DIRECT ACH DEBIT of FUNDS
TERMS AND CONDITIONS
Effective 7/24/17
1. Application of the Agreement: The transfer covered by this agreement is a direct ACH debit of funds from your account at the Financial Institution where your deposit account is held. By agreeing to the Terms, you are authorizing Third Federal Savings to debit your account at the Deposit Financial Institution for recurring debits (a onetime debit) to make a payment to your mortgage loan. These recurring debits shall continue to be processed until such time as you revoke your authorization as referenced below or the loan is paid in full. You understand that the rules and regulations applicable to all of your accounts and or loans with us remain in effect and continue to be applicable.
2. Indemnification: You acknowledge that all of the information you provided to TFS during the ACH loan payment set-up process is true, complete and correct. You agree to indemnify and hold TFS, its associates, agents, and/or assigns harmless from and against any and all causes of action, claims, liabilities or costs (including reasonable attorneys’ fees) that arise against TFS, its agents, associates and/or assigns by reason of having relied on the information provided by you and/or related to TFS providing the services pursuant to the terms of the agreement.
3. Beginning Date: You authorize us to begin processing ACH debits from your account at the Deposit Financial Institution beginning the date indicated during the payment set-up process. The beginning date will be included on the confirmation e mail provided to you by TFS.
4. Provisional Credits: Credit given by us to you with respect to an ACH debit entry is provisional until we receive final settlement through a Federal Reserve Bank. All loan payments will be credited subject to subsequent verification and collection. Understand that payments scheduled for the same day or next day may still take 2-3 business days to process and anything submitted after 3:00 pm ET will begin to process the next business day.
5. Returned or Rejected Debits: If payment is rejected or reversed for any reason, that payment will be reversed from your loan and it will be your responsibility to a make payment to your TFS loan by other means.
6. Debit Amounts: All debits will be for the amount you entered during the ACH loan payment set-up process. You also authorize us to process any reversing debits and credits to correct any erroneous transactions.
7. Transaction Limitations: The following limits will apply for online payments from an external account (ACH): One payment per day, per customer, maximum payment amount allowed $15,000.00. Maximum amount allowed over a rolling 28 day period is $15,000.00 per customer.
8. Change in Payment Amount: If for any reason the amount of your payment changes you will need to log into Online Banking and change the amount of your recurring ACH debit to the new amount. If you fail to make the change your payment may not be applied correctly to your loan and may result in a late payment and fees.
9. Your Right to Stop Payment of Pre-authorized Debits and How to Do So: You may stop a payment or revoke the Authorization by logging into Online Banking and stopping/cancelling your payment.
10. Limitation Liability for Failure to Complete Transaction: You agree that we will not be liable for a failure to complete a transaction if, among others things; (a) through no fault of ours, your account does not contain enough money (or sufficient collected funds) to complete the transaction; (b) if through no fault of ours, the other parties to the transaction fail to execute the transaction; (c) your account is frozen because of a court order or similar reason; (d) your account information has been reported lost or stolen and the account has been blocked; (e) circumstances beyond our control prevent the transaction, despite reasonable precautions we have taken.
11. Business Day Disclosure: Our business days are Monday through Friday, excluding holidays. When the payment date (the date on which the debit from the Financial Institution is credited to your TFS loan payment) falls on a weekend or Federal holiday, the payment date will change to the next business day. If the date chosen falls on the 29th, 30th, or 31st and there are not that many days in the month, the payment date will be the last day of the month unless that falls on a weekend or Federal holiday, then it will be the next business day. The Financial Institution’s business days may vary.
12. Fees and Charges: There are no fees from TFS to initiate an ACH transaction. Transaction fees may be charged by the Financial Institution where your deposit account is held. Late fees or other charges may apply for any loan payments not made on time. We reserve the right to institute other charges or fees in the future.
13. Termination or Amendment: We may, at any time, terminate your right to make direct payments, amend the terms of this agreement or cancel the agreement. Termination by either you or us does not affect your obligation(s) under any loan agreements. If there is a conflict between this agreement and something said by one of our associates, you agree that the agreement controls.
14. Acknowledgment: You must agree to the Terms and Conditions detailed in this document before you will be allowed to continue. Please print a copy for your records.
