U.S. patent application number 09/745406 was filed with the patent office on 2001-05-10 for automated debt payment system and method using atm network.
Invention is credited to Hinkle, D. Allen, Martin, Joseph B. JR..
Application Number | 20010001148 09/745406 |
Document ID | / |
Family ID | 25479377 |
Filed Date | 2001-05-10 |
United States Patent
Application |
20010001148 |
Kind Code |
A1 |
Martin, Joseph B. JR. ; et
al. |
May 10, 2001 |
Automated debt payment system and method using ATM network
Abstract
An electronic funds transfer methodology for providing access to
a plurality of non-bank loan payment processors (loan servicers)
through established ATM (automated teller machine) networks,
thereby creating a payment system designed to allow a consumer to
initiate an electronic transfer of funds from a primary bank
transaction account (e.g., checking account, savings account) to a
loan servicer to satisfy an outstanding consumer debt or payment
obligation. Automated payment of consumer debt obligations through
use of an ATM network is facilitated by a processor and associated
software, which are employed to combine specific consumer loan
payment data with specific depository transaction account
information through an electronic ATM network for the purpose of
affecting a more efficient loan payment/servicing process.
Information relevant to the loan payment is electronically
communicated from the loan servicer through software designed to
access the servicer's loan database, extract specific fields from
designated records, and communicate this information to a third
party central computer. The third party central computer reformats
the data as necessary, aggregates this information with any similar
information received from other loan or debt servicers, and
transmits the aggregated information to one or more ATM transaction
processors.
Inventors: |
Martin, Joseph B. JR.;
(Falls Church, VA) ; Hinkle, D. Allen; (Reston,
VA) |
Correspondence
Address: |
NIXON PEABODY, LLP
8180 GREENSBORO DRIVE
SUITE 800
MCLEAN
VA
22102
US
|
Family ID: |
25479377 |
Appl. No.: |
09/745406 |
Filed: |
December 26, 2000 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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09745406 |
Dec 26, 2000 |
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08943284 |
Oct 3, 1997 |
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Current U.S.
Class: |
705/39 |
Current CPC
Class: |
G06Q 20/1085 20130101;
G06Q 20/023 20130101; G06Q 20/14 20130101; G06Q 20/18 20130101;
G06Q 20/102 20130101; G06Q 20/04 20130101; G06Q 20/10 20130101;
G06Q 30/04 20130101; G06Q 20/02 20130101 |
Class at
Publication: |
705/39 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A method of processing a debt payment on a consumer debt
obligation using an ATM network comprising the steps of:
communicating consumer debt obligation information for at least one
consumer debt obligation from at least one debt servicer
responsible for said at least one consumer debt obligation to a
third party payment facilitator when a consumer has indicated to
the at least one debt servicer that the consumer elects to use the
third party payment facilitator to effect future payments over an
ATM network; storing said consumer debt obligation information in a
computer database separate from said at least one debt servicer;
receiving command information with an ATM network access device
from the consumer sufficient to identify the consumer debt
obligation; accessing said consumer debt obligation information to
retrieve at least a portion of said consumer debt obligation
information corresponding to said command information; and
transmitting said portion of said consumer debt obligation
information to a transaction processor associated with the ATM
network to facilitate a transaction requesting that funds be
transferred from an account associated with said consumer to at
least one account at a banking institution associated with said at
least one debt servicer whereby a payment on the consumer debt
obligation is made.
2. The method of claim 1 wherein said at least one banking
institution comprises a first banking institution and a second
banking institution, and wherein a first portion of said funds is
transferred to an account at said first banking institution and a
second portion of said funds is transferred to an account at said
second banking institution.
3. The method of claim 1 further comprising the step of converting
said consumer debt obligation information communicated in a first
data format from said at least one debt servicer into a second data
format.
4. The method of claim 3 wherein said first data format is
incompatible with the ATM network and said second data format is
compatible with said ATM network.
