This Linked Account ACH Debit Authorization (this “ACH Debit Authorization”) governs The First National Bank of Lacon’s (the “Bank”) authority to initiate preauthorized electronic fund transfers (“EFTs”) using ACH debit from your linked external bank account (your “Linked Account”) in connection with the Booster Credit Card program (the “Program”). This ACH Debit Authorization is a separate authorization that you provide to the Bank and is one of the Booster Account Documents that accompany your Booster Cardholder Agreement (the “Agreement”). In the event of any conflict between this ACH Debit Authorization and the Agreement, this ACH Debit Authorization controls with respect to the subject matter addressed herein. The Agreement controls as to all other matters, including your Spending Limit, fees, events of Default, suspension and closure of your Booster Account, and your rights under the Truth in Lending Act, the Fair Credit Billing Act and Regulation Z, including the Your Billing Rights notice. Defined terms used but not defined in this ACH Debit Authorization have the meaning given to them in the Agreement.
This ACH Debit Authorization is provided pursuant to the Electronic Fund Transfer Act (“EFTA”) and Regulation E, 12 C.F.R. Part 1005, § 1005.10(b), which requires that preauthorized EFTs from a consumer’s account be authorized by the consumer in writing or electronically, and that the authorization be readily identifiable as such. By executing this ACH Debit Authorization, you are providing the written authorization required by Regulation E § 1005.10(b) for all ACH debits described herein.
IMPORTANT — PLEASE READ THIS ACH DEBIT AUTHORIZATION CAREFULLY. IT AUTHORIZES RECURRING ELECTRONIC FUND TRANSFERS OF VARYING AMOUNTS FROM YOUR LINKED ACCOUNT TO REPAY YOUR BOOSTER ACCOUNT CREDIT BALANCE. YOU HAVE THE RIGHT TO STOP PAYMENT OF ANY PREAUTHORIZED TRANSFER AS DESCRIBED IN SECTION 5 OF THIS ACH DEbit AUTHORIZATION. YOU ARE NOT REQUIRED TO AUTHORIZE ACH DEBITS IN ORDER TO OBTAIN OR KEEP YOUR BOOSTER ACCOUNT. SEE SECTION 1.3 FOR THE OTHER WAYS YOU MAY REPAY YOUR CREDIT BALANCE.
1.1 By executing this ACH Debit Authorization, you authorize the Bank to initiate preauthorized recurring ACH debits from your Linked Account for the following purpose:
1.1.1 Auto-Repayment Collections. The Bank is authorized to initiate an ACH debit from your Linked Account to collect your full outstanding Booster Account Credit Balance (each, an “Auto-Repayment”), one (1) to five (5) Business Days after each Purchase is posted to your Booster Account. Auto-Repayments are initiated automatically by default unless you have disabled Auto-Repayment through the App. The amount of each Auto-Repayment will equal your full outstanding Credit Balance at the time of collection, which will vary from cycle to cycle based on your Purchase activity.
1.1.2 Shortfall Recovery. Any failed or returned Auto-Repayment on your Booster Account is included in your Credit Balance and the Bank is authorized to initiate additional ACH debit attempts from your Linked Account to recover the outstanding Credit Balance, subject to the reinitiation limits of the NACHA Rules.
1.2 This ACH Debit Authorization applies solely to your Linked Account, meaning the U.S. deposit account that you linked to your Booster Account at onboarding through Plaid or any similar service provider(s). This ACH Debit Authorization does not cover payments made using any other method.
1.3 ACH Debit Is Not Required. You are not required to authorize ACH debits from your Linked Account in order to obtain, or to keep, your Booster Account or your Booster Card. Instead of, or in addition to, this ACH Debit Authorization you may) repay your outstanding Credit Balance by Manual Repayment through the App, from your Linked Account, as described in Manual Repayments section of your Agreement.
2.1 Auto-Repayments are initiated as ACH debits one (1) to five (5) Business Days after each Purchase is posted to your Booster Account.
2.2 Your Credit Balance will be reduced only upon confirmed settlement of each Auto-Repayment, and not merely upon initiation of the ACH debit. Settlement is confirmed when the ACH debit to your Linked Account is deemed successful and has cleared the applicable return window, generally two (2) Business Days after the ACH settlement date for standard ACH entries. A later return may still occur, in particular, the financial institution holding your Linked Account may return an ACH debit as unauthorized for up to sixty (60) calendar days after the settlement date. If that happens, your Credit Balance will be reinstated as described in Section 6. We will not reduce your Credit Balance or reflect your Booster Account as repaid until that confirmation is received. This means your Credit Balance may remain outstanding for two (2) to three (3) Business Days after an Auto-Repayment is initiated, reflecting the unsettled status of the repayment during that period.
2.3 Your available Spending Limit will be restored once an Auto-Repayment is confirmed as settled.
3.1 You authorize the Bank to initiate ACH debits of varying amounts from your Linked Account. The amount of each Auto-Repayment will equal your full outstanding Credit Balance at the time of collection, which varies with each settlement cycle based on your Purchase activity and may include:
(a) the total of all Purchases posted during the applicable period;
(b) any applicable fees charged to your Booster Account (including Foreign Transaction Fees and Card Replacement Fees); and
(c) any previously failed or returned Auto-Repayment amounts being re-collected together with your current outstanding Credit Balance.
