# Cancel a loan

Canceling a loan voids it entirely — the loan is treated as if it never existed. Use this tool when a loan was created in error, issued with wrong terms, assigned to the wrong borrower, or needs to be voided for another reason. If the loan is reported to credit bureaus, you must provide a Metro 2 account status code so the system can update the bureau records.

**Availability:** All clients
**Required permissions:** `loan:cancel`
**Loan status:** `active`, `pending`, or `originated`
**Loan types:** All

## Before you begin

- Canceling a loan cannot be undone. Verify that the loan should be canceled before proceeding.
- If the loan is actively reported to a credit bureau, the form requires a Metro 2 account status code. If you are unsure which code to use, consult your compliance team.
- For Line of Credit loans, you can cancel the entire line or a specific draw.


## Cancel a loan

1. From the agent-view Borrower Portal, open the loan and select **Loan options** > **Cancel**.
2. If the loan is a Line of Credit, select the scope from the **Applicable to** dropdown: the full line of credit and draws, or a specific draw. This field does not appear for installment loans. See [Global behaviors — Applicable-to selector](/servicing-operations/agent-only-tools/agent-tools-overview#applicable-to-selector).
3. Select a **Reason** from the dropdown.
4. If the loan is reported to a credit bureau, select a **Metro 2 account status code** from the dropdown. This field only appears when active credit reporting exists for the loan.
5. Optionally select **Force** to override validation checks.
6. Optionally select **Send cancellation notice** to email the borrower. This field only appears when canceling the entire loan (not a specific draw).
7. If your company requires a Case ID, select a case from the **Case ID** dropdown. See [Global behaviors — Case ID requirement](/servicing-operations/agent-only-tools/agent-tools-overview#case-id-requirement). This field only appears when canceling the entire loan.
8. Select **Cancel account**.


The loan status changes to `canceled`.

## Field reference

| Field | Description | Required | Values / Format |
|  --- | --- | --- | --- |
| **Applicable to** | Whether to cancel the full Line of Credit or a specific draw. | Conditional | Select: Line of credit and draws, or a specific draw. Only shown for LOC loans. |
| **Reason** | The reason for canceling the loan. | Yes | Select: Technical issue, Wrong loan terms, Wrong borrower, Other |
| **Metro 2 account status code** | The status code sent to credit bureaus when updating the tradeline. | Conditional | Select: DA, 13, 61, 62, 63, 93, 95, 96, 97, DF. Only shown when the loan has active credit reporting. |
| **Force** | Overrides validation checks that would otherwise prevent cancellation. | No | Checkbox |
| **Send cancellation notice** | Sends an email to the borrower informing them that the loan has been canceled. | No | Checkbox. Only shown when canceling the entire loan. |
| **Case ID** | The case associated with this action. | Conditional | Select from open cases. Required when `forceCaseIdOnAgentActions` is enabled. Only shown when canceling the entire loan. |


### Metro 2 account status codes

The following codes are available when canceling a loan with active credit reporting. Select the code that best describes the account situation.

| Code | Description |
|  --- | --- |
| DA | Account closed — at consumer's request |
| 13 | Paid or closed account / zero balance |
| 61 | Account paid in full — was a voluntary surrender |
| 62 | Account paid in full — was a collection account |
| 63 | Account paid in full — was a repossession |
| 93 | Account assigned to internal or external collections |
| 95 | Account transferred or sold |
| 96 | Account transferred to another company |
| 97 | Unpaid balance reported as a loss |
| DF | Account closed — at credit grantor's request |


## Related pages

- [Agent-only loan tools](/servicing-operations/agent-only-tools/agent-tools-overview)
- [Close a loan](/servicing-operations/agent-only-tools/agent-tools-close)
- [Manage credit reporting](/servicing-operations/agent-only-tools/agent-tools-credit-reporting)