5. The method of claim 3 wherein said second data format complies
with one of the ANSI X.9, ANSI X.12, and ISO 8583 standards.
6. The method of claim 1 further comprising the step of verifying
that sufficient funds are present in said account associated with
said consumer to satisfy said consumer debt obligation.
7. The method of claim 1 further comprising the steps of receiving
a confirmation record from said transaction processor, said
confirmation record indicating that said funds have been
transferred, and modifying said computer database in response to
said confirmation record.
8. The method of claim 7 further comprising the step of
transmitting a confirmation record to said at least one debt
servicer institution through a communications path separate from
said ATM network.
9. A method for providing information concerning a consumer debt
obligation to a consumer of an ATM network comprising the steps of:
communicating consumer debt obligation information for at least one
consumer debt obligation from at least one debt servicer
responsible for said at least one consumer debt obligation to a
third party payment facilitator when a consumer has indicated to
the at least one debt servicer that the consumer elects to use the
third party payment facilitator; storing said consumer debt
obligation information in a computer database separate from said at
least one debt servicer; receiving commands with an ATM network
access device from the consumer identifying the consumer debt
obligation and the information about said consumer debt obligation
desired by the consumer; accessing said computer database in
response to said commands to retrieve at least a portion of said
consumer debt obligation information from said database;
transmitting said portion of said consumer debt obligation
information through said ATM network to said ATM network access
device; and providing, through said ATM network access device, said
portion of said consumer debt obligation information to the
user.
10. A system for processing a debt payment on a consumer debt
obligation using an ATM network comprising: debt servicer access
means for communicating consumer debt obligation information for at
least one consumer debt obligation from at least one debt servicer
responsible for said at least one consumer debt obligation to a
third party payment facilitator when a consumer has indicated to
the at least one debt servicer that the consumer elects to use the
third party payment facilitator; storage means connected with said
debt servicer access means for storing said consumer debt
obligation information in a computer database separate from said at
least one debt servicer; ATM network access means connected with
said storage means for transferring at least a portion of said
consumer debt obligation information to an ATM network.
11. The system of claim 10 further comprising conversion means
connected between said debt servicer access means and said storage
means for converting said consumer debt obligation information
communicated from said at least one debt servicer from a first
format compatible with said at least one debt servicer to a second
format compatible with said ATM network.
12. The system of claim 11 wherein said second format complies with
one of the ANSI X.9, ANSI X.12, and ISO 8583 standards.
13. The system of claim 10 wherein said at least one debt servicer
comprises a first debt servicer and a second debt servicer, and
wherein said consumer debt obligation information communicated from
said first debt servicer is in a first format and said consumer
debt obligation information communicated from said second debt
servicer is in a second format different from said first
format.
14. The system of claim 10 further comprising: input means for
receiving commands using an ATM network access device from a user
identifying the consumer debt obligation and the consumer debt
obligation information desired by the user; database accessing
means connected with said input means and said ATM network access
means for accessing said computer database in response to said
commands to retrieve at least a portion of said consumer debt
obligation information from said database; transmission means
connected with said database accessing means for transmitting said
portion of said consumer debt obligation information through said
ATM network to said ATM network access device; and information
providing means connected with said transmission means for
providing, through said ATM network access device, said portion of
said consumer debt obligation information to the user.
15. The system of claim 10 further comprising: input means for
receiving commands using an ATM network access device from a user
identifying the consumer debt obligation; database accessing means
connected with said input means and said ATM network access means
for accessing said computer database in response to said commands
to retrieve at least a portion of said consumer debt obligation
information from said database; transmission means connected with
said database accessing means for transmitting said portion of said
consumer debt obligation information to a transaction processor
associated with the ATM network to facilitate a transaction
requesting that funds be transferred from an account associated
with said consumer to an account at a banking institution
associated with said at least one debt servicer.
