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
- Refunds are only available for installment loans. For Line of Credit purchase issues, see Manage purchase 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.
- From the agent-view Borrower Portal, open the loan and select Loan options > Issue refund.
- 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.
- 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.
- Optionally enter a Merchant name.
- Select an At fault party from the dropdown.
- Select the Refund amount type: Full to refund the entire eligible amount, or Partial to enter a custom amount.
- If you selected Partial, enter the Refund amount. The amount cannot exceed the eligible refund amount displayed on the form.
- Optionally clear or keep the Send notice to borrower checkbox (selected by default).
- If your company requires a Case ID, select a case from the Case ID dropdown. See Global behaviors — Case ID requirement.
- Select Issue refund.
The refund is applied to the loan. If a notice is enabled, the borrower receives an email with the refund details.
| 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. |
View all refunds issued on the loan and cancel refunds that were applied in error.
- From the agent-view Borrower Portal, open the loan and select Loan options > Manage refunds.
- 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.
- Select the refund you want to cancel. Only refunds in
settledstatus can be selected. - Select Cancel refund.
- In the cancel dialog, select a Cancellation reason from the dropdown.
- Optionally enter additional details in the Reason details text area.
- If your company requires a Case ID, select a case from the Case ID dropdown.
- 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.
| 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. |