Personal Finance

PRE-Authorized Payment Delayed (Bank Switch)

  • Last Updated:
  • Aug 10th, 2018 4:44 am
Aug 8, 2018
2 posts

PRE-Authorized Payment Delayed (Bank Switch)

My wife's current bank, BMO, where she has a car loan (pre-authorized payment) accepted the completed PAD agreement (August 3rd)
for the switch to CIBC. The car payment is due today, August 9th, but the other bank shows no sign of this new payment.

BMO has confirmed that the banking information on the PAD is correct.

Is it maybe typical for a new transaction such as this not to go through without a bump when banking information has changed?
To me, once it's entered the payments should come out seamlessly.

Would this be noted as a late payment?

What say you?
1 reply
Jun 22, 2018
15 posts
BMO may have " accepted the PAD on August 3rd "
BUT it wouldn't be processed until the next available Business day which would have been Tues Aug.7th
+ 2 business days to Transfer to CIBC for Thurs Aug 9th

There's s good chance it will "post" the Transaction
Dated for the 9th even though it won't likely show as processed in your acct until Monday the 13th

If by chance it does come back posted at a later date
Or shows as a.late payment.. You can always follow up to advise them of what happened.

More often than not the note in the credit file for updating your acct info is enough to have them waive any late fees. It wouldn't be considered a late payment with further confirmation from BMO/CIBC


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