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. Financial institutions are responsible for verifying the forms and related processes that their clients wish to use as a payment method. Your financial institution may have a model agreement that your clients need to use. It is important to remember that the termination of your PAD contract does not terminate any contract for the goods or services you have with an invoice. It will also not cancel the amount you owe them. By terminating your PAD contract, you simply indicate that you no longer want to pay by pre-authorized levy. You must enter into other agreements with the accountant to pay the amounts due or cancel your contract. Yes, for example. B, you have signed a two-year gym membership contract and have agreed to a pre-authorized fee payment if you terminate the ADP after one year, you are still responsible for paying your membership for an additional year.
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). 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. Revocation of a PAD contract does not cancel the goods or services contract between you and your client and does not terminate an amount owed to you.