Returned payment fee
Cards & borrowingA fee charged when a payment fails due to insufficient funds.
Overview
It can be charged by the lender or your bank.
It often occurs when direct debits bounce.
Why it matters
- It adds costs to your debt.
- It can lead to late payment markers.
- It signals financial strain.
FAQs
Does a returned payment affect my credit score?
The failed payment can lead to a late payment marker if reported.
Can I avoid returned payments?
Keep a buffer in your account and set up alerts.
Related terms
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