Letter Of Authorization To Debit Account Template for Philippines

The Letter of Authorization to Debit Account is a crucial document in the Philippine banking system that facilitates automated payment arrangements between parties. This document is commonly used when establishing recurring payment arrangements for various purposes such as loan payments, insurance premiums, utility bills, or other regular financial obligations. It must comply with the Bangko Sentral ng Pilipinas (BSP) regulations and the General Banking Law of 2000, ensuring proper documentation of the account holder's consent for automatic debiting. The authorization typically includes specific details about the account holder, the bank account to be debited, the beneficiary, transaction limits, and the terms under which the authorization can be modified or terminated. This document serves as a legal basis for recurring transactions and provides protection for all parties involved in the automated payment arrangement.

1. Account Holder Details: Full legal name, address, and contact information of the account holder

2. Bank Account Information: Complete details of the bank account to be debited, including account number, account type, and bank branch

3. Beneficiary Information: Details of the party authorized to receive the debited funds, including company name and account information

4. Authorization Statement: Clear and explicit statement authorizing the bank to debit the specified account

5. Transaction Details: Specific amount or calculation method, frequency of debits, and duration of the authorization

6. Terms and Conditions: Key conditions governing the authorization, including procedures for modification or cancellation