Common use of Default interest and default fees Clause in Contracts

Default interest and default fees. If an Event of Default occurs under clause 11.2(a) of the General Terms, or if at any time the Maximum Amount or Maximum Credit Limit is exceeded, and while the relevant Event continues, you may be charged Interest at the Default Rate on the unpaid amount or excess, as the case may be, and be charged the Fees as specified below. The Default Rate is 3.00 % per annum above the Annual Interest Rate A default fee of $5.00 is charged for any breach by you under this agreement or if we enforce this Agreement. The default fees and charges compensate us for the costs incurred by us in connection with enforcement or the remedy of a breach under this Agreement. Such costs could include debt collection and repossession fees.