Parachute | FAQs

What do I need to complete the application process?

Here's what you'll need to apply:
· Proof of income (at least 2 most recent paystubs)
· Most recent statements for debts to be consolidated
· Bank account Information
· 2 pieces of government issued ID (Driver's License or Provincial ID with photo plus one of Passport, SIN card, PR card, or Birth Certificate)

Why borrow through Parachute?

Many Canadians choose to borrow through Parachute as our APR rates are often much cheaper, we have no early repayment fees and accounts are easily managed online, with you in charge. But we don’t stop there. Canadians choose Parachute because we go beyond just the debt consolidation loan process with you. We help you to get financially fit by engaging with you throughout the loan process with recommendations and exciting ideas to help you improve your credit score – and then we reward you for that hard work!

Who can borrow through Parachute?

Our borrowers are individuals living in Canada. To borrow with Parachute you need to be at least 19 years old, have a fair credit history and a regular income.

How is Parachute regulated?

Parachute is subject to the provincial laws of each jurisdiction in which it offers and funds loans. On a federal level, Parachute’s lending operations are subject to specific statutes enforced by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), as well as other federal agencies.

How does Parachute collect repayments from borrowers?

Payment is arranged by direct debit, to be collected either monthy, semi-monthly or bi-weekly. Your first repayment is usually scheduled to be debited one calendar month after you accept your loan.

Can I prepay my loan, or make a “lump sum” payment?

Yes, you absolutely can as there is no fee or prepayment penalty for doing so. If you would like to make additional payments contact Parachute and we will help you do so. The amount paid will be deducted from the total balance of your loan.

What are the risks of borrowing through Parachute?

The general risk of borrowing with us is the same as the risk of borrowing from any other lender. You will need to consider if the repayments are affordable for you on a monthly basis. You will also need to ensure you have a plan in place should your employment circumstances change.

Does signing up for Parachute impact my credit score?

The credit check we perform to determine your eligibility has no impact on your credit score. To approve you for a loan we are required to pull your credit bureau which may have a slight impact on your score.

In which provinces is Parachute available?

Parachute is currently available in AB, BC, MB, NB, NL, NS, ON, PEI, SK with additional provinces and territories availability coming soon.

What are the eligibility requirements for borrowing?

Here are our minimum requirements to be approved for a Parachute loan:

· At least 18 years of age
· Resident of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland & Labrador, Nova Scotia, Ontario, Prince Edward Island, or Saskatchewan
· Canadian Citizen or Permanent Resident
· Employed with income at least $30,000
· Canadian Bank Account
· Credit Score at least 580 (FICO)
· No bankruptcy, Consumer Proposal or judgements

How long after funding period ends will the loan be deposited in my bank?

Parachute simplifies the debt payout process by sending the loan funds directly to your financial institution that holds your high interest debt for paying your loan balances. No funds are sent directly to your bank account.

Why am I being asked to complete the Bank Verification step during the application process?

When you apply for a loan with Parachute, you’ll need to provide certain information, including bank account details, proof of income and employment information. By connecting your bank account information using a trusted intermediary called Flinks, this will speed up your application as Flinks pulls that information from your bank account and provides us with the data in real time for our review. We have integrated the Flinks connection step within our secure online portal.

What is Flinks and how does it work?

Flinks is a reputable data company that enables safe and instant transfers of information from your bank simply by signing in to your bank account. When you authorize the transfer of your financial information via Flinks, Parachute can verify your banking information, access your bank statements to verify your income and other employment information, and helps us to speed up your application!

Is Flinks secure?

Yes. Parachute integrates with Flinks because it is a safe and secure way to transfer your banking information. Your account sign in details are encrypted and never displayed, viewed or shared. Flinks is held to the highest security standards and undergoes routine security and privacy audits. For more information, visit flinks.com/security.

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What is MyParachute Loan Account?

MyParachute Loan Account is a self-serve online portal that lets you manage your Parachute Loan and perform activities such as:
· Update your personal information (email, address, phone number, employment details)
· Change your password
· View your loan terms and payment schedule
· View notifications about your loan
· Update your banking information
· Make a payment or pay off your loan
· Request a Payment Holiday
· Apply for a new loan

How do I access MyParachute Loan Account?

Use this URL to log into your MyParachute Loan Account: Parachute (turnkey-lender.com). In the top right-hand corner, select Log In and enter your username and password.

Where do I find my username and password?

We sent your login credentials to you by email when you applied for the Parachute Loan. Your username is your email address and your password was sent to you in an email from ‘MyParachute’. Be sure to add contactus@myparachute.co to your safe senders list if it landed in your junk folder.

What happens if I forgot my password?

Go to the Log In page, enter your username and click Forgot Password. Follow the prompts to reset your password.

How do I make my regular loan payments?

Your regularly scheduled loan payments are automatically withdrawn from your bank account.

I want to make payments from a different bank account, how do I change my banking information?

