Payment Protection FAQ

 

Part 1 – Agreement

Customer has entered into this Purchase Agreement to purchase the Payment Waiver Protection product described herein from Rifco.  Where the Customer purchases Payment Waiver Protection, then in applicable circumstances Rifco agrees to waive up to 3 of the Customer’s regular monthly loan payments, subject to all of the Terms and Conditions described herein. For further clarity, this is a Payment Waiver Protection, not an insurance product. Please refer to the Definitions section and the first page of this Purchase Agreement for the specific meanings of defined terms.

The Payment Waiver Protection goes into effect on the Effective Date.

 

Part 2 – Payment Waiver Protection product

With the Payment Waiver Protection product, where the Customer has lost their job involuntarily, Rifco agrees to waive up to 3 of the Customer’s regular monthly loan payments subject to the conditions, exclusions and limitations set out herein. No payment waiver is available or applicable during the first 90 days of the Loan Agreement, because the Customer is not required to make any monthly payments during that time.  The minimum amount of each payment waiver is $100, with any amounts above the waived regular monthly payment being applied to the Customer’s Loan Agreement Balance.  The Benefit is applied solely to reduce or extinguish the Customer’s Loan Agreement Balance. No cash is received by the Customer. Any obligations that the Customer has to Rifco at the time of Involuntary Unemployment that relates to missed payments, deferred payments, additional interest or penalties as a result of not making each payment as scheduled, or as a result of payments under the Loan Agreement following a different schedule than described herein are not covered by this Payment Waiver Protection product.

 

Part 3 – Definitions

Actively Working means working full-time hours not less than 3 months OR 12 month contiguous at time your Loan Agreement commences.

Benefit means the Payment Waiver Protection benefit which is a waiver of up to 3 of the Customer’s regular monthly loan payments, h. This benefit is limited to two claims which occur no less than 12 months apart throughout the duration of this agreement.

Collateral means the Collateral shown on the Loan Agreement together with pledged vehicle with VIN as was in or on the Collateral at the Effective Date.

Continuous Employment or Employed Continuously means employed for a legal salary or wage on a full-time basis (at least 30 hours per week) for a single employer other than You. If You change employers during the Qualifying Period and if the unremunerated period between employments is less than 2 weeks, then for purposes of determining the Qualifying Period, the employers for the periods before and after the unremunerated period shall be considered the same employer.

Customer carries the meaning as set out in the Loan Agreement.

Effective Date means the date the Loan Agreement was signed by the Customer.

Expiry Date means the earliest of the following dates:

1. the date that is the end of the Loan Agreement Term under the terms of the Loan Agreement that exist on the Effective Date;
2. the date when the Customer makes full prepayment of the Loan Amount; or
3. the date on which the Loan Agreement is terminated by Rifco for default or otherwise in accordance with its terms.

Include, includes and including are deemed to be followed by the words “without limitation”.

Involuntary Unemployment or Involuntarily Unemployed means Your involuntary job loss or layoff from Continuous Employment after the Qualifying Period which is not attributable to Your action, in-action, option or desire and which had not been announced by Your employer prior to the Effective Date.

Loan Agreement means the financing agreement between the Customer and Rifco (as assignee) with the Service Payment Plan Number as noted on the first page of this Purchase Agreement.

Loan Agreement Balance as at the time of Involuntary Unemployment means the sum of all outstanding amounts payable under the Loan Agreement according to the records of Rifco. For clarity, Rifco expects that Customer will make all scheduled payments under the Loan Agreement when due.

Loan Agreement Term means the Term as set out in the Loan Agreement.

Qualifying Period means 3 consecutive months of Continuous Employment prior to the date that Involuntary Unemployment commences.

Seasonal Employee means a Customer whose normal employment is subject to seasonal conditions wherein a lay-off or work suspension is a regular and anticipated part of the work schedule.

Self-employed means that You have had worked for income to be received from a trade or profession in which You were engaged, a partnership in which You were a partner, Your own business, or a private company or other entity in which You had an ownership interest.

Waiting Period means 30 consecutive days following the date Your Involuntary Unemployment commenced and before Monthly Benefits become payable.
Part 4 – Benefits, Specific Conditions and Limitations of Payment Waiver Protection product

Payment Waiver Protection Benefit

If the Customer becomes Involuntarily Unemployed, Rifco agrees to waive up to 3 of the Customer’s regular monthly loan payments subject to the conditions, exclusions and limitations set out in these Terms and Conditions. Customers on bi-weekly or semi-monthly payments will be calculated to monthly during the Benefit period. No payment waiver is available or applicable during the first 90 days of the Loan Agreement, because the Customer is not required to make any monthly payments during that time.  The minimum amount of each payment waiver is $100, with any amounts above the waived regular monthly payment being applied to the Customer’s Loan Agreement Balance.  This Benefit is limited to two claims that occur no less than 12 months apart throughout the duration of this Purchase Agreement.

Eligibility – If, at the time Your Involuntary Unemployment commences, You:

• are at least 18 but not yet 65; and
• are covered under the Payment Waiver Protection Product; and
• suffered Involuntary Unemployment after completing the Qualifying Period and Your Involuntary Unemployment continued throughout the Waiting Period, and
• are receiving benefits under the Employment Insurance Act.

