A CPA refers to a Continuous Payment Authority; when you have given a company permission to automatically deduct money from your account on a weekly or monthly basis. For example, MoneyBoat makes use of CPA’s in order to collect payments from customers, as a way of helping to prevent them 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 exactly 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.
According to agreed terms, which can be found in all loan agreements, including payday loans and instalment loans amongst others, a CPA gives prior approval to withdraw a number of payments from your bank account, which as a customer can give you peace of mind, as you will not need to remember to make payments each month, as these will be taken out on your behalf. You will however be responsible for ensuring there are sufficient funds in the account.
Protecting the Customer
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.
Moreover, you 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.
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:
- You can cancel your CPA by contacting your bank or card provider
- You can also cancel your CPA with us directly by contacting us today.
Payments taken prior to a notice of cancellation being 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 so as to repay your amount owing efficiently and easily.