16. A method of providing a reminder of a payment due on a debt
obligation to a consumer using an ATM terminal during an ATM
transaction session comprising the steps of: communicating consumer
debt obligation information from at least one debt servicer
responsible for said debt obligation to a third party payment
facilitator when the consumer has indicated to the at least one
debt servicer that the consumer elects to use the third party
payment facilitator; accessing through an ATM network, in response
to initiation of the ATM transaction session by the consumer, a
database including the consumer debt obligation information said
consumer debt obligation information including at least a payment
due date, said database being associated with the third party
payment facilitator; retrieving from said database, said payment
due date for said consumer debt obligation; and displaying on the
ATM terminal an indication that a payment is due in response to
said payment due date for said consumer debt obligation.
Description
RELATED APPLICATION DATA
1. This application is a continuation of application Ser. No.
08/943,284 filed on Oct. 3, 1997, the disclosure of which is
incorporated herein by reference.
BACKGROUND OF THE PRESENT INVENTION
2. Numerous processes and devices exist for facilitating electronic
payments. Today, virtually all domestic banking institutions offer
customers the ability to conduct a limited number of electronic
transactions either from an automated teller machine (ATM) located
on-site at the institution, or from a remote ATM serving the
institution. The remote services are made possible in part through
the development of communications systems that provide for the
interconnection of many clearing house or regional, national, or
international electronic funds transfer (EFT) networks. These
networks are specialized digital packet networks that communicate
with various ATM transaction processors and service providers using
standard message protocols developed by ANSI and others. A
more-or-less standard, generic ATM interface has developed in the
banking industry, making it relatively easy for a consumer to use
any ATM on any ATM network once he has learned how to interact with
this more-or-less standard interface. Of course, ATMs produced by
different manufacturers may differ in key placement, number of
keys, key legends, screen size, etc. However, there has been a
trend toward standardization of these features so as to minimize
user discomfort with using a "foreign bank" ATM.
3. FIG. 1 illustrates a block diagram of an existing prior art
system used to process a typical ATM transaction, such as a cash
withdrawal or balance inquiry, shown generally at 8. As seen in
FIG. 1, the ATM transaction system includes an ATM transaction
processor 14, an ATM network access device (such as an ATM
terminal) 15, an ATM banking institution 16, a consumer banking
institution 18 (where the ATM banking institution 16 and the
consumer banking institution 18 can be one and the same), and an
automated clearing house (ACH) network 20. ATM network access
device 15 is connected to ATM banking institution 16 through a
suitable communications path 17. ATM transaction processor 14 is
connected with a host computer at ATM banking institution 16
through communications path 19, with a host computer at consumer
banking institution 18 through communications path 21 and with ACH
network 20 through communications path 23. As is known to those of
skill in the art, appropriate information is exchanged between ATM
transaction processor 14, ATM banking institution 16, consumer
banking institution 18, and ACH network 20 to effect an ATM
transaction.
4. ATM network access device 15 may be physically co-located with
the ATM banking institution 16, or may be remotely located with
respect thereto. In operation, ATM network access device 15 serves
as an interface between a user and the ATM network to receive input
from the user and to provide necessary output (and funds, when
necessary) to the user. ATM network access device 15 retrieves user
information from an ATM card inserted by a user to initiate an ATM
transaction, and receives appropriate associated PIN information
and transaction information from the user. This information is
passed through communication path 17 to the ATM banking institution
16. As necessary, information is then transferred through
communications path 19 to ATM transaction processor 14. ATM
transaction processor 14 identifies the consumer banking
institution 18 from the information retrieved from the user's ATM
card, and passes the necessary transaction information entered by
the user to the appropriate consumer banking institution 18 through
communications path 21.
5. Consumer banking institution 18 verifies the user's account data
and verifies that the user has sufficient funds available for the
requested transaction. Consumer banking institution 18 then
forwards an authorization message (either a deny transaction
request message or a proceed with transaction message, for example)
to the ATM transaction processor 14 through communications path 21.
