# Issue and manage refunds

Refunds return money to a borrower when a purchase or service financed by the loan is returned or canceled. For example, if a borrower used a loan to buy merchandise and later returned part of it, the merchant's refund reduces the loan balance. If the refund exceeds the outstanding balance, the system creates a reimbursement to send the difference back to the borrower.

**Availability:** All clients
**Required permissions:** `loan.refund:create` (to issue); `loan.refund:list` AND `loan.refund:cancel` (both required to manage)
**Loan status:** Issue requires `active`; Manage requires `active` or `accelerated`
**Loan types:** Installment only

## Before you begin

- Refunds are only available for installment loans. For Line of Credit purchase issues, see [Manage purchase disputes](/servicing-operations/agent-only-tools/agent-tools-disputes).
- If the refund amount is less than the outstanding balance, the borrower may see fewer scheduled payments or a smaller final payment rather than an immediate reduction in the upcoming payment amount.
- If the refund amount exceeds the outstanding balance, the system automatically creates a reimbursement. The borrower receives the difference via their bank account on file within 3–10 business days.
- A refund with a past effective date triggers an account replay, which can take up to 10 minutes.


## Issue a refund

1. From the agent-view Borrower Portal, open the loan and select **Loan options** > **Issue refund**.
2. Select a **Refund date**. By default this is set to today. Select a past date if the refund should have been applied earlier — the system replays the loan from that date.
3. Optionally select any fee refund checkboxes:
  - **Refund origination fees** — Only available when the refund date matches the loan activation date.
  - **Refund late fees** — Cancels late fees charged after the refund date.
  - **Refund other fees** — Cancels dynamic fees (except late fees) charged after the refund date.
4. Optionally enter a **Merchant name**.
5. Select an **At fault party** from the dropdown.
6. Select the **Refund amount type**: **Full** to refund the entire eligible amount, or **Partial** to enter a custom amount.
7. If you selected **Partial**, enter the **Refund amount**. The amount cannot exceed the eligible refund amount displayed on the form.
8. Optionally clear or keep the **Send notice to borrower** checkbox (selected by default).
9. 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).
10. Select **Issue refund**.


The refund is applied to the loan. If a notice is enabled, the borrower receives an email with the refund details.

### Issue refund field reference

| Field | Description | Required | Values / Format |
|  --- | --- | --- | --- |
| **Refund date** | The effective date of the refund. Past dates trigger an account replay. | Yes | Date (range: loan activation date to today) |
| **Refund origination fees** | Refunds the origination fee. Only available when the refund date matches the loan activation date. | No | Checkbox |
| **Refund late fees** | Cancels late fees charged after the refund date. | No | Checkbox |
| **Refund other fees** | Cancels dynamic fees (except late fees) charged after the refund date. | No | Checkbox |
| **Merchant name** | The name of the merchant associated with the refund. | No | Text |
| **At fault party** | The party responsible for the refund. Follow your company's policy to select the correct party. | Yes | Select: Lender, Servicer, Merchant, Borrower |
| **Refund amount type** | Whether to refund the full eligible amount or a partial amount. | Yes | Radio: Full, Partial |
| **Refund amount** | The custom refund amount. Must be less than or equal to the eligible refund amount. Only shown when **Partial** is selected. | Conditional | Currency |
| **Send notice to borrower** | Sends an email to the borrower with refund details. | No | Checkbox (default: selected) |
| **Case ID** | The case associated with this action. | Conditional | Select from open cases. Required when `forceCaseIdOnAgentActions` is enabled. |


## Manage refunds

View all refunds issued on the loan and cancel refunds that were applied in error.

1. From the agent-view Borrower Portal, open the loan and select **Loan options** > **Manage refunds**.
2. The form displays a list of all refunds on the loan, sorted from newest to oldest. Each entry shows the refund date, status, at-fault party, and amount.
3. Select the refund you want to cancel. Only refunds in `settled` status can be selected.
4. Select **Cancel refund**.
5. In the cancel dialog, select a **Cancellation reason** from the dropdown.
6. Optionally enter additional details in the **Reason details** text area.
7. If your company requires a Case ID, select a case from the **Case ID** dropdown.
8. Confirm the cancellation.


Canceling a refund reverses it completely, restoring any fees that were waived as part of the original refund. The cancellation triggers an account replay that can take 5–10 minutes.

**Important:** A canceled refund cannot be restored. If you need to reissue the refund at a different amount, cancel the original refund and then issue a new one.

### Manage refunds field reference

| Field | Description | Required | Values / Format |
|  --- | --- | --- | --- |
| **Refund selection** | Select the refund to cancel. Refunds not in `settled` status are disabled. | Yes | Radio group from refund list |
| **Cancellation reason** | The reason for canceling the refund. | Yes | Select: Wrong amount or details, Processing error, Other |
| **Reason details** | Additional context about the cancellation. | No | Text area |
| **Case ID** | The case associated with this action. | Conditional | Select from open cases. Required when `forceCaseIdOnAgentActions` is enabled. |


## Related pages

- [Agent-only loan tools](/servicing-operations/agent-only-tools/agent-tools-overview)
- [Charge off, update details, and reverse charge-off](/servicing-operations/agent-only-tools/agent-tools-charge-off)
- [Manage purchase disputes](/servicing-operations/agent-only-tools/agent-tools-disputes)