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Agreement text for AutoPay bank override.

Posted: Tue Apr 07, 2020 4:47 pm
by wtech_josh
AutoPay normally collects the borrowers bank account and authorization directly from the borrower electronically. There is an option in Moneylender to input the borrower's bank account yourself. If you use this option, you need to keep the borrower's signed authorization to do ACH transactions on file. Here's sample text for the agreement:
I authorize Whitman Technological and/or [LENDER NAME] to initiate debit and credit entries to my checking/savings account. This authority will remain in effect until I notify Whitman Technological and/or [LENDER NAME] online or in writing to cancel it in such time as to afford a reasonable opportunity to act. I can stop payment of any entry by notifying my financial institution 3 days before my account is charged, or by cancelling the payment online before it has begun processing.
Make sure it's signed and dated and keep it somewhere you can find it in the event that during the annual audit we're required to show proof of authorization from all third parties. Failure to obtain these authorizations may result in penalties and/or termination of your AutoPay account. If you have some other wording for your authorization, that's probably going to be just fine. We just need to be able to prove the borrower gave us permission to debit their bank account.