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    When can late payment interest start on a bill in Finland?

    Interest rules for late consumer payments.

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    Short answer

    According to KKV, late payment interest may start right after the due date if it was agreed in advance. If not, it may start 30 days after the invoice or payment demand was sent. The invoice must state the interest rate and the date from which it runs. The rate is 7 percentage points above the Bank of Finland reference rate, which is set twice a year. KKV also notes that invoices usually give at least two weeks between sending and the due date.

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    Why

    1. KKV says interest may start right after the due date if agreed in advance.
    2. Otherwise it may start 30 days after the invoice or demand was sent.
    3. The invoice must state the rate and the start date.

    Details

    For loans taken from 1 February 2010 onward, KKV explains that the loan's own interest may be charged for up to 180 days after the whole loan falls due, instead of late payment interest.

    Tip

    If you cannot pay on time, contact the creditor before the due date and ask for a new date.

    What may differ

    Collection fees are charged in addition to interest. They have their own caps.

    Common misconception

    Late payment interest always starts the day after the due date.

    What actually happens

    Without prior agreement, it can start only 30 days after the bill or demand was sent.

    People also ask

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    Sources

    This answer is for reference only. Consumer rules can change and cases differ, so check KKV or the Consumer Advisory Services.

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