If you can’t pay off your payday loan in full, you might be eligible for an Extended Payment Plan (EPP) — a little-known option that can stop the debt spiral without additional fees or collections.
Here’s what an EPP is, who qualifies, and how to request one the right way.
📝 What Is an Extended Payment Plan?
An Extended Payment Plan (EPP) is a formal agreement that allows you to repay your payday loan in smaller, interest-free installments over time — instead of one lump sum.
It’s designed to give borrowers breathing room while avoiding:
- Rollovers
- Late fees
- Default or collections
✅ Who Qualifies for an EPP?
Eligibility depends on your state laws and whether your lender is a member of the CFSA (Community Financial Services Association).
Generally:
- You must request the EPP before the loan due date
- You haven’t defaulted on the loan yet
- You can demonstrate financial hardship
Some states legally require lenders to offer EPPs, while others leave it to the lender’s discretion.
💬 How to Request an EPP
Step 1: Contact your lender at least 1–3 business days before your due date.
Step 2: Use a script like this:
“Hi, I’m calling to request an Extended Payment Plan on my payday loan, as I’m unable to make the full payment by the due date.
I’d like to avoid default and am asking to pay in installments according to your EPP policy.”
Step 3: Ask for the EPP terms in writing before making any payments.
📆 What a Typical EPP Looks Like
- 3–5 biweekly or monthly payments
- No additional interest or fees
- No collection activity as long as you follow the plan
- Must sign a revised agreement
⚠️ What to Watch Out For
- Some lenders may refuse if they’re not legally required or not part of the CFSA
- If you miss a payment under the EPP, full collection actions resume
- Always confirm that automatic debits are paused or adjusted
🧠 Final Insight
An Extended Payment Plan can be your best chance at escaping payday loan debt — without added stress or long-term damage. But you must act before the loan is due.
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As a respected policy journalist, Carmen Rodriguez explores the evolving landscape of payday lending, financial regulation, and consumer protections — often examining how federal laws shape financial inclusion across underserved areas.
