Code of Massachusetts Regulations
955 CMR - INSURANCE PREMIUM FINANCE AGENCY
Title 955 CMR 2.00 - The Financing Of Insurance Premiums
Section 2.05 - Default Charges

In the event of a default of more than ten days in the payment in full of any scheduled installment, a default charge may be made and collected in an amount not in excess of five percent of each installment in default. Such charge may not be collected more than once for the same default and may be collected at the time of default or at any time thereafter. It may be deducted from any payment received after a default occurs, but if this results in the default of a subsequent installment, no charge shall be made for such subsequent default. When an agreement is primarily for personal, family or household purposes, the maximum allowable default charge is $5.00.