What is a Continuous Payment Authority?

Have you recently been signed up to CPA and you want to know more about what this means, and how it could affect your finances? Our guide details everything you need to know about CPAs, as well as a detailed review of how Moneyboat uses CPAs with our customers.

What does Continuous Payment Authority mean?

A CPA refers to a Continuous Payment Authority. This is a type of recurring card payment that can be set up using your debit or credit card. A signed and agreed CPA gives a company permission to automatically deduct money from your account on a weekly or monthly basis.

CPAs in the UK are commonly used for payday loan repayments. For example, Moneyboat makes use of CPAs to collect payments from our customers, as a way of helping to prevent them from defaulting on payments and ending up incurring additional charges.

It is important to note that whilst a Continuous Payment Authority is an automatic payment, it is not the same as a direct debit or standing order, as there is more flexibility regarding when and how much money is taken from your account.

How do I cancel a CPA?

Remember, you have a legal right to cancel a CPA at any time, with these being regulated by the Financial Conduct Authority (FCA). Furthermore, the FCA legally requires banks to refund any money taken from the accounts of customers who have explicitly stated that they want to cancel a CPA.

If you wish to cancel a CPA with MoneyBoat, you have the following options to choose from:

1. You can cancel your CPA by contacting your bank or card provider

2. You can also cancel your CPA with us directly by contacting us today.

Payments taken before a notice of cancellation is received will only be considered for a full or partial refund at our discretion.

It is important to remember that even if you cancel your CPA, you must still repay the loan and any interest and charges that may accrue. It is therefore recommended that you arrange an alternative method of payment with us to repay your amount owing efficiently and easily.

We’ve got a helpful guide on what to do if you're struggling to repay your payday loan.

How does Moneyboat use a CPA?

According to the agreed terms, which can be found in all loan agreements from Moneyboat, a CPA gives us prior approval to withdraw several payments from your bank account. When it comes to repaying a short-term loan, this can give you peace of mind as you will not need to remember to make payments each month and they will be taken out on your behalf. You will however be responsible for ensuring there are sufficient funds in the account.

How much do I have to repay?

Moneyboat Customers will have to pay back the amount of credit and interest on the agreed dates as detailed in their final loan agreement. We will take payment from the debit card(s) whose details you provide.

Moneyboat always stands by their responsibility to act in a way that is fair and considerate. We are careful not to place additional strain on our customers’ financial situations by only withdrawing when we are required to do so.

Missing a Payment

Customers are protected by FCA regulations that only allow us to make 2 attempts to withdraw the payments from your account. If you are unable to make these payments and our attempts fail thereafter, we will not continue trying to withdraw money. Instead, we will be in contact with you and find a way to work together moving forward, such as by setting up a comprehensive payment plan.

If the missed payment is not rectified within three days from the agreed date a late payment fee of £15 will be added to your account as well as further interest on all payments at the rate of 0.7% per day subject to the total amount of interest payable under this agreement not exceeding 100% of the amount of credit provided, including all interest, fees, and charges.

We will not seek part payment (a sum due which is less than the full sum due at the time of our original payment request) unless we are willing to accept such less sum and, after being notified of that sum and when a payment request would be made, you give us express consent to make such a payment request.

How we use your credit card details

You authorise us to take payment by debiting the debit card(s) whose details you provide to us when applying for a loan, at the agreed date of repayment (on the terms set out in the credit agreement).

We will notify you before payment(s) fall due that we will be seeking payment under the CPA. We will also notify you of any unsuccessful attempts to elicit payment under the CPA. The CPA has a lifeline of two unsuccessful payment attempts before requiring renewal as per the Financial Conduct Authority rules.

You must notify us immediately if your bank account and/or debit card details have changed (for whatever reason - for example, because you have closed your bank account or you have lost or cancelled your debit card).

How else can I repay my loan if not via CPA?

You can repay your loan by phoning us and providing your card details or via a direct bank transfer using your loan reference as the payment reference. If you would like to alter your method of payment please contact us directly.

Altering the date of payment

Should you wish to change the date of payment you can do so by contacting us and letting us know. The payments and the CPA associated with each repayment will be set up as detailed on your Pre-Contract and will be confirmed again on your Credit Agreement.