A service credit reduces a loan balance similarly to a payment. Use Issue credit to apply a credit to the loan — for example, to compensate for a billing error, adjust interest, or settle a debt. Use Manage credits to backdate a credit to a different effective date or cancel a credit that was issued by mistake.
Availability: All clients Required permissions: transaction:create.servicecredit (to issue); transaction:backdate AND transaction:reverse (both required to manage) Loan status: Issue requires active, accelerated, or chargedOff; Manage requires active, paidOff, accelerated, or chargedOff Loan types: All
- The credit waterfall may differ from the payment waterfall. Your company can configure credits to apply to accrued interest and fees but not principal, or to follow a custom allocation order.
- A service credit with a future effective date is applied on that date. A credit cannot be directly applied to a past date — to backdate a credit, issue it with today's date and then use the Manage Credits tool to change the effective date.
- For Line of Credit loans, you can target a credit to a specific draw or let it allocate across all draws automatically.
- From the agent-view Borrower Portal, open the loan and select Loan options > Issue credit.
- Enter the credit Amount. The maximum amount is displayed on the form.
- Select the Responsible party — the party that is financially responsible for the credit. This affects the lender's accounting but does not change how the credit is applied to the borrower's loan.
- Select the Service credit type from the dropdown.
- Optionally enter a Custom display name to override the default display name in the borrower's Activity view.
- Select an Effective date. By default this is set to today. Selecting a future date schedules the credit. Selecting a past date triggers an account replay.
- For Line of Credit loans, select the scope from the Applicable to dropdown. See Global behaviors — Applicable-to selector.
- If your company requires a Case ID, select a case from the Case ID dropdown. See Global behaviors — Case ID requirement.
- Select Issue credit.
The credit is applied to the loan. The credit appears in the borrower's Activity view.
| Field | Description | Required | Values / Format |
|---|---|---|---|
| Amount | The credit amount. Cannot exceed the maximum amount displayed on the form. | Yes | Currency |
| Responsible party | The party financially responsible for the credit. Does not affect how the credit is applied to the loan. | Yes | Select: Lender, Servicer, Merchant |
| Service credit type | The category of the credit. | Yes | Select: Bad Debt, Bankruptcy, Deceased, Fraud, Usury cap, Rewards, Service credit - agent, Service credit - supervisor, Settlement of debt |
| Custom display name | An optional name that overrides the default display in the borrower's Activity view. | No | Text |
| Effective date | The date the credit takes effect. Future dates schedule the credit. Past dates trigger a replay. | Yes | Date (default: today) |
| Applicable to | Whether to apply the credit to the full line of credit or a specific draw. Only shown for LOC loans. | Conditional | Select: Line of credit and draws, or a specific draw |
| Case ID | The case associated with this action. | Conditional | Select from open cases. Required when forceCaseIdOnAgentActions is enabled. |
View all credits on the loan and take action on individual credits — cancel a credit to reverse its effect, or backdate a credit to a different effective date.
- From the agent-view Borrower Portal, open the loan and select Loan options > Manage credits.
- The credit list displays all credits sorted from newest to oldest. Each row shows the effective date, status, responsible party, and amount.
- Select a credit row to expand it and view details including the unique transaction ID.
Canceling a credit creates a reversal transaction that offsets the original credit. The loan balance increases as if the credit was never issued. Credits can only be canceled in full.
- From the credit list, select a credit in Succeeded status.
- Select Cancel.
- If your company requires a Case ID, select a case from the Case ID dropdown.
- Confirm the cancellation.
The system automatically determines whether to use a cancel or reverse operation based on the transaction state. In both cases, the result is the same — the credit is fully offset.
Eligible credits: Status is succeeded, credit has not already been reversed, and credit reason is not reversal. Loan status must be active, accelerated, or chargedOff.
Backdating changes the effective date and time of a credit. The system replays the loan from the new date.
- From the credit list, select a credit in Succeeded or Pending status.
- Select Backdate.
- Select a new Effective date and time. The date must be between the loan start date and today.
- If your company requires a Case ID, select a case from the Case ID dropdown.
- Confirm the backdate.
Eligible credits: Status is succeeded or pending, credit has not already been reversed, and credit reason is not reversal. Loan status must be active, accelerated, or chargedOff.
| Field | Description | Required | Values / Format |
|---|---|---|---|
| Credit selection | The credit to act on. Select a row from the credit list. | Yes | Credit list (only succeeded or pending credits are actionable) |
| Effective date and time | The new effective date and time (backdate action only). | Yes | Datetime (range: loan start date to today) |
| Case ID | The case associated with this action. | Conditional | Select from open cases. Required when forceCaseIdOnAgentActions is enabled. |