A late fee, also known as an overdue fine, late fine, or past due fee, is a charge fined against a client by a company or organization for not paying a bill or returning a rented or borrowed item by its due date. Its use is most commonly associated with businesses like creditors, video rental outlets and libraries. Late fees are generally calculated on a per day, per item basis.
Organizations encourage the payment of late fees by suspending a client's borrowing or rental privileges until accumulated fees are paid, sometimes after these fees have exceeded a certain level. Late fees are issued to people who do not pay on time and don't honor a lease or obligation for which they are responsible.