Why did my payday lender charge me a late fee or a non-sufficient funds (NSF) fee?

Tip

If you have questions about any fees, charges, or how your payments have been allocated, you can request a payment history, amortization schedule, and look at your loan file.

Payday loans often include a number of potential charges or fees, including fees if your loan isn’t paid in full when it’s due. If the lender attempts to pull money from your account on the due date and you don’t have enough funds in your account to cover it, you may be charged a late fee and a returned payment fee by the lender as well as a non-sufficient funds (NSF) fee by your bank or credit union, depending on your state law and your loan agreement.

While some lenders require you to repay your loan in cash at their store, they likely required you to provide a post-dated check to the lender or an ACH or electronic transfer authorization in case the loan wasn’t repaid. If you do not have enough money in your account when the lender attempts to repay itself, your bank or credit union may cover the payment and charge you an overdraft fee. If your bank or credit union does not cover the payment, the loan will not be paid, and you might be charged a “bounced check” or NSF fee by your bank or credit union and a late fee and a returned payment fee by the lender.

Before you agree to a payday loan, review your loan agreement closely, and make sure you understand what fees the lender could charge. Your state’s laws may also restrict what fees payday lenders can be charged, including how many times you can be charged and how much.

If you experience problems with a payday loan, contact your state regulator or attorney general . You can also submit a complaint to the CFPB onlineor by calling (855) 411-2372.

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