Late Payment Consequences

C

The correct answer is C. Finance charge.

A finance charge is a fee that a creditor charges a borrower for the use of credit or the extension of existing credit. This fee is added to the borrower's balance and is usually calculated as a percentage of the outstanding balance. When a borrower fails to make full payment on their previous bill, they are typically charged a finance charge on the remaining balance.

Finance charges are commonly applied to credit card balances, loans, and other forms of credit. The amount of the finance charge will vary depending on the interest rate and the length of time that the borrower carries the balance. Finance charges can be a significant cost to borrowers who carry high balances, so it is important to pay bills in full and on time to avoid these charges.

Discounts are reductions in the price of goods or services. They are typically offered to customers who pay in full or who meet certain conditions. Reward points are a form of loyalty program that rewards customers for their purchases. Membership fees are charges that are paid to join or maintain membership in an organization or group.