Continuous Payment Authority (CPA) is a financial tool that gives permission to a loan provider or other entity to withdraw money that cover your loans or other expenses from customer`s personal or business account without the need of authorization for each money transfer.
CPAs are widely used in the purchasing of goods and services industries such as broadband and mobile phone services, water and gas companies or insurance services.
Most of the lenders offer this type of financial service which is convenient if you have a stable income. They will ask you for your long number across your debit or credit card.
Continuous Payment Authorities are different from direct debits and give more options for the company that is taking the payment to decide when and how much to withdraw from your account.
You should be very careful if you set up an arrangement with your lender to withdraw money from you bank account for loan repayments and cancel it immediately if you believe you’ve been treated unfairly by the loan provider.