Can I cancel a CPA with my bank?

Yes — tell your bank or card provider to cancel the Continuous Payment Authority to the lender. Also inform the lender in writing.

Will lenders freeze interest if I’m in hardship?

Many will when you provide a realistic budget and affordable offer. Keep everything in writing.

What if money is taken after cancellation?

Raise it with your bank and request a refund for payments taken after you cancelled. Provide evidence of cancellation.

Can I get a refund for unaffordable lending?

You can complain to the lender about unaffordable lending. If unresolved after 8 weeks, consider the Financial Ombudsman Service.

Will a DMP/IVA stop card debits?

A plan should centralise payments, but still cancel any CPAs with your bank to prevent unexpected debits while it’s set up.

Payday & High-Cost Loans: Freeze Interest & Stop CPA Payments

Quick Links

Cancel CPA with Bank Ask to Freeze Interest Template Letters Phone Script Refunds & Complaints After DMP/IVA/DRO Breathing Space FAQs

Step 1 — Cancel CPA (Continuous Payment Authority) with Your Bank

A CPA lets a lender take money from your card automatically. If you can’t afford it, tell your bank or card provider to cancel the CPA for each lender and confirm in writing (keep screenshots). This stops repeat payday debits that risk rent, food and energy.

List each lender using your card automatically.
Use app chat/phone/branch to say: “Please cancel the CPA to [Lender Name] and block future attempts.”
Ask the bank to confirm in writing and note the date/time.
Email the lender that you’ve withdrawn permission (see templates below).

If money is taken after cancellation, raise it with your bank and request a refund for the post-cancellation debit. Keep proof.

Step 2 — Ask the Lender to Freeze Interest & Charges

Write to each lender with a short explanation, a realistic budget and an affordable monthly offer. Many lenders will consider freezing or reducing interest/fees when you engage and show affordability. If you can’t pay more right now, offer a £1 token payment and request a review date.

Outline income & essential costs (rent, council tax, energy, food, travel).
Offer what you can keep up every month.
Ask for interest/charges to be paused and for confirmation in writing.
Prefer less pressure? Ask for email/letter only.

Copy-Paste Templates — CPA Cancel & Freeze Interest

Template A — CPA Cancellation (Bank)

Template B — Freeze Interest & Affordable Offer (Lender)

Optional Phone Script — If You Prefer to Call

Hi, I’m calling about my payday/high-cost loan. I’m in financial difficulty and I can’t afford the contractual payment without missing essentials.
I’ve cancelled the CPA with my bank. I can pay £[amount] each month.
Please freeze interest/charges and confirm the plan by email or letter.
If you need my budget, I can provide it now by email.

Refunds & Complaints — If the Loans Were Unaffordable

If rollovers/top-ups were approved when your budget clearly couldn’t sustain them, complain about unaffordable lending. Ask for interest refunds, balance adjustments and fair credit file corrections. If unresolved after 8 weeks or you get a final response you disagree with, consider the next steps while you wait and escalate.

Complain to the lender in writing using your budget and timeline.
Escalate to the Ombudsman if unresolved at 8 weeks or after a final response.

Keep bank statements, income proof and lender messages — these help evidence affordability issues.

Add Payday Loans to One Affordable Plan

Rolling multiple payday/high-cost loans into a single payment via a DMP is often calmer. Depending on circumstances, a formal IVA or DRO might fit better. Compare pros/cons at Compare Solutions and check your numbers with the Debt Calculator.

One payment you can keep up
Fewer calls/letters once arrangements bed in
Potential freezes in informal plans; write-off potential in some formal routes on completion/eligibility

After You Start a Plan — What Happens to CPAs?

Once you begin a DMP, IVA or DRO, payments are centralised. Still cancel any CPAs with your bank to stop surprise debits while everything is set up. If a lender tries to take money anyway, show your plan reference and ask your bank for a refund.

Breathing Space — 60-Day Legal Pause While You Get Advice

Breathing Space can pause most interest, fees and enforcement for up to 60 days while you get debt advice and set up a solution. We’ll confirm eligibility and help you use it appropriately.

Covers most unsecured debts (cards, loans, BNPL, payday)
Ongoing priority bills (rent, council tax, energy) still need paying where possible

Payday & CPA — Frequently Asked Questions

Can a lender still take money after I cancel the CPA?

They shouldn’t. If money is taken after cancellation, ask your bank for a refund and provide evidence of when you cancelled.

Does cancelling a CPA hurt my credit score?

Cancelling a CPA doesn’t itself create a marker. Payment shortfalls can affect your credit record, so stabilising with an affordable plan is key.

CPA vs Direct Debit — what’s the difference?

A CPA is a recurring card payment the merchant controls; a Direct Debit is controlled via your bank and covered by the Direct Debit Guarantee. Payday lenders typically use CPAs.

Should I close my bank account?

Usually no. Cancelling the CPA should be enough. If problems persist, consider moving income to a clean account temporarily.

Can I include BNPL and credit cards too?

Yes — list all non-priority debts so your monthly offer reflects the full picture. See Catalogue/BNPL and Credit Cards.