Unloan Direct Debit Request Service Agreement
The terms and conditions that apply when you set up Autopay.
1. Definitions
- Business Day means any day that is not a Saturday, Sunday or public holiday in Sydney NSW.
- Direct Debit Request means the instructions you give us through the Unloan App to debit a nominated account for payments due under your loan.
- Financial institution means the financial institution at which you and/or your co-borrower hold the account you’ve authorised us to debit.
- Loan means the home loan outlined in your Direct Debit Request.
- Nominated account means the account held at the financial institution you’ve nominated in your Direct Debit Request, from which we are authorised to arrange for funds to be debited.
- You means the accountholder/s who authorised the Direct Debit Request.
2. Unloan, a division of Commonwealth Bank of Australia (CBA) ABN 48 123 123 124, AFSL and Australian credit licence 234945 (‘Unloan’ or ‘we’ or ‘us’) as Debit User will initiate direct debit payments to help you make your home loan repayments as per the instructions you and/or your co-borrower have entered into the Unloan App. In the Unloan App direct debits are referred to as ‘Autopay’.
3. You authorise us to debit from the nominated account:
- the amount you have elected to pay;
- any other amounts due under your home loan contract.
4. You and any co-borrower should regularly check your account statements to verify that the amounts debited from the nominated account are correct.
5. If you select ‘minimum repayment’ when setting up your direct debit, this amount will vary when we change your repayment amounts under your loan contract, e.g. when the interest rate changes
6. If you elect to pay a set amount (not the minimum repayment) the following will occur:
- If your loan repayments are reduced below your elected payment amount, for example due to a reduction in interest rates, we will continue to debit the amount you have elected to pay unless you give us further instructions to reduce the debits.
- If your minimum loan repayments are increased above your elected payment amount, for example due to an increase in interest rates, we will debit the minimum loan repayment.
7. At least one borrower on the loan account must also be an accountholder of the nominated account.
8. Where the loan account is in joint names, one borrower must enter a direct debit request into the Unloan app. If your loan account is ‘any to approve’ for Autopay, the Autopay request will be effective once entered into the app and approved by one borrower. If your loan account is not ‘any to approve’, all other borrower(s) will need to approve the request through the app. This request may only be valid for a certain timeframe.
9. Debit payments will commence once your request is processed and will be made regularly from the nominated account on the date you select. Once instructed, Unloan will continue to initiate the debit payments until you notify us in accordance with clause 12 and we process your instruction, or until the loan account is closed. Unloan will not issue individual confirmation of payments made.
10. We may amend the terms of this Direct Debit Request Service Agreement at any time. We will give you at least 14 days’ written notice of any such change. Notice may be given to you in any of the ways permitted under your loan contract with us. If you’re not a co-borrower under the loan account, you won’t receive these notices from us but should check with your co-accountholder/the borrower for any changes (and if you are that borrower, you agree to forward any such notices to your co-accountholder).
11. If sent electronically, communications relating to this Direct Debit Service Agreement are taken to be received when they enter the first information system outside Unloan.
12. If you wish to defer, alter or cancel an individual payment or your direct debit instructions, you can do so at any time in the Unloan App under ‘Autopay’. If your loan account is ‘any to approve’ for Autopay, the deferrals or alterations will be effective once entered into the app and approved by one borrower. If your loan account is not ‘any to approve’, all other borrower(s) will need to approve the deferral or alterations through the app. Autopay cancellations are effective once entered in to the Unloan App and approved by any borrower. These change requests can also be directed to CBA as the ledger financial institution.
13. You can also arrange to suspend and/or cancel your Direct Debit Request through your financial institution, which is required to act promptly on your instructions.
14. Any queries concerning debit payments or disputed debit payments must be directed to Unloan as Debit User in the first instance. Please see clause 23 for information on how to contact us. Such queries can also be directed to CBA as the ledger financial institution.
15. Direct debiting is not available on the full range of accounts at all financial institutions. If in doubt, you should check with your financial institution prior to setting up any direct debits.
16. You should check the nominated account details against a recent statement from your financial institution and, if uncertain, check with them before completing the Direct Debit Request. It is your responsibility to ensure the nominated account details you have provided to Unloan are correct, and that you notify us if the nominated account details change or if the account is closed.
17. By agreeing to these terms, you warrant and represent that you are duly authorised to request the debiting of payments from the account you have nominated in the Unloan App.
18. It is your responsibility to have sufficient funds available in the nominated account by the debit date to enable debit payments to be made.
19. If you have insufficient funds or your payment is otherwise dishonoured by your financial institution, the payment will fail and will not be re-attempted by Unloan. If necessary to meet your minimum payment requirements, you will need to make a manual payment. Following a failed payment, the next scheduled direct debit will be initiated as normal.
20. If a debit payment falls due on any day which is not a Business day, the debit will be processed on the next Business day. If you’re uncertain as to when the debit will be processed to your account, you should check with your financial institution.
21. Unless it would put your account into credit, debit payments will be made in accordance with your instructions regardless of any additional payments you make to your loan account. Accordingly, the ‘minimum repayment amount’ we debit on a regular basis will not be adjusted when you have made additional payments, unless otherwise agreed with Unloan.
22. If a debit payment is made in accordance with your instructions and that payment would cause your loan to have a credit balance, the payment will fail. If necessary to meet your minimum payment requirements or close out your loan, you will need to make a manual payment.
23. We may need to share your information to resolve claims relating to an alleged incorrect or wrongful debit. Our Privacy Policy explains in more detail how we collect, use, and share personal information and how you can access or correct personal information that we hold about you. If you wish to raise a dispute regarding direct debits, please email us at [email protected] or call us on 1300 630 000. Any disputes will be dealt with in accordance with the process set out in our Credit Guide.
24. If we raise a dispute and we conclude your account has been incorrectly debited, we’ll arrange for your financial institution to adjust your account (including interest and charges) and notify you of the amount your account has been adjusted. If we conclude that your account has not been incorrectly debited, we’ll advise you of the outcome and provide you any related evidence.
Unloan is a division of Commonwealth Bank of Australia.
Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).
Unloan offers a 0.01% per annum loyalty discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.
Tax law is complex and subject to change. For the latest information, check the ATO website or with your accountant or financial advisor.
Unloan is a division of Commonwealth Bank of Australia is also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.
Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).
Unloan offers a 0.01% per annum loyalty discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.
Applications are subject to credit approval, satisfactory security and minimum deposit requirements. Full terms and conditions are found on our Unloan Terms and Conditions. Modified Terms and Conditions will be set out in our Notice of Variation Agreement, if you are approved. This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.