Login to your MyParachute Loan Account and click on ‘Bank Details’. Click ‘Add Bank Account’ and enter the information prompted to add your new account. Click the ‘star’ symbol to set this account as your default bank account from which all future payments shall be withdrawn.

What happens if my regular scheduled payment falls on a bank holiday or weekend?

Your payment will be withdrawn from your account on the next banking date following the holiday or weekend. In your loan schedule, the payment will appear as paid on the date it is due.

Can I change my payment schedule from monthly to bi-weekly or vice versa?

Yes, regularly scheduled payments can be made on a monthly or bi-weekly schedule to best meet your needs. If you wish to switch your schedule, send an email to contactus@myparachute.co.

My pay schedule has changed and my payment dates no longer fall on a pay date, can I change my loan payment due dates?

Yes, send an email to contactus@myparachute.co advising us of your new pay schedule and we’d be happy to assist you.

How are payments applied to my loan?

All payments, including prepayments, are applied firstly to fees (if any), then to accrued and unpaid interest due, and the balance, if any, is applied to the outstanding principal.

Where can I find the outstanding balance on my loan?

Your MyParachute Loan Account provides you with all the information you’ll need about your loan. In the section that indicates the original loan amount and term, click the up/down arrow (^) to open a new row to display your outstanding balance and outstanding principal.

What’s included in my outstanding balance?

Your outstanding balance includes the principal and interest owing over the term of your loan.

Can I pay off my loan early or make extra payments at any time? Is there any penalty?

Your loan is fully open which means you can pay off your loan early or make extra payments at any time and there is no penalty or fees charged for doing so.

What happens if I make my regular payment early?

Early payments are always applied immediately. Any early payment is firstly applied towards your next regularly scheduled instalment. You must pay the scheduled principal, already accrued interest and fees (if any), in addition to the interest further reduced until the end of the instalment (based on the reduced principal). In the case of an overpayment, the future instalments are recalculated.

If I make a large payment or additional pre-payments will my future payment amounts change?

Yes. If you make an overpayment, the amount of your future payments is reduced based on the reduced remaining principal. The number of future instalments remains the same.

How can I make extra payments (or pre-payments) on my loan?

· Log into your MyParachute Loan Account
· Click on Active Loans and then select ‘Make Payment’
· In the dropdown menu choose Regular Payment
· Under Transaction Amount, enter the amount you wish to pay
· Click Submit

Note: Your bank may have a maximum daily or weekly limit on amounts that can be transferred. For larger payments it may be necessary to make a series of smaller payments over time, or you may send funds via electronic transfer to payments@myparachute.co. You must send us a notification of the payment made with your loan number to contactus@myparachute.co or inquire with us at contactus@myparachute.co for alternate payment methods.

Also note: You must make an extra payment on a regular payment date after your regular payment is processed (which is approximately 10 AM EST) for it to be applied to principal only. If you make a payment not on a payment date, or before your payment is processed, the amount will be credited towards your next upcoming payment.

I want to pay my loan off in full, how can I obtain a payout amount?

· Log into your MyParachute Loan Account
· Click on Active Loans and then select ‘Make Payment’
· In the dropdown menu choose Pay Off
· The amount required to pay the loan in full will be displayed under Transaction Amount
· Click Submit to automatically transfer funds from your account to pay off your loan

Note: Your bank may have a maximum daily or weekly limit on amounts that can be transferred. For larger payments it may be necessary to make a series of smaller payments over time, or inquire with us at contactus@myparachute.co for alternate payment methods.

What happens if I missed a payment or cannot make a payment on time?

We know life happens and unexpected events can occur. If you think you may not be able to make your payment on time, or recently missed a payment, send an email to contactus@myparachute.co and we can work with you to figure out a solution that works.

What is a Payment Holiday?

We know life happens and unexpected events can occur. If, for any reason, you cannot make your payment on time, you can avoid NSF charges by requesting a payment holiday. In your MyParachute Loan Account, click the ‘Payment Holiday’ button in the top right corner. Click the calendar icon and select the date when you will be able to make your next payment. We will contact you and inform you of our decision to approve or reject your Payment Holiday request. You must request this payment holiday at least 2 full business days before your payment due date.

Don't see the answer above?

These frequently asked questions and answers are intended to help you determine whether
Loan Payment Protection Program (LPPP) will meet your needs. These FAQs only apply to
customers who reside in all other provinces of Canada except Quebec. For more information,
you may view the Certificate of Insurance a view Certificate of Insurance

What is the loan payment protection program?

The LPPP is a comprehensive optional insurance program available to customers on
approved Parachute loan applications submitted to Trans Global Insurance company and Trans Global Life Insurance Company, who have requested the coverage, agreed to pay the premium, and continue to pay premiums on a timely basis.

What does the LPPP cover?

