diff --git a/htlcswitch/link.go b/htlcswitch/link.go
index 8eca6de7..bd3bdf69 100644
--- a/htlcswitch/link.go
+++ b/htlcswitch/link.go
@@ -483,6 +483,8 @@ out:
 // Switch. Possible messages sent by the switch include requests to forward new
 // HTLCs, timeout previously cleared HTLCs, and finally to settle currently
 // cleared HTLCs with the upstream peer.
+//
+// TODO(roasbeef): add sync ntfn to ensure switch always has consistent view?
 func (l *channelLink) handleDownStreamPkt(pkt *htlcPacket, isReProcess bool) {
 	var isSettle bool
 	switch htlc := pkt.htlc.(type) {
@@ -497,8 +499,6 @@ func (l *channelLink) handleDownStreamPkt(pkt *htlcPacket, isReProcess bool) {
 
 			// The channels spare bandwidth is fully allocated, so
 			// we'll put this HTLC into the overflow queue.
-			case lnwallet.ErrInsufficientBalance:
-				fallthrough
 			case lnwallet.ErrMaxHTLCNumber:
 				log.Infof("Downstream htlc add update with "+
 					"payment hash(%x) have been added to "+
diff --git a/htlcswitch/switch.go b/htlcswitch/switch.go
index 4c74ecfc..f1c99c62 100644
--- a/htlcswitch/switch.go
+++ b/htlcswitch/switch.go
@@ -389,6 +389,8 @@ func (s *Switch) handleLocalDispatch(payment *pendingPayment, packet *htlcPacket
 		// we're unable to then we'll bail early.
 		failure, err := payment.deobfuscator.Deobfuscate(htlc.Reason)
 		if err != nil {
+			// TODO(roasbeef): can happen in case of local error in
+			// link pkt handling
 			userErr = errors.Errorf("unable to de-obfuscate "+
 				"onion failure, htlc with hash(%x): %v",
 				payment.paymentHash[:], err)
diff --git a/lnd_test.go b/lnd_test.go
index f14119ee..e30d5a93 100644
--- a/lnd_test.go
+++ b/lnd_test.go
@@ -3133,25 +3133,21 @@ func testAsyncPayments(net *networkHarness, t *harnessTest) {
 		}
 	}
 
-	// We should receive one insufficient capacity error, because we are
-	// sending on one invoice bigger.
+	// We should receive one insufficient capacity error, because we sent
+	// one more payment than we can actually handle with the current
+	// channel capacity.
 	errorReceived := false
 	for i := 0; i < numInvoices; i++ {
 		if resp, err := alicePayStream.Recv(); err != nil {
 			t.Fatalf("payment stream have been closed: %v", err)
 		} else if resp.PaymentError != "" {
-			if strings.Contains(resp.PaymentError,
-				lnwire.CodeTemporaryChannelFailure.String()) {
-				if errorReceived {
-					t.Fatalf("redundant payment "+
-						"error: %v", resp.PaymentError)
-				}
-
-				errorReceived = true
-				continue
+			if errorReceived {
+				t.Fatalf("redundant payment error: %v",
+					resp.PaymentError)
 			}
 
-			t.Fatalf("unable to send payment: %v", resp.PaymentError)
+			errorReceived = true
+			continue
 		}
 	}