How To Stop A Loan Service Agreement
Normally, a loan SA is automatically stopped when the bill segment for the last payment in the amortization schedule is generated for the loan (refer to Finalizing And Closing A Loan).
If a customer decides to payoff a loan before the term is complete, you can:
- Transfer to the SA maintenance page for the loan service agreement, specify an End Date for the loan, and click Save. This transitions the loan SA to pending stop.
End Date. The loan SA cannot be stopped until the specified end date is reached, so do not specify an end date that is in the future unless you do not want to stop the loan until that date.
Once the loan is in pending stop and the end date has been reached, the system transitions the loan SA to stopped. On the service agreement's normal bill cycle, the system final bills the SA for any outstanding balance plus accrued interest charges.
If you want to stop the loan and create the final bill immediately, complete these additional steps:
- On the loan's SA maintenance page, click the Stop SA button to transition the loan SA to stopped.
- Manually, create a bill for the loan service agreement. Remember that if you only want to generate a bill segment for a specific service agreement (e.g., the loan service agreement), transfer to the bill segment page. From there, you can generate and freeze a bill segment for a specific service agreement. When finished, return to the bill page and complete the bill.
When the customer pays the final bill, the loan SA is closed by the system.
For more information about SA states, refer to The Lifecycle Of A Service Agreement.