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.I authorize [LENDER NAME] to initiate debit entries to my checking/savings account. This authority will remain in effect until I notify [LENDER NAME] online or in writing to cancel it in such time as to afford a reasonable opportunity to act. I can stop payment by cancelling the payment online or by contacting [LENDER NAME] before it has begun processing.
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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: