Don`t forget to check your bank account regularly to make sure the withdrawals match what you approved in the agreement. In the case of corporate ADPs, a company has 10 days from the date of payment to declare a false or unauthorized pre-authorized charge to its financial institution. If there is no agreement between the company and the accountant, the company has 90 days to report the problem. A PAD is an agreement between a customer and a bill eater. If you enter into a PAD agreement with a customer, you give that organization permission to regularly withdraw money from your bank account. Congrats! You now have all the tools and information to create your own PAD agreement! Your pre-authorized contract should include the frequency of the pre-authorized charge. Frequency is the frequency at which the bill eater withdraws money from your account. If you notice a payment for an amount you did not authorize or an automatic payment that you cancelled, you should first contact the debtor to resolve the issue. This could only be an administrative error that can be easily corrected. Hundreds of millions of ADPs are processed each year in Canada, and the vast majority of them pass without problems. Note that your bank or financial institution does not have the details of the agreement between you and the accountant (unless the accountant is also your bank).
The agreement should contain instructions for cancellation. If this is not the case, the client must notify the accountant in writing and keep a copy for his recordings. You can use the type demolition form in the H1 rule, but you don`t have to. By revocing a pre-authorized debit contract, your contract for goods or services with the accountant or the amount owed will not be terminated. Cancellation applies to the payment method. You can ask the accountant if he accepts PADs as a means of payment. If so, the invoice liable is required to insert a pre-authorized debit contract that describes the account on which your money is deducted, as well as the amount and frequency of withdrawals. Once you have terminated the contract, check your account data to confirm that pre-authorized debits are cancelled.
If they continue, talk to the bill eater. If you are not satisfied with your response, you have 90 days to request a refund through your financial institution. The most common type of authorization is a paper form that is filled out by the payer himself.