Before you accept that a company automatically withdraws money from your bank account, make sure the business is legitimate and credible. Consider using another payment method until you are sure you are satisfied with the company or service. Never give your bank account or debit card information to a company you`re not sure about at all. A company cannot require you to repay a loan by direct debit to your current account as a condition for granting a loan (unless the loan is an overdraft line). Be careful with a company that puts you under pressure to pay back by direct debit. Automatic payments can help you avoid late charges on your bills. However, if you forget to track your account balance and it is too low if an automatic payment (or other) is due, you may have to pay overdraft or NSF fees. The bank and the company can charge you a fee if there is not enough in your account. These fees can be added up quickly. Keep a close eye on your bank account balance and upcoming automatic payments to make sure there is enough money in your account when payment is made.
Individuals use automatic payments set up with a merchant or other service provider to pay bills and other recurring payments from their bank or credit union accounts. The Automatic Debit Agreement is a device that allows you to deduct your customers directly from your customers by directly incriminating their BPI accounts. With BPI ExpressLink, the bank`s internet banking platform, you simply download your collection list and payments are credited in real time to your account. Payment comfort for your customers. Because payments are taken directly from your debtor`s accounts, they don`t need to visit payment centers and queue. All they have to do is make sure their account is funded. You can set up automatic payments to pay the same amount each time, or you can allow payments that vary in a given area, z.B. for your electricity bill, which changes each month. The company must notify you at least 10 days before the expected payment if the payment will differ from the amount or area approved or the amount of the last payment. This could be for electricity bills, credit card bills, monthly child care fees, gym fees, car payments or even a mortgage.
These automatic payments can be a convenient way for people to make sure they pay their bills on time. Some lenders are proposing a reduction in interest rates on direct debit loans. However, before giving someone your bank account number and permission to automatically withdraw money from your bank account, it is good to know how direct debits work and what you should do with caution. The company must provide you with a copy of the terms of your payment authorization. Payment authorization is your agreement that allows the company to debit your bank account for payment. The terms of your authorization must be clearly and intelligiblely defined. It is important to check the copy of your permission and keep a copy for your recordings. Make sure you understand how many times and how many times the money is taken from your account. Keep an eye on your account to make sure the amount and timing of the transfers are what you agreed to.
Automatic debit payments work differently from your bank`s recurring bill payment function. If you pay recurring invoices, you give your bank or credit union permission to send the payments to the company. With direct debits, you allow the company to withdraw payments from your bank account. To set up automatic payments directly from a company, like. B a student loan or mortgage service provider or even a gym, give the company your current account or debit card information and give them permission in advance: Before you allow a company to make payments