Payday loans

A payday loan is a short-term loan, usually for a small amount of money. It can be quite easy to get a payday loan but interest rates are high.

Payday loans can be difficult to deal with as you may have given what is called a ‘continuous payment authority’ to the loan company. This means you have given permission to the loan company to take money directly from your bank account. You can stop a continuous payment authority if you follow the right steps.

Payday loans are non-priority debts. This means you can treat them in the same way as other non-priority debts such as credit cards, store cards, loans or overdrafts. They do not have extra powers to make you pay (for example, they cannot take your home) and it is not a criminal offence to be unable to pay a non-priority debt. You can find out how to deal with a payday loan at Step 4 of our Four simple steps to dealing with your debts.

Dealing with your non-priority debts and Payday loans for more advice and information.

We have a fact sheet that tells you how to deal with the common problems that often occur with payday loans.

Use this fact sheet to: 

See our fact sheet:

Payday loans.

  • help you stop a continuous payment authority;
  • deal with a loan ‘rollover’;
  • find out about alternatives to payday loans; and
  • help you make a complaint.

This fact sheet includes:

  • two sample letters to help you stop a continuous payment authority; and
  • some useful contacts and links for you to get further help.