Payday Loans – Cancelling a continuous or recurring payment

#debtline blog: Payday loan companies often take your credit or debit card details allowing them to take regular payments from your card until the loan is cleared. These payments are known as a ‘recurring transaction’ or ‘continuous payment authority’ (CPA).

They work like a direct debits, but can be very difficult to cancel and they don’t offer the same guarantee if the amount or payment date changes. This means companies can take as much as they like without giving you notice. 

Payday loan companies have often refuse to stop taking payments, even when they have been asked  to.
Financial Services Authority (FSA) confirmed that under the payments services regulations  a customer can cancel a continuous payment authority by contacting their bank or the card issuer.
In order to cancel the payment you must confirm to the bank that the that you wish the payment to be stopped, the payments then becomes an ‘unauthorised transaction’ and the bank shouldn’t make any further payments.  If the bank does make a payment they’re in breach of the PSR and you’re entitled to an immediate refund (or slightly later if it’s a credit card payment).
Are you have difficulty making payments to a payday loan or any other type of debt. Please contact Twinpier
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