3.2 Because each Auto-Repayment is authorized in the amount of your full outstanding Credit Balance at the time of collection, rather than in a fixed predetermined amount, no advance notice of the specific dollar amount of each individual Auto-Repayment will be provided. You agree that this ACH Debit Authorization covers all such varying amounts without requiring separate advance notice. This is a disclosed feature of the variable amount authorization. You can monitor your Auto-Repayment history at any time through the App or by reviewing your Billing Statements.
3.3 No single Auto-Repayment will exceed your Initial Spending Limit plus any applicable fees disclosed in the Rates and Fees Table in Section I of your Agreement, except where a previously failed Auto-Repayment is being re-collected together with your current outstanding Credit Balance, in which case the total collection may reflect such additional amounts.
3.4 Multiple ACH debits may be initiated from your Linked Account within the same Billing Cycle, corresponding to multiple Purchase settlement events.
3.5 Amounts in Dispute. No Auto-Repayment will include any amount that is the subject of a billing error notice you have given us under the Your Billing Rights section of your Agreement, for so long as that notice is under investigation. As required by Regulation Z, 12 C.F.R. § 1026.13(d), we will not attempt to collect a disputed amount, and will not report it as delinquent, while our investigation is pending. If we determine that no billing error occurred, the disputed amount will again form part of your Credit Balance and may be collected by Auto-Repayment.
4.1 To use the Booster Card, you must maintain a valid Linked Account at all times while your Booster Account is open. Your Linked Account must be a U.S. deposit account held in your individual name at a financial institution insured by the Federal Deposit Insurance Corporation.
4.2 You must ensure that your Linked Account has sufficient available funds to cover Auto-Repayment collections at the time each Auto-Repayment is initiated. The Bank will assess your Linked Account balance using data obtained through Plaid or any similar service provider(s) before authorizing each Purchase but does not guarantee that an Auto-Repayment will succeed.
4.3 Your Linked Account is established at account opening and may not be changed or replaced after your Booster Account has been opened. If your Linked Account is closed, restricted, or otherwise becomes unavailable, your Booster Account will be subject to Default consequences as described in the Account Default section of your Agreement. You must promptly notify us through the App or using the contact information in your Agreement if your Linked Account is closed or if Plaid or any similar service provider loses access to your Linked Account.
4.4 Failure to maintain a valid Linked Account may result in suspension of your Booster Card.
4.5 By linking your Linked Account through Plaid or any similar service provider(s), you authorize the Bank and such service provider to access your Linked Account balance information and transaction history on an ongoing basis, refreshed typically once every twenty-four (24) hours, for the purposes of calculating your Spending Limit and authorizing transactions. The terms of service and privacy policy of Plaid or such similar service provider(s) govern that service provider’s access to your Linked Account.
5.1 You have the right to stop payment of any individual scheduled Auto-Repayment from your Linked Account by notifying us orally or in writing at least three (3) Business Days before the scheduled date of the transfer, as required by Regulation E § 1005.10(c). Regulation E § 1005.10(c) places the obligation to honour a stop payment order on the financial institution that holds your Linked Account. Exercising your right with us does not limit your right to instruct that institution directly to stop payment on, or to block, any Auto-Repayment, and you may do so whether or not you also notify us. Because Auto-Repayments are initiated one (1) to five (5) Business Days after a Purchase is posted to your Booster Account, you may check the App at any time, or contact us, to find out the scheduled date of your next Auto-Repayment so that you are able to give us the required three (3) Business Days’ notice.
5.2 To stop payment of a specific scheduled Auto-Repayment, contact us through any of the channels detailed in Section 9 of this ACH Debit Authorization.
5.3 If you provide oral notice of a stop payment, we may require you to confirm your request in writing within fourteen (14) days of your oral notification. If we make that request and do not receive written confirmation within that period, your stop payment request may lapse.
5.4 If you wish to suspend all future Auto-Repayments without stopping a specific scheduled transfer, you may toggle Auto-Repayment off through the App at any time. Toggling Auto-Repayment off does not revoke this ACH Debit Authorization. This ACH Debit Authorization remains in place and Auto-Repayments will resume automatically if you re-enable Auto-Repayment. A three (3) calendar day Processing Period applies after you submit a request to disable Auto-Repayment, during which pending Auto-Repayments may continue. If you disable Auto-Repayment, your Spending Limit modified to the lower of fifty percent (50%) of your Initial Spending Limit or your Spending Limit in effect immediately prior to disabling Auto-Repayment for as long as Auto-Repayment remains disabled.
5.5 Important — Stop Payment Does Not Cancel Your Repayment Obligation. Stopping payment of a specific Auto-Repayment or toggling Auto-Repayment off does not cancel your obligation to repay your outstanding Credit Balance. You remain obligated to pay your full outstanding Credit Balance by the Payment Due Date shown on your Billing Statement through Manual Repayment or otherwise, regardless of whether you exercise your stop payment right or disable Auto-Repayment.
