Closing a loan prevents future purchases, draws, or advances on the account. Use this tool when a borrower requests to close their Line of Credit or when the account should no longer accept new activity. If the current balance is zero and there are no payments in processing, the account status changes to paid off immediately. If a balance remains, the account stays active until the balance is paid.
Availability: All clients Required permissions: loan:close Loan status: active Loan types: Line of Credit, or installment loans with Multiple Advances
- Closing an account cannot be reversed.
- If the account has an outstanding balance after closing, the borrower must continue making payments until the balance is paid off. If the balance is not resolved within a reasonable period, the account may be charged off.
- This tool is not available for standard installment loans. To end a standard installment loan, use Cancel a loan instead.
- From the agent-view Borrower Portal, open the loan and select Loan options > Close.
- Select a Close reason from the dropdown.
- Enter a Close reason description in the text area. This is required. If your company uses the
locLineClosedcommunication template, this text may appear in the notice sent to the borrower. Write it as a complete sentence or paragraph. - Optionally select Send notice to borrower to email the borrower using the
locLineClosedtemplate. - If your company requires a Case ID, select a case from the Case ID dropdown. See Global behaviors — Case ID requirement.
- Select Close loan.
If the balance is zero and no payments are processing, the loan status changes to paidOff. Otherwise, the account is marked as closed but remains in active status until the balance is resolved.
| Field | Description | Required | Values / Format |
|---|---|---|---|
| Close reason | A category describing why the account is being closed. | Yes | Select: Requested by borrower, Inactivity, Terms, Technical issue, Fraud, Other |
| Close reason description | A detailed explanation of why the account is being closed. Used in borrower communications if a notice is sent. | Yes | Text area |
| Send notice to borrower | Sends the locLineClosed email to the borrower with the close reason description. | No | Checkbox |
| Case ID | The case associated with this action. | Conditional | Select from open cases. Required when forceCaseIdOnAgentActions is enabled. |