ATM transaction processor 14 then forwards the authorization
message back to the ATM banking institution 16 through
communications path 19. These messages serve to confirm that the
transaction is to proceed or be prohibited. Upon receipt of the
authorization message, the ATM banking institution 16 forwards the
authorization to the ATM network access device 15 using
communications path 17. Based on the authorization received, the
ATM network access device 15 provides suitable information and
funds, if requested, to the user. The user then has the option of
terminating the session, or initiating another transaction, which
would proceed in a similar fashion.
6. Once the consumer has terminated the ATM banking session, the
ATM transaction processor 14 forwards a confirmation record of the
completed transaction to the ATM banking institution 16 using
communications path 19, and forwards an identical confirmation
record to the consumer's banking institution 18 using
communications path 21. ATM transaction processor 14 also forwards
a record of the transaction and information to facilitate the
appropriate debiting and crediting of the necessary accounts to a
designated ACH network 20 through communications path 23. ACH
network 20 then operates to debit (where the user has requested a
withdrawal of funds, for example) the user's account at the
consumer banking institution 18 using communications path 25, and
to issue a credit to the ATM banking institution 16 using
communications path 27. Finally, ATM transaction processor 14
creates a record of the transaction and writes that record to a
back-up data and transactions log 13 for any future reference, if
necessary.
7. Most ATMs, however, do not currently permit customers to pay
bills, make debt payments or conduct other complex financial
transactions, but instead typically limit the user to withdrawals,
account inquiries, account transfers, and, if the ATM the user
accesses is that of his own bank, deposits. There are some
circumstances where ATMs have been used to conduct transactions,
such as bill payment transactions, in addition to those described
above. However, in the case of bill payment transactions, the
consumer is usually limited to making bill payments only to certain
entities specified in advance by the bank, and is required to
complete a somewhat onerous registration process for establishing
ATM-based bill payment authority or privileges. Other ATM terminals
have been modified to accept almost any bill payment from
consumers. In such instances, the ATM functions more like a mail
box: the consumer initiates a bill payment, keys in the amount to
be paid, and places the payment coupon and the payment amount,
either as cash or a check, into an envelope and "deposits" the bill
payment into the ATM. In both of the scenarios described above, the
bank assumes the role of a payment processor, separating and
forwarding consumer bill payments by vendor. Neither payment
methodology involves an electronic funds transfer, and neither the
bank nor the vendor realizes any noticeable improvement in
processing efficiency.
8. While personal banking and home banking initiatives have become
more prolific in the past several years, the costs associated with
such efforts, both for the bank and the consumer, have proven
prohibitive. Service providers incur very high communications costs
in linking their central processors with personal computer (PC)
users, banks, and payees (merchants). Many payees also do not
accept electronic payments (for lack of substantial volume),
forcing service providers to make costly paper-based payments.
Settlement processing can be costly, as banks must install special
purpose software and operating procedures. These and other costs
have been passed along to consumers, thereby dampening the demand
for home banking services.
9. These limitations are reflected in U.S. Pat. No. 5,220,501,
Lawlor et al. The process for an electronic monetary system as
described by Rosen in U.S. Pat. No. 5,453,601 addresses some of the
problems associated with certain payees not accepting electronic
payments, but the described invention has not yet been widely
implemented, if at all. In addition, many banks have developed PC
and telephone banking processes merely to allow the consumer to
create a paper check at the bank through a PC or telephone. The
bank then processes the check in the same manner as
consumer-written checks. While the consumer has not had to
physically write a check, the bank must remit the paper payment
created by the consumer, with little or no operational savings or
efficiencies to the bank.
10. The effort to provide more home banking services has prompted a
number of inventions that provide access to accounts through
various modifications of pre-existing hardware that dial into
payment networks or bank systems for processing transactions. These
are described in U.S. Pat. Nos. 5,025,373; 5,591,949; 5,424,938;
5,050,297; 5,336,870. Virtually all of these inventions only
increase the accessibility of the existing ATM/banking process
without addressing the functionality of accessing and processing
loan and other debt payments serviced by non-depositories.
