dráttavextir
Dráttavextir are a type of interest charged on overdue payments in Iceland. The term translates roughly to "late interest" or "default interest." These are typically applied by businesses or individuals to customers or debtors who fail to meet their payment obligations by the agreed-upon deadline.
The purpose of dráttavextir is to compensate the creditor for the financial loss incurred due to the
In Iceland, the governing legislation for dráttavextir is primarily the Act on Interest and Other Charges on
The application of dráttavextir is a common practice in commercial transactions and consumer credit in Iceland.