A CPA loan, or Continuous Payment Authorization loan, has certain benefits, yet these benefits can be quickly outweighed by the variety of cons that giving authorization to this loan can do.
First, it is important to note that a CPA loan lets the firm that you authorize the loan with withdraw cash from a your bank account without asking permission from you or your bank.
While taking out a CPA does allow for you to gain instant cash, there are a number of negatives to allowing for a CPA to be taken out using your bank account. For instance, when you grant a CPA, the firm can repeatedly attempt to take out varying sums of money until they have gotten their money back as well as interest, which can sometimes be as high as 1% per day. Additionally, the firms, which are most commonly known as payday lenders, can get priority over your rent, mortgage payments and additional bills.