5.6 If you stop payment on a scheduled Auto-Repayment and we honor the stop payment, but we do not receive payment of the outstanding Credit Balance by the Payment Due Date by another means, your Booster Account may be in Default as described in the Account Default section of your Agreement.
6.1 An Auto-Repayment from your Linked Account may fail or be returned by your financial institution for various reasons, including insufficient funds or account closure.
6.2 Following a failed or returned Auto-Repayment, your Credit Balance will be reinstated to your Booster Account, your Booster Card may be suspended, and your Booster Account may be considered in Default as described in the Account Default section of your Agreement. You will be notified through the App promptly upon notification of a failed or returned payment.
7.1 If you believe a transfer governed by this ACH Debit Authorization was unauthorized or made in error, you should contact both us and the financial institution at which your Linked Account is held as soon as possible. Contact us using the information in Section 9 of this ACH Debit Authorization. Contact your Linked Account financial institution using the contact information on your account statement or debit card from that institution. You must notify the applicable financial institution no later than sixty (60) days after it sent or made available the first account statement on which the error appeared.
7.2 Your rights with respect to unauthorized transfers and errors involving your Booster Card or Booster Account are described in the Billing Rights section of your Agreement. Your rights with respect to unauthorized EFTs from your Linked Account, including any unauthorized Auto-Repayment ACH debit, are governed by Regulation E and the Electronic Fund Transfer Disclosure provided to you by the financial institution holding your Linked Account, not by the Bank. The Bank will cooperate with any investigation of unauthorized ACH debits initiated from your Linked Account to the extent required by applicable law, but the primary error resolution obligation for your Linked Account rests with the institution holding that account.
8.1 This ACH Debit Authorization remains in effect until revoked by you or terminated by us in accordance with your Agreement.
8.2 Important — Permanent Revocation. You may permanently revoke this ACH Debit Authorization by contacting us using the Contact Information provided herein or in the Agreement.. If ACH debit is your only authorized repayment method and you revoke this ACH Debit Authorization without making Manual repayment of your full outstanding Credit Balance by the Payment Due Date, your Booster Account may not be able to operate and may be subject to closure. Before your account is closed, we will provide you with a final Billing Statement and instructions for resolving any outstanding Credit Balance.
8.3 Revocation of this ACH Debit Authorization does not cancel any Auto-Repayments made under the authorization that are already initiated before the effective date of revocation. Auto-Repayments in process at the time of revocation will be completed.
8.4 Revocation of this ACH Debit Authorization does not relieve you of any outstanding Credit Balance or other obligation under your Agreement.
8.5 We may terminate this ACH Debit Authorization upon termination of the Program or your Booster Account, as described in your Agreement.
9.1 For questions about this ACH Debit Authorization, to stop payment of a specific Auto-Repayment, or to report an unauthorized transfer:
Through the App: Contact customer support (primary channel)
Telephone: +1 833-851-9335
Mailing Address: First National Bank of Lacon, 111 S. Broad Street, P.O. Box 308, Lacon, IL 61540
10.1 This ACH Debit Authorization is governed by federal law and, to the extent not preempted, the laws of the State of Illinois applicable to contracts made and performed in Illinois, without regard to conflict-of-laws principles. The Bank is a nationally chartered bank headquartered in Illinois, and the credit account relationship created by your Agreement is entered into and administered in Illinois.
10.2 If any provision of this ACH Debit Authorization is found to be invalid or unenforceable, that provision will be modified to the minimum extent necessary to make it enforceable, or severed if modification is not possible, and the remaining provisions will continue in full force and effect.
10.3 This ACH Debit Authorization, together with your Agreement and all Booster Account Documents, constitutes the entire agreement between you and the Bank with respect to the subject matter herein and supersedes all prior understandings relating to ACH authorization for the Booster Account.
BY EXECUTING THIS ACH DEBIT AUTHORIZATION ELECTRONICALLY IN ACCORDANCE WITH YOUR E-SIGN CONSENT, YOU CONFIRM THAT:
11.1 You have read this ACH Debit Authorization in its entirety and understand its terms;
11.2 You authorize the Bank to initiate preauthorized recurring ACH debits from your Linked Account for the purposes described in Section 1 of this ACH Debit Authorization, in varying amounts determined by the formula described in Section 3;
11.3 You understand that the amount of each Auto-Repayment will vary and that you will not receive advance notice of the specific dollar amount of each individual Auto-Repayment;
11.4 You understand that you have the right to stop payment of any specific Auto-Repayment with at least three (3) Business Days’ notice, and that doing so does not cancel your underlying repayment obligation;
11.5 You understand that you may suspend all future Auto-Repayments by toggling Auto-Repayment off through the App, which does not revoke this ACH Debit Authorization but will modify your Spending Limit to the lower of fifty percent (50%) of your Initial Spending Limit or your Spending Limit in effect immediately prior to disabling Auto-Repayment while disabled; and
11.6 Your electronic execution of this ACH Debit Authorization has the same legal effect as a handwritten signature.
☐ I have read, understand, and agree to the Linked Account ACH Debit Authorization described above.