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

Depending on your state law and your loan agreement, you might be charged a late fee as well as a returned payment fee by the lender and a non-sufficient funds (NSF) fee by your bank or credit union. Review your loan agreement closely to see what fees are included in the terms of your loan.

When you took out your payday loan, you probably gave a check to the lender or gave the lender permission to take money from your account when the loan was due.

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.

State laws vary on the fees that can be charged. Some states specify the number of times and the maximum amount a lender can charge for these types of fees. For more information on your state law, check the website of your state regulator or attorney general .

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.