GoodLoan payment authorization
Pre-authorized debit agreement
A pre-authorized debit, or PAD, allows scheduled loan payments to be withdrawn from the bank account authorized by the borrower.
Authorization
By signing the final PAD agreement, the borrower authorizes GoodLoan Financial Inc. and its payment processor to debit the designated Canadian account for amounts due under the identified loan agreement.
Payment details
The final PAD agreement must state whether debits are fixed or variable and identify the amount or calculation method, frequency, start date and any permitted one-time debit. The loan agreement and payment schedule should be attached or made available.
Changes and notice
GoodLoan must provide any advance notice required by Payments Canada rules or obtain a valid waiver where permitted. A change to payment method does not change the underlying amount owed unless the loan agreement is separately amended.
Insufficient funds and retries
If a debit is returned, the payment remains outstanding. GoodLoan or its processor may retry only as permitted by the PAD agreement, Payments Canada rules and applicable law. Any returned-payment charge must be legally permitted and disclosed.
Cancellation
The borrower may cancel the PAD authorization using the method and notice period in the final agreement. Under Payments Canada guidance, cancellation of the PAD stops that payment method; it does not cancel the loan agreement or amounts owed. Another payment method must be arranged.
Recourse rights
Payments Canada provides reimbursement rights for a debit that was unauthorized or did not comply with the PAD agreement. The final agreement must reproduce the mandatory recourse wording exactly. Borrowers can contact their financial institution or visit Payments Canada’s PAD guide for current information.
Contact
Questions or cancellation notices should be sent using the contact details specified in the signed PAD agreement and GoodLoan contact page. Keep a copy of every notice.
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