Collecting Debt by CPA

Collecting a debt via continuous payment authority (CPA) can be in the interest of consumers as they do not typically trigger bank charges, unlike direct debits. However, at the moment lenders can only take payment by CPA if it is included in the terms of the original credit agreement. The FCA are proposing to allow firms to use CPAs for agreed repayment plans, as long as the customer is clear on why it’s being used and agrees to the arrangement. However the FCA rules regarding the misuse of CPA will continue to apply. 


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