According to Money Super Market, when someone does not pay back a payday loan, interest and late charges are accrued and the debt will be sent to a debt collection agency. Payday lenders usually send the debt to a debt collection agency after a period of about two months.
Borrowers can talk to payday lenders and usually work out a payment plan, according to Money Super Market. Payday lenders also have the responsibility to treat borrowers fairly if the borrowers are experienced trouble paying back the loan. Consumers who feel unfairly treated should complain by writing a letter to the lender.