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With a payday loan, you agree to borrow a certain amount, over a fixed period of time for example, £150 for 10 days. You dont normally repay using a cheque or by ringing up with your bank details. Instead, the lender will automatically take the loan amount, plus interest, direct from your bank account on the agreed day of repayment. This is a process known as Continuous Payment Authority (CPA). Its your job to ensure there is enough money in your account to cover your repayment on the agreed date.
If theres no money to pay the loan. Lenders will usually try to take the money from 5am on the day of collection.
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