What is continuous payment authority?
A 'continuous payment authority' (CPA) is when you let a company take regular payments from your bank account.
This is also sometimes called a 'recurring transaction'.
You do this by giving them your credit or debit card details.
They work like direct debits, but they:
- Can be hard to cancel and
- Can change amount and payment date
Payday lenders can only make two attempts to take money from your bank account. Unless you agree a 'rollover'.
What are rollovers?
A rollover lets the company take money you owe this month out of your account next month.
This can sound good, but it often has extra costs and charges.
Rules state that lenders:
- Cannot rollover an outstanding payday loan balance more than twice
- Must send you a debt information sheet with contact details for help