Payday Loans

How To Pay Back Payday Loans With An Extended Payment Plan (EPP)?

If you are going through a difficult financial situation and do not have an idea on how to pay back payday loans, a wise way is to talk to your payday loan company and request them for an extended payment plan. In many states, it has been made legally mandatory for payday lenders to allow borrowers to pay off their debts in easy monthly installments, but there are certain eligibility criteria they must meet to qualify for such plans. Even if your state does not have any provision regarding the same, this option might still be available to you, especially if the payday loan company you owe the debts to is a member of the CFSA (The Community Financial Services Association of America). The beautiful thing about an extended payment plan is that it allows you to pay back the debts in small installments over a much longer period of time without charging you additional fee or interest.

How To Check If Your Lender Is A Member Of CFSA?

In general, payday loan companies will never tell you themselves whether they are a member of CFSA or not. You will have to do your own research about it. If you have borrowed from a local payday store, you can visit their office and look for the logo of CFSA in their sticker. Alternatively, you can simply visit their official website and look for the logo. The CFSA logo looks like this -

Besides that, you can also visit the official website of the CFSA and check their list to find out if your lender is a member or not. But, this method in particular is not very reliable because they do not update this list very frequently.

What Happens In An Extended Payment Plan?

The provision for extended payment plan (EPP) is for those borrowers who do not know how to pay back payday loans because they are already going through a very bad financial situation. There are three major benefits of an EPP. First, all collection calls will stop automatically. Second, you will be allowed to pay back the debts within the next four pay days (in general, it means four

months unless you get your salary biweekly). Third, your payday lender will be legally prohibited to charge you any extra fee for providing this convenience.

A Payday Loan Company With Membership To The CFSA Is Obligated To Honor Such Requests

If you must borrow payday loan, you should always borrow it from a payday loan company who is a member of the CFSA because it minimizes your chances of getting harassed by your lenders. If your lender is a member of the CFSA, they must agree to your request for an extended payment plan. They are obligated to listen to you.

Restrictions For Borrowers

But, since the chances of misuse of this provision is also very high, the CFSA rules have restricted borrowers to take advantage of an extended payment plan only once every year per payday loan company. It means you cannot request an EPP from the same payday lender more than once a year, but you can request for an extended payment plan from different lenders at the same time or at different times during a year.

But of course, if your state payday loan laws say something different, the lenders must abide by those laws also.

What If Your Lenders Do Not Agree For An EPP Even If They Are A CFSA Member?

In such cases, the CFSA rules have provided borrowers certain legal rights. For example, you can complain about those lenders by writing an email to the CFSA or by giving them a phone call. Their email address is LoanQuestions@CFSAA.com and their phone number is 888-572-9329. If you choose to give them a phone call, be careful about your timing. They accept phone calls on this number on regular business days between 9 and 5 Eastern Time.

Overall, if you are deeply drowned in debts and do not have an idea on how to pay back payday loans, asking for an extended payment plan can be a wonderful option for you. You can try this option even if your lender is not a CFSA member, but your chances of success are very high with lenders who have membership to the CFSA.


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