Refunds
In some cases, a refund may occur after a bill payment or during the repayment process. Refunds can happen for a variety of reasons and may be initiated by the billing company or by Zirtue.
Depending on when the refund occurs, it may be issued to either the lender or the borrower.
Lenders may receive refunds during the bill payment stage.
Borrowers may receive refunds during the repayment stage.
Each refund is carefully reviewed by Zirtue’s compliance team and recorded as a separate transaction related to the loan.
Refunds During Bill Payment
During the bill payment stage, funds are sent from the lender’s bank account to the borrower’s billing company to pay a bill.
In some situations, the billing company may issue a refund after receiving the payment. When this happens, the refund is typically returned to the lender.
The refund may include:
The principal loan amount
The service fee
If a refund occurs during this stage, the loan may move into a pending state. The lender can then decide how they would like to proceed.
For example, the lender may choose to:
Attempt the payment again
Leave the loan as is
Close the loan
Refunds During Repayment
Refunds can also occur during the repayment stage of a loan.
For example, if there is an issue delivering repayment funds to the lender’s bank account, Zirtue may return those funds directly to the borrower’s bank account.
In some situations, the billing company may also issue a refund after the bill has already been paid and the loan has entered repayment.
When this happens:
Zirtue receives the refund from the billing company
The funds are returned to the borrower
Even if a refund occurs during repayment, the loan may remain active, and the borrower is still responsible for ensuring the lender is repaid in full until the loan is completed.
Example
John (Borrower) requests a Zirtue Pay loan from Sarah (Lender) to help pay his phone bill.
Sarah accepts the loan request.
The payment is successfully sent to the phone company.
John begins making repayments to Sarah.
Later, the phone company decides to issue a refund for the bill payment.
If this happens:
Zirtue receives the refund from the phone company
The refunded funds are sent to John’s (the Borrower) bank account
John must continue repaying Sarah until the loan is fully repaid and closed
Important Note
Refunds can happen for several reasons, including:
Billing adjustments made by the billing company
Duplicate or excess payments
Billing company errors
Payment processing issues
Because refunds can impact the status of a loan, each refund is carefully reviewed by Zirtue and recorded as a separate transaction for transparency.