What Fees Can Be Charged If I Can’t Repay My Payday Loan?

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I find myself in a difficult situation. Previous month I got a payday loan, expecting to pay it back from my next paycheck. But my employer delays my salary this month. Thus, on my payday, I will have no money to cover the loan. My question is, what types of fees can I be charged in this situation? What happens if you don’t pay a loan company back in the end?
– Jane


Having an insufficient amount of money in your account can be a real challenge when it comes to paying back a payday loan. Payday Loans are known as high-interest financial products that need to be handled carefully. The risks related to not paying back your payday loans derive from the possibility of starting a debt spiral and not being able to get out of the debt trap. The rollover should be your last option!

Types of Fees

Various types of fees and charges can be applied if you do not have sufficient funds in your account to cover the amount of your loan plus interest on the due date. Here are the main types of fees that a lender can charge:

  • Late fees. These are fees which the lender charges you for not paying off your loan in full and on time.
  • Returned payment fees. This is another type of fee which the lender can charge you due to the lack of money in your bank account to cover the amount the lender has tried to withdraw.
  • Non-sufficient funds fees. Abbreviated "NSF" fees, banks and credit unions charge these fees when the customer has insufficient funds in their bank account to cover a withdrawal.
  • Overdraft fees. If you allow overdraft payments on your account, you could be charged an overdraft fee by your bank or credit union.

Keep in Mind!
Be aware that if you are overdrawn on your account balance, your bank or credit union could decide to charge you a fee every day until your balance is back at the minimum. This is not a fee directly applied by the lender, but it can still impact your budget if not taken into consideration.

State Restrictions Related to Payday Loan Fees

As to your lender's fees, these may be restricted by your State in terms of an amount an of how many times a specific type of fee can be charged to an individual customer. In order to avoid predatory lending, you should check the legal status of payday loans by state and see if there aren't any limiting provisions related to the maximum finance rates and fees, and the number of rollovers permitted.

Be careful!
Be sure to look this information up so that you are aware of your rights and can take action if a lender charges you more fees than are legally permitted.

Reviewed by: Casey Bond
Date Reviewed: Jul 16, 2019

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The answer on this page is provided in collaboration with some of our trusted lenders who are proud members of the Online Lender's Alliance. The purpose of the provided answers is to inform the consumers about the specifics of online lending. It should not be treated as legal advice or regulatory guidance. The information is updated periodically and may include links or references to third-party resources or content. SDL365 does not endorse any third-party, nor does it guarantee the accuracy of the third-party information. We encourage you to consult other resources that might serve your needs and take into account your particular situation.


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