We hear it all the time... “Why do you need my banking details? That’s personal information. What’s that for? Is that really necessary?”
When we ask for your banking details, we understand that you will have questions and concerns. And frankly, that’s a good thing! You should be asking these types of questions whenever you are conducting financial business, especially if it’s online.
In our case, it’s quite a simple explanation. We ask that you provide your banking details because we use the Direct Debit/Credit Automated Clearing House (ACH) System for paying in and withdrawing funds. This means that all funds are directly transferred from your bank account to Carilend, eliminating the hassle of cash, cheques, or bank drafts.
Of course, we have all the standard security features in place to ensure that your information is safe. If you look up at the top of our website, you will see that our URL begins with “https”. This means that our website is a Secure Site. All of the information and communication between you and Carilend is encrypted.
We also take the time to verify your banking details before any funds can be taken from/sent to your bank account. We do this by sending a small deposit (less than $1) to your bank account. Once you locate this amount on your bank account, you enter it into the appropriate link on Carilend’s website. This ensures that everything is working smoothly between our accounts and that you are in control of the account. It’s just another one of our security features.
Whether you are investing funds or making a payment on your loan, the funds are going to come directly through your bank account. For Lenders, you go to the Pay In & Withdraw Money page on the Menu and set up a Pre-Authorized Debit instructing us how much you’d like to pay in and on what date. For Borrowers, you will agree to a set of Pre-Authorized Debits (also known as Direct Debits) when you accept the loan which allows us to take the funds from your bank account each month on a specific date. In both cases, it’s easy, simple, cheaper and definitely more convenient than physically visiting a location to pay in funds.
Just one further clarification, the banking details you provide us must be for a commercial bank. Unfortunately, the credit unions do not operate on the same ACH System as the banks, and therefore, we are not currently able to use credit union accounts to collect or receive payments. If you are a Borrower and your salary is paid into a credit union account, then we would need to service your loan via a salary deduction.