What is the term used to describe when a borrower cannot repay a payday loan by a due date and the lender allows the borrower to modify the loan?

The term that describes the situation where a borrower cannot repay a payday loan by the due date and the lender allows the borrower to modify the loan is "Sustained use." This concept highlights a borrower's continued reliance on payday loans, leading to modifications that may extend the repayment terms or increase the total cost of borrowing.

Understanding this term is crucial in the context of consumer financial protection, as it emphasizes the potential pitfalls of payday lending practices and the implications of loan modification for borrowers. Sustained use can create a cycle of debt, where borrowers find themselves repeatedly needing to adjust their loans rather than resolving them, ultimately impacting their financial stability.

The other options, while they may relate to borrowing practices, do not specifically address the notion of modifying a loan due to an inability to repay by the due date. This distinction underscores the significance of recognizing how sustained reliance on such financial products can lead to additional financial burdens for consumers.