balance, you'll also get interest added to the outstanding balance.

Buy Now, Pay Later

A late fee could apply but it depends on the provider and agreement

Mortgage

A payment shortfall charge may apply, but regulated lenders must be able to justify it against reasonable additional administration costs.

Council Tax

Recovery action can follow missed payments and additional legal or enforcement costs can eventually be added

HMRC tax bill

Late-payment penalties and interest can apply

Energy bill

Arrears can build up and suppliers may take recovery action

Other credit agreements

Charges and interest depend on the terms of the agreement

Credit card late payment fees

Credit cards are one of the most common bills people can be charged for missing a payment.

A credit card company can charge a fee of around £12. If higher than this, the charge could be argued as unfair and you may be able to challenge it.

The fee isn't necessarily the only cost.

You will also continue to be charged interest under the terms of your credit agreement, while a missed payment could potentially be reported to credit reference agencies.

If you have missed a payment and are within a special interest-only period, you could also lose this.

If you've made paid late, try to pay as soon as you can and contact the card provider.

If you believe you've been charged incorrectly or unfairly, you can complain to the provider.

What happens if you miss a Buy Now, Pay Later payment?

Buy Now, Pay Later has new protections following the FCA's regulation of Deferred Payment Credit (DPC) from 15 July 2026.

For regulated DPC agreements, providers must give customers information before they take out an agreement, including how much any late fee will be.

If you miss a repayment, the provider must contact you and explain what the missed payment means, including any unpaid charges and potential consequences.

The exact late fee depends on the provider and the agreement so you'll need to check the terms of your arrangement.

The new FCA rules also require regulated providers to give support to customers who are struggling with repayments.

What should you do if you've missed a payment?

If you've just realised you've missed a payment, don't panic – but don't ignore it either.

1. Pay what you can as soon as possible

If you have the money available, making the payment quickly can prevent the situation from getting worse.

2. Contact the company

Tell them you've missed the payment and ask what you need to do to bring the account up to date.

If the missed payment was caused by a genuine mistake, you can also ask whether they will waive the charge as a gesture of goodwill.

3. Explain if you can't afford it

If you don't have enough money to pay, say so.

Lenders and other providers may have support options available, including repayment arrangements.

For regulated BNPL agreements, for example, FCA rules require providers to provide support when customers are struggling with repayments.

4. Check your credit report

If the missed payment relates to credit, check your credit files to see whether it has been reported.

If you believe the information is wrong, contact the lender and ask it to correct the record.

5. Don't borrow more simply to cover the payment

Taking out expensive credit to pay another bill can turn a short-term problem into a much bigger debt.

If you're struggling with several payments, free debt advice can help you work out which debts need dealing with first.

Where to get free debt advice

If you are feeling overwhelmed about the money that you owe, there are plenty of free resources for help.

 Money Helper and Step Change are both free resources that can help you prioritise which debts to focus on and recommend formal debt solutions if necessary.

We also have a better money habits guide which gives some tips on how you can reduce your spending and improve your budgeting skills.