If you fail to make the repayments on a payday loan, the lender will continue to try to take the funds from your bank account. The longer you have the debt outstanding, the more costs you will incur. Payday loan lenders charge late payment fees, transaction fees and additional interest on unpaid debts. If they fail to receive the payment after a certain amount of time, usually 60 days, they could pass the debt onto a debt collector. Debt collectors are often much more aggressive with their approach to outstanding loans and will regularly call and send multiple letters to your home. If payment is still not made and no alternative payment plan has been agreed upon, it could end up going to court and result in the repossession of your belongings.
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