If you cannot repay a payday advance on its due date, members of the Community Financial Services Association of America (CFSA) and lenders in regulated states must offer an Extended Payment Plan (EPP) at zero additional fee.
1. How Extended Payment Plans Operate
The Zero-Fee Restructuring Mandate
An EPP divides your existing loan balance into at least 4 equal installments across upcoming pay periods. Lenders are legally prohibited from charging additional interest or penalty fees during the active EPP schedule.
- Timing Requirement: Borrowers must request the EPP before the close of business on the last business day prior to the loan due date.
- Credit Bureau Impact: Entering an authorized EPP prevents default and avoids negative credit reporting to specialty collections bureaus.