Can I Make My Loan Repayments Online Or By Phone?

Author · Modified on 16 September, 2022

Typically, your payday loan repayments will be taken out of your account automatically after agreeing to what’s known as an ACH Authorization.

ACH Authorization, which stands for Automated Clearing House Authorization, is a payment authorization that gives the lender permission to electronically take money from your bank, credit union, or prepaid card account when a payment is due.

However, if you are having concerns about making your repayments on-time, you absolutely can call up your lender by phone and discuss your payment plan and, if necessary, sort out an alternative arrangement to pay.


How Do Loan Repayments Work?


The majority of loan repayments work in a pretty similar way, although where they may differ is if you elect to take out an installment loan, as opposed to a regular payday loan.

With a regular payday loan, the process with Dime Alley’s panel of lenders is 100% online.

When you apply to take out a payday loan, as long as you are accepted, your lender will provide you with terms of repayment. You won’t have to physically do anything – with ACH Authorization, which you can think of as a ‘direct debit’, your lender will be able to take the funds for repayment when the agreed-upon day comes.

Installment loans, whilst still 100% online, work slightly differently.

Not only will your funds come into your account in “installments”, the repayment will too. But don’t worry – just as with your ordinary payday loans, the repayment process occurs automatically.



What is ACH Authorization?


In a nutshell, ACH Authorization is the approval you give your lender to withdraw funds from your bank account when it is time to repay your loan.

There are two main types of ACH payment;

  1. Direct deposits;
  2. Direct payments.

Direct deposits may include payroll, expense reimbursement, government benefits, taxes, interest payments and more.

Direct payments represent the use of funds to make payments by either an organization or individual, such as loan repayments.

ACH payments are typically much cheaper than other methods of electronically transferring funds and they offer very secure payment methods for lenders.


Can I Stop Automatic Repayments on My Payday Loan?


Yes! If you think that you will struggle to make your repayment on a payday loan on-time and in-full, you will be able to cancel ACH payments, as long as you request to do so three business days in advance of your scheduled payment.

Because they take a few days to settle, you do have a bit of extra time to stop payment on ACH transactions if necessary, however, the rules on these payments may differ depending on your bank. Some banks will be able to cancel an ACH payment over the phone or online, others may require you to submit a form requesting the cancellation.

To cancel a recurring ACH payment, you’ll need to first contact the company you’re paying and inform them that you’re revoking their access to your account, which you can do over the phone.

You’ll then need to contact your bank that you’re making the payment through and inform them that you’ve revoked authorization from the company. You may be able to do so over the phone, or you may be asked to write a stop ACH payment letter or complete a form.


How to Ensure You Can Repay Your Payday Loan


In order to avoid any confusion or trouble, you should try to make sure you have the money ready in your account when it’s time to repay your payday loan.

For example, your payday is on the 31st, you’ve agreed the lenders can debit the money for the payday loan from your account on the 3rd after. You need to make sure you don’t overspend on anything before that date.

The best way to make sure of this is to write out a budget or download a budgeting app on your smartphone. Breakdown all your bills and essentials along with dates of direct debits and standing orders. Sign up for online banking if you haven’t already and keep an eye on what’s coming in and going out of your accounts.

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