Most payday loans are repaid by the lender taking money straight from your debit card. You can stop that if you need to.
Need to know
- A continuous payment authority (CPA) lets a lender take payments from your debit card without asking each time.
- FCA rules limit how payday lenders use CPAs, including how many failed attempts they can make.
- You can cancel a CPA by contacting your bank or card provider, which must stop the payments.
- Cancelling a CPA doesn’t cancel the debt, so contact the lender about repaying another way.
When you take out a payday loan, the lender usually asks for your debit card details and permission to collect repayments automatically. That permission is a continuous payment authority, or CPA.
How a CPA works
On each due date, the lender requests the payment directly from your card. You don’t need to approve it each time. It’s convenient when you have the money, but it can leave you short for essentials if your balance is low.
FCA limits for payday lenders
Under FCA rules for high-cost short-term credit, lenders can’t use a CPA however they like:
- they can make no more than two unsuccessful attempts to collect a payment using a CPA
- they can’t use a CPA to take part payments
- they must explain how the CPA will be used before you agree
How to cancel a CPA
You can cancel a CPA by telling your bank or card provider. They must stop further payments to that lender, and you don’t need the lender’s agreement.
| Step | What to do |
|---|---|
| 1 | Contact your bank or card provider and ask them to cancel the CPA to the lender |
| 2 | Tell the lender you’ve cancelled it |
| 3 | Agree another way to repay, such as an affordable payment plan |
Important
Cancelling a CPA stops the payments, not the debt. Missing repayments can lead to charges, within the price cap, and damage to your credit file.
Helpful step
If you’re cancelling to protect money for rent, energy or council tax, speak to a free debt adviser at the same time. They can help you agree a plan with the lender. See our guide to struggling to repay.
Keeping control of repayments
Before borrowing, note every date a payment will be taken and make sure it won’t clash with other bills. If a lender takes payments you didn’t agree to, our guide to complaints and the Financial Ombudsman explains how to challenge it.
Your questions answered
Is a CPA the same as a direct debit?
No. A direct debit is set up through your bank and covered by the Direct Debit Guarantee. A CPA is set up with the lender using your card details.
Can the lender take money on a different date?
The lender should collect on the agreed dates. If money is taken in a way you didn’t agree to, contact your bank and the lender.
Why would I cancel a CPA?
Usually to protect money needed for priority bills, such as rent, energy or council tax, while you arrange an affordable plan.
This guide is general information, not financial advice. Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk. We don’t arrange loans or work with lenders. Before borrowing, check the lender is authorised on the FCA register, and consider free debt advice from MoneyHelper, StepChange, National Debtline or Citizens Advice.