What Happens If You Miss Payday Loan Repayment

Missing a payday loan due date can create bank fees, lender fees, collection activity and stress. The exact consequences depend on your loan agreement and state law.

Possible consequences

• Returned payment: your bank may charge a nonsufficient funds or overdraft fee.
• Lender fee: the lender may charge a late or returned-payment fee if allowed by law.
• Collections: the account may be sent to internal or third-party collections.
• Credit impact: payday lenders often do not report on-time payments, but collections may appear on credit reports.
• Rollover risk: renewing or re-borrowing can increase the total cost and create a debt cycle.

What to do before the due date

1. Contact the lender in writing and ask about hardship options.
2. Ask whether repayment can be split into installments without additional unlawful fees.
3. Check your state law for rollover and collection restrictions.
4. Talk to your bank if an ACH debit may cause overdraft fees.
5. Contact a nonprofit credit counselor if you have multiple payday loans.

Know your rights

Debt collectors must follow federal and state collection rules. If you believe a lender or collector is harassing you, threatening illegal action or debiting your account without authorization, consider submitting a complaint to the CFPB or your state regulator.

• CFPB debt collection resources
• Submit a CFPB complaint
• Find nonprofit credit counseling through NFCC