11. Another similar approach that has met limited success has been
the establishment of automatic drafting mechanisms for payment of
specific consumer obligations. In this scenario, the consumer
provides the vendor with information regarding his bank's automated
clearing house (ACH) routing number and his account number. The
vendor then drafts the amount owed, usually according to a set
schedule, from the consumer's account each month. The process is
efficient for the vendor and for the bank, but leaves the consumer
with little control as to the timing of the draft and the amount of
the draft. It is not until the draft has already occurred that the
consumer is aware of the transaction, and thus able to verify the
transaction's accuracy. Nor does the consumer receive a record of
the transaction until the bank issues a periodic statement of the
account. This is the type of invention described by Duval, et al.
in U.S. Pat. No. 5,469,991, a pre-authorized billing system.
12. Finally, point-of-sale (POS) transactions are growing more
prevalent, with ATM card readers and key pads appearing in grocery
stores, convenience stores and gas stations, among others. While
the predominant use of the POS terminals has been to speed the
check-out time (increase payment efficiency), POS debit
transactions have also provided a substitution for cash and have
served to reduce the number of checks returned to the vendor due to
insufficient consumer funds balances. During a POS transaction, the
consumer swipes the ATM (or debit) card through a card reader.
Assuming an on-line debit transaction (versus an off-line
credit-oriented transaction), the consumer enters a unique personal
identification number (PIN), and then waits for the card
reader/register to communicate to the transactions processor the
total amount of the sale (i.e., the amount to be debited from the
consumer's transaction account). (In U.S. Pat. No. 5,484,988,
Delfer describes a similar process that scans a consumer's account
information from a physical paper check presented at the
point-of-sale.) After receiving verification from the consumer's
bank that sufficient funds exist in the consumer's account to cover
the transaction and an authorization from the consumer's bank to
proceed, the transactions processor forwards to the POS terminal a
transaction approval message (or, in the case of insufficient
funds, a denial). Funds are routed from the consumer's bank account
to the vendor through an ACH network. This scenario provides
efficiencies for the vendor, the bank, and the consumer, but
unfortunately requires a purchase transaction to initiate the
process. Such a requirement is unrealistic for the repayment of a
loan or other debt obligation.
SUMMARY OF THE INVENTION
13. In view of the foregoing, it is an object of the present
invention to provide a system and method for automated debt payment
through the use of ACH debiting and crediting of various payor and
payee accounts.
14. It is yet another object of the present invention to provide a
system and method for automated debt payment wherein individual
consumer debt payments (i.e., debits) can, if necessary depending
on the type of debt, be automatically divided among (i.e., credited
to) a plurality of payee accounts.
15. It is a still further object of the present invention to
provide a system and method for automated debt payment that uses an
established ATM network to receive information from a consumer
identifying a type of debt payment to make and, if he wishes to pay
more than the minimum amount due, an amount to pay.
16. It is a still further object of the present invention to
provide a system and method for automated debt payment that
interfaces between existing ATM networks and debt servicer systems
to facilitate the payment of debt obligations by a consumer through
the use of the ATM network.
17. It is yet another object of the present invention to provide a
system and method for automated debt payment that operates to
convert debt information between formats used by various debt
servicers and a format used by an ATM network.
18. It is also an object of the present invention to reduce payment
processing costs for debt servicers, such as loan servicers (e.g.,
mortgage, auto and home equity loan servicers), other monthly
consumer debt and bill payment processors (e.g., credit card
companies, public utilities, and phone and cable companies), and
time payment processors (e.g. leasing and rental companies) through
the use of ACH debiting and crediting of various payee and payor
accounts involved, including those accounts into which segregated
portions of the consumer payment must be deposited.
19. It is yet another object of the present invention to provide a
system and method for automated debt payment that reminds a user of
an ATM, during an ATM banking session, that a loan or debt payment
is due or past due, thereby prompting the consumer to transact the
payment of that loan or debt obligation at that time.
20. Yet a further object of the present invention is to make the
debt payment process easier and less costly for the consumer by
eliminating the need