If you are eligible, the LPPP provides the following coverages in connection with your
Parachute Loan account:
· Involuntary Unemployment coverage: If you lose your job, the coverage could make up to 12 months of payments, based on your payment frequency, towards your outstanding Parachute balance. This coverage also extends to self-employed individuals.
· Disability coverage: If you become disabled and unable to work, the coverage could make up to 12 months of payments towards your outstanding Parachute balance.
· Critical Illness coverage*: If you or your spouse become diagnosed with a Critical Illness for the first time and survive that First Diagnosis for at least 30 days, the coverage will pay Parachute, an amount equal to the Outstanding Balance at the date of First Diagnosis of the Critical Illness, to a maximum of $25,000.
· Death with Dismemberment coverage**: The coverage will pay Parachute, on Your behalf, upon due proof of the death or dismemberment of You or Your spouse occurring after the effective Date, and while You are covered under the Policy, an amount of insurance equal to the Outstanding Balance of Your Parachute loan amount at the date of death or dismemberment to a maximum of $25,000. If the death or dismemberment of You and Your Spouse occurs simultaneously, only one benefit will be paid.

*The Critical Illness benefit will be paid only once. When You are simultaneously disabled, involuntarily unemployed or involuntarily unemployed as a self-employed, You are entitled to benefits only under one coverage.
‍
** Before the age 65 (71 in BC), the Loan Payment Protection Program does not require that death arise from accidental circumstances. Beginning from age 65 (71 in BC) and thereafter, the LPPP only provides coverage if death arises from accidental circumstances and death must occur within 90 days of the accident.

Who is eligible for coverage?

· A Parachute Primary Loan Borrower
· A Canadian resident
· A person at least 18 years of age

Who is covered?

· The Life and Dismemberment and Critical Illness coverages are available to the primary
Borrower Loan and their Spouse.
· The Disability and Involuntary Unemployment coverages are available only to the Primary Loan Borrower.
· The Primary Loan Borrower is the individual whose name appears first on the Parachute loan agreement (“Borrower”)

How much does the LPPP cost?

The cost for Loan Payment Protection Plan will be calculated by taking the monthly or bi-weekly Premium Rate of 10% multiplied by your regular principal and interest payment, plus applicable taxes, and if your loan balance is zero, your premium payment required would be zero

What are the exclusions or conditions of the coverage?

General exclusions from the coverage include:
· intentionally self-inflicted injury;
· attempted suicide;
· drug, alcohol or solvent abuse;
· the commission, or attempted commission, of an illegal act; or
· military service, declared or undeclared war, or any nuclear, chemical, or biological
contamination resulting from an act of terrorism.

For more information on coverage specific exclusions and conditions of coverage, please see the a sample copy of the certificate of insurance at https://transglobalinsurance.ca/insurance/other/ or view Certificate of Insurance

Expected duration of insurance?

When the insurance starts:
The effective date of the Loan Payment Protection Program is the date that Trans Global
Insurance Company and Trans Global Life Insurance Company receives your application for insurance.

When the insurance ends:
On the sooner of
· The next payment date after the Insured or the Company receive the Insured Debtor’s
written request to end the insurance coverage.
· The date that is thirty-one (31) days from the date the Insured Debtor has been given
notice by the Insured or the Company of termination of this Policy.
· The date when the Insured Debtor’s Financing Contract is terminated.
· The date when the Insured Debtor is more than thirty days (30) delinquent in making
any required payment in respect of his or her account.

However, the insurance ends for all insured people in the event of death. See the Certificate of Insurance at https://transglobalinsurance.ca/insurance/other/ or view Certificate of Insurance for more details.

Can I cancel?

Loan Payment Protection Program is optional, and you can cancel it at any time. If you cancel within the first 30 days, the premiums you paid will be refunded to you. If you cancel any time after 30 days, you will not be entitled to any refund of premiums charged.

What if I already have other insurance?

The LPPP is designed to complement any existing protection by paying in addition to any
other coverage you may have.

How do I make a claim?

To make a claim, follow these steps to contact Trans Global Insurance:

· By calling 1-844-930-6022 between 8:00 a.m. and 5:00 p.m. (MST)
· By email clientcare@transglobalinsurance.ca
· By written notice to TRANS GLOBAL INSURANCE GROUP, 16902-137 Ave. NW, Edmonton, AB T5V 0C8..

How do I make a complaint?

To make a complaint, follow these steps:
· If for some reason you are not satisfied with the resolution to an inquiry or
dissatisfaction, please call 1-844-930-6022 between 8:00 am and 5:00 pm (MT), Monday to Friday.
· Should you require more information regarding the Insurer’s complaint handling
procedure, please visit Trans Global Insurance website to view the complaint resolution
processes which can be found at: https://transglobalinsurance.ca/resolving-complaints/

Who do I contact if I have questions about the loan payment protection program?

If you have any questions about this insurance coverage, contact Trans Global Insurance at 1-844-930-6022.

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