Take the hassle out of paying regular monthly payments

Set up Pre-Authorized Debits to take care of it for you

Keeping track of all your regular monthly payments can be a demanding and time-consuming process each month. Make it a little easier on yourself, and free up some time by setting up Pre-Authorized Debits (PAD).

Whether you need to pay bills, make mortgage or loan payments, or keep up regular contributions to your RRSP, a PAD can help you stay on schedule without eating up your time and attention.

To set up a PAD, all you have to do is fill out a payment agreement with the company (biller) you do business with. Usually you can do this by fax, mail or online.

A few things to keep in mind:

• Be sure to keep a copy of the agreement, and make sure that it includes information on how to cancel the PAD. Do not provide your banking information or a void cheque unless you have a copy of the agreement. Never provide your banking PIN or password to the company or merchant under any circumstances.
  
• The agreement should specify the amount to be withdrawn and how often payments will be taken, as well as all account information. If the payments will vary in amount (such as utilities), the biller must give you at least 10 days notice of the amount before withdrawing the funds.
  
• Advise the biller immediately if your account details change (i.e. account number, financial institution). Failure to do so may result in missed payments and cancellation or disruption of a service or contract.
  
• Make sure you keep sufficient funds in the account to make each payment. If a payment is rejected due to insufficient funds, a biller may withdraw the full amount at any point during the next 30 days without notice.
  
• Keep watch over your monthly statement and records to ensure that payments are made according to the agreement you signed. Inform the biller immediately if any withdrawal is not consistent with the agreement or if a payment is taken after the contract expires.
  
  PADs are a simple and effective way to make sure your regular payments are made on time, taking the hassle and worry of missing a payment away.