Introduction

The level status impacts account behavior active, suspended, closed and the sub status is reason the account is in that status.
Canopy will automatically move accounts between the statues as their payment behavior changes so to capture custom statuses we recommend using account tagging. See this article to understand more about Account Tagging

Canopy has several options for helping operators close accounts. By utilizing closed sub-statuses, lenders can effectively manage their loan portfolios, track the status of accounts, streamline communication with borrowers, and maintain accurate records for regulatory compliance and reporting purposes.

Closed Account Sub-Statuses

• Charge Off*
• Paid Off*
• Surplus Balance*
• Bankruptcy
• fraud
• inactivity
• risk
• customer_request
• grantor_request
• deceased
• customer_request_pending_payoff
• grantor_request_pending_payoff
• settlement
• administrative

Accounts in a closed status will have certain event activity stopped while payment activity will still continue. Accounts will also have a final statement generated at the end of the cycle when in a closed status. There may be scenarios where an account is closed but then gets set to active, or suspended, based on payment activity such as a payment reversal. The accounts will continue processing events after this change.

List of borrower/operator event activities that continue while in a closed status

• Payments, Payment reversals, Offsets, Refunds, Manual Fees, Prepayment Discounts, Return Check Fees

List of borrower/operator event activities that will not continue while in a closed status

• All new loan originations, Line item loan Interest, and origination fees
• All programmatic fees, interest, and charges

How does it work?

For the most part, account statuses are not automatically changed by Canopy’s system, and they do not kick off any additional behavior in Canopy’s system. Instead, they are used for providing context around the account — for servicing and analytic purposes.

There are a few exceptions; in some cases, Canopy may automatically change an account status in response to some behaviors, for example, if there is a configured policy to do so. These are documented in the table below. Outside of those automated cases though, statuses are expected to be in this article.

Three closed sub-statuses follow this event-driven system pattern:

Charge Off:

• An account will be automatically set to a SUSPENDED::DELINQUENT status after several consecutive underpayments as configured at the product level.
• An account will then be automatically set to CLOSED::CHARGE_OFF after several consecutive underpayments as configured at the product level after SUSPENDED::DELINQUENT.
  • The number of missed payments that trigger suspended DELINQUENTstatuses is done at the product configuration level. See this article to learn more about Delinquency.
• You can use the product_lifecycle_policies to identify the number of times a payment can be late before entering a suspended::delinquent or closed::charge off status

Paid Off:

• Accounts in the Post-promo (pure installment loans) period automatically move to the CLOSED :: PAID_OFF status once the borrower’s full outstanding balance is paid off.
• While an account can be in a CLOSED::PAID_OFF status, there may be scenarios where the account may move into an ACTIVE or SUSPENDED status based on payment activity such as a payment reversal

Surplus Balance:

• an account will be automatically set to CLOSED::SURPLUS_BALANCE after it has been paid off in excess of what was due

Frequently Asked Questions (FAQs)

1. If an account goes into delinquency (suspended, delinquent) if the customer only makes a partial payment not covering the full amount past due will the account remain in the Suspended - Delinquent status until the total amount past due amount is paid (including fees and accrued interest on the late fee) or the account is closed?

Yes, unless the status is manually/programmatically changed via the Edit Account Status endpoint, it will remain in a Suspended - Delinquent status until the full balance owed is repaid (or it is closed)

---

2. If an account is closed will there be any statement_generation webhook events to follow stating the loan is fully repaid?

If the borrower pays off their balance, the account will automatically close after their final statement date, so the final statement webhook will be sent. However, if the account closes for any other reason (manual account status change, charge-off, etc) -- you will not receive any subsequent webhook notifications.