You may qualify for the Payment Waiver Protection benefit.
Specific Conditions and Limitations

• Your Involuntary Unemployment must occur more than 30 days immediately following the Effective Date.
• Your Payment Waiver Protection Benefits commence on the date following the end of the Waiting Period.
• Your Payment Waiver Protection Benefits terminate on the earliest of:
  • the date on which all scheduled Loan payments have been made excluding any payments in arrears and any accrued interest thereon, and excluding any balloon payment or payment of residual value;
  • the date 3 Monthly Benefit payments have been made;
  • the date You return to partial or full-time employment;
  • the date You are no longer available for work in Canada;
  • the Date Coverage Terminates; or
  • the date You cease receiving benefits under the Employment Insurance Act.

You have a duty to mitigate by using Your best efforts to find new employment.
Exclusions

No Benefits are payable if Involuntary Unemployment results directly or indirectly, in whole or in part, from one or more of the following:

• Pregnancy, abortion, miscarriage or childbirth or due to parental leave as a result thereof;
• Cosmetic or elective surgery;
• Drug or alcohol use;
• Sickness, bodily or mental infirmity or disease of any kind;
• Common or endemic or epidemic diseases or global pandemic diseases as defined by the World Health Organization, the government of Canada or any local authority;
• Unemployment that occurs within the 30 day period immediately following the Effective Date;
• Voluntary unemployment;
• Early or normal retirement;
• Dismissal with cause including, but not limited to, misconduct, personality conflict, inability to perform or refusal to perform;
• Your employer ceasing operations at Your place of employment, or from lay-offs, or lock out at Your place of employment, but only if prior to the Effective Date, Your employer had announced its intention to lay-off personnel or cease operations at that location;
• Strike or labour dispute at Your place of employment; or
• The loss of Your job, if, immediately prior to the onset of Your Involuntary Unemployment
  • You are a Seasonal Employee, or
  • You are Self-employed, or
  • You are employed by a corporation with which You are not dealing at arm’s length.

30 Day Exclusion – We do not pay the Payment Waiver Protection Benefit if the Involuntary Unemployment occurs within 30 days after the Effective Date.

 

Further occurrences where Payment Waiver Protection Benefits will not be paid:

1. Where the Involuntary Unemployment occurs prior to the Effective Date;
2. Where the Involuntary Unemployment occurs after the Expiry Date;
3. Where the Involuntary Unemployment occurs during or after repossession or confiscation of the Collateral;
4. To any claim arising from any material misrepresentation of fact, falsification of documents or fraudulent act;
5. If the Conditions set out above are not met;

Limitations

1. Payment Waiver Protection evidenced by these Terms and Conditions is not and will never act as Underlying Primary Physical Damage Insurance.
2. In no event will Rifco pay for repairs to the Collateral.
3. Except as specifically set out in these Terms and Conditions, the Payment Waiver Protection does not cover any rental expenses, insurance, or maintenance plans.
4. The Payment Waiver Protection ends on the Expiry Date, which means that it does not apply during any extension of the Loan Agreement Term that extends beyond what was in place at the Effective Date.
5. Except as provided for specifically in these Terms and Conditions, the Payment Waiver Protection does not cover any amounts due on the Collateral that are unrelated to the purchase of the Collateral.
6. If Customer has other insurance which applies to a loss of employment or claim or would have applied if Payment Waiver Protection did not exist, the Payment Waiver Protection will be considered excess coverage and will not pay any loss or claim until the amount of such other insurance is exhausted.

Part 5 – Conditions of Payment

In the event of Involuntary Unemployment, Customer must notify Rifco within thirty (30) days from the date of the Unemployment.

1. No application of the Benefit shall be made or valid unless Customer cooperates fully with Rifco by providing the following documentation including: a copy of your Record of Employment provided by your former employer; Your qualification for Employment Insurance benefits; and that the following condition is met; and
2. You registered with Service Canada for assistance in finding work within 15 days after the date Involuntary Unemployment began.

Part 6 – Assignment; Subrogation Rights; No Transfer by Customer

1. Where Rifco exercises its rights to assign the Loan Agreement to a third party (which can be done without prior notice or consent), then Rifco can also assign its rights and obligations related to the Payment Waiver Protection product purchased by the Customer to the same third party, on the same basis.
2. If, following an Involuntary Unemployment, Rifco credits the Benefit to the Customer, then all Customer rights of recovery against any person are subrogated to Rifco and Rifco may bring an action in Customer name to enforce these rights.
3. This Payment Waiver Protection product cannot be transferred to another Collateral, or to any other person or entity, including any subsequent owner or lessee of the Collateral.

Part 7 – Termination

Your Payment Waiver Protection Benefit will terminate on the earliest of the following dates:

1. When You have received Benefit of 6 monthly payments pursuant to the terms of this Purchase Agreement; or
2. The date of Your death; or
3. The Date of Expiry of this Purchase Agreement, including upon full prepayment of the Loan Amount or the end of the Term of the Loan Agreement; or
4. On the date You retire; or
5. On the date You are no longer available for work in Canada.