How would you feel if someone had access to your bank accounts, and helped themselves to your money?

How would you feel if this was a company you had given your details to, not realising that rather than try and take a payment once, your account could be accessed limitless times for different amounts?

Many people are finding themselves in the above situation causing them countless problems.

Gym membership form with pen

What Is CPA?

If you take out a gym membership, magazine subscription or even a loan, the chances are you’ll pay for these products using a CPA.

CPA stands for Continuous Payment Authority and and is likely to be provided when you give a company permission to go into your account and take money to repay a subscription or a loan. It is not the same as a direct debit.

What’s All The Fuss About?

Many consumers are angry as their account has been accessed a number of times for different amounts, which has led some consumers to be unable to afford bills, grocery shopping or rent.

At Provident, We’re Different

When you take out a loan with Provident Online, we will set up a CPA. However, we won’t access your account for more than the amount agreed on unless agreed with you. We will try to take a payment once, and if so some reason we cannot, we’ll contact you to make you aware of the situation.

We care about our customers. We won’t offer you money we know you can’t repay. This is why 93% of customers are satisfied with our service.*

If you’re interested in a personal loan from Provident Online, apply here

The Difference Between CPA and Direct Debit

A direct debit allows a payment to be taken only once, on the day specified. It is covered by a bank guarantee, so if an error occurs and this is the banks fault, you’re entitled to a refund for the amount paid, whereas this is not the case with a CPA.

Cancelling CPA- Lack Of Support

There can also be some confusion over who is able to cancel a CPA- the bank or the company.

Legally banks and companies must cancel CPAs if requested to do so. So if the company taking the money from your account refuse to stop, contact your bank immediately to cancel this payment method.

How Do I Cancel My CPA?

To cancel your CPA, simply contact the company and ask to cancel it. You can also cancel with your bank. Payments should then stop immediately. A template letter requesting that you cancel the CPA can be found here.

If you have requested that the CPA stop and payments are still taken from your account, these payments are viewed as unauthorised transactions and therefore can be refunded. If you have any further questions or problems, speak to The Financial Ombudsman.

Claim Compensation

If your bank hasn’t cancelled CPA payments, you are entitled to compensation. You’re eligible if you tried to cancel your CPA from November 2009 onwards and your bank told you this could not be done.

Steps To Take

  • If you did not complain to your bank at the time, complain now, noting the dates the money was taken from your account and the amounts taken.
  • If you complained at the time, your bank should contact you. However, it may be worth contacting the bank to be sure that they received your complaint. It’s better to write to the bank, as then you have evidence of the contact.

For more information, check out the Financial Ombudsman.


*Provident Customer Tracker 2013