Frequently asked questions
Paying back my payday loan
Listed below are the most frequently asked questions we are asked for this section. If your question is not answered on this page, either call customer services on 0871 271 6111 (Call charges apply - 10p per minute from BT landlines, mobiles and other providers may vary) or click for Instant Messaging Support.
- How do I pay back my payday loan?
- What is Continuous Payment Authority (CPA) and how does it work?
- How much do I have to repay?
- By providing us with your debit card details:
- What happens if I can't make a payment?
- The choice of an appropriate due date for repayment
- How CPA can be cancelled
- Can I extend my payment?
- My payday or debit card details have changed
How do I pay back my payday loan?
Your loan will be repaid using the continuous authority on your debit card you provided us with when you signed your loan agreement. If you choose to cancel this, you will still owe the full balance and any interest on your account and must provide us with an alternative repayment method to ensure your account does not go in to default, which could in turn, negatively affect your credit rating.
What is Continuous Payment Authority (CPA) and how does it work?
A continuous payment authority is a type of regular automatic payment that you can set up using your debit or credit card. The authority is linked to the bank account or credit card account that your card is linked to.
A continuous payment authority authorises the lender to withdraw sums from the borrower’s nominated bank account using debit card details, subject to specifically agreed terms which are fully disclosed and agreed through the loan application process, but not through a direct debit, standing order or similar payment mechanism.
Once agreed by a customer, a CPA allows a business to take a series of agreed payments using a customer's debit card or credit card without having to seek express authorisation for every payment. CPAs are often also used to collect renewal payments for things like vehicle breakdown services, insurance policies, gym memberships, online dating, mobile and broadband services or magazine subscriptions.
CPAs provide an efficient and convenient payment method for customers. It is important, however, that you are fully aware of the commitment you are entering into when applying for and accepting the offer of a payday loan from PaydayUK
PaydayUK does not accept Continuous Payment Authorities linked to credit cards or 3rd party debit cards.
How much do I have to repay?
You will have to pay back the full amount of credit and interest on your next payday as detailed in your pre-contractual information and your loan agreement which you signed. We will take payment by debit card which you agreed with us when applying.
By providing us with your debit card details:
You authorise us to take payment by debiting the card provided by you at any time from and including the Payment Date up to the date of any otherwise agreed arrangement with you for the payment of the Total Amount Payable consistent with the agreed terms set out in the credit agreement signed by you.
If during this period your payment of the Total Amount Payable fails, you will be able to contact us and make an agreement to use CPA for an amount less than the full balance as stated in your agreement (you will still owe us the remaining balance).
We will remind you prior to payments falling due.
We will notify you of any failed payment.
You are responsible for ensuring that any payments sent to us by post or other means reach us in time for the funds to be paid into your account and clear on your account by the Payment Date.
What happens if I can't make a payment?
We understand that people's personal and financial circumstances can change. If this is the case, you must let us know as soon as possible and we will do our best to help.
The most important things to note are:
- Don't borrow money you don't think you can pay back Short term or Payday loans should only be used for short term financial needs and are not appropriate for longer term borrowing or if you are in financial difficulty.
- Talk to us and we will help as much as possible.
Please be aware that non repayment by you will result in PaydayUK reporting this to the Credit Reference Agencies which may have a negative effect on your credit score. If you miss your payment, we may charge you a £15 missed payment fee. You must pay us any reasonable expenses and costs that we may incur in taking steps to enforce (for example, via County Court Judgements), or attempt to enforce, our rights against you under this agreement. If you are having problems making a payment please contact us on 0871 271 6111 (Call charges apply - 10p per minute from BT landlines, mobiles and other providers may vary), and we can discuss your payment options.
If you are experiencing financial difficulty, please click the following link where you will find information on non-fee charging agencies that can provide independent advice: Managing your money. Alternatively visit the site of the Financial Conduct Authority (FCA) for advice and useful contact information.
The choice of an appropriate due date for repayment
When applying for your loan with PaydayUK,we will ask you for your next pay-date. This is normally the date on which we expect the loan to be repaid. If for some reason this may vary, please let us know and we will endeavour to accommodate your requirements. Typically this may be at Christmas-time when pay-dates are sometimes seasonally adjusted by employers.
How CPA can be cancelled
Customers can cancel their CPA with the bank or card provider or the company taking the payment. Customers advising the bank or card issuer that they have stopped permission for the payments should also notify us.
Customers may also cancel their CPA by contacting us directly. Payments taken prior to cancellation being received will only be considered for full, or part, refund at the discretion of PaydayUK. Please call us on 0871 271 6111 (Call charges apply - 10p per minute from BT landlines, mobiles and other providers may vary).
If you cancel your authority for the repayment of your loan with us, you will still be responsible for paying any money that you owe including any charges which may accrue. An alternative means of repayment should be agreed.
Can I extend my payment?
We may agree, subject to our credit criteria and affordability assessment and only if requested by you, to renew your loan (when renewing your loan, PaydayUK will issue you with a new agreement).
You should consider very carefully that short term or payday loans should only be used for short term financial needs and are not appropriate for longer term borrowing or if you are in financial difficulty. You must advise us if your circumstances have changed.
If we do agree to allow you to renew your loan, we will, as responsible lenders, only allow you to renew a maximum of two times by paying the interest only. To do so, you will have to repay the interest owing on the loan you have with us. On your following payday, you will have to repay the original amount borrowed and a further month's interest. You may, if you choose, repay not only the interest owing but some additional money off your balance. If you choose to do this, interest will only be charged for a further month on the reduced balance. You will therefore, in this instance, repay the reduced balance plus interest on your next payday. If we do not believe it is appropriate to your circumstances to agree to an extension of your loan, our agents will discuss other repayment options with you.
Please call us on 0871 271 6111 (Call charges apply - 10p per minute from BT landlines, mobiles and other providers may vary) for more information or click the Instant Messaging Support button.
Please note. If you fail to sign your agreement the deferral will be cancelled and full payment will be taken on your original due date by using the continuous authority on your debit card you provided us with when you signed your loan agreement, the details of which are clearly set out in your agreement, including when we may make attempts and the amounts these attempts may be for.
My payday or debit card details have changed
If your payday has changed, or you have a new debit card, please contact our customer services team on 0871 271 6111 (Call charges apply - 10p per minute from BT landlines, mobiles and other providers may vary) or click for Instant Messaging Support as soon as possible and they will make the necessary changes.
We charge a daily interest rate of 0.80% per £100 borrowed with a minimum term of 15 days.
*All loans are subject to status and affordability
Managing your money
PaydayUK provides access to information to help you manage your money more effectively.
We work with nationally recognised credit reference agencies.
Need a longer term loan?
Ladder Loans offers loan terms of 3, 6, 9 and 12 months.
Click here to find out more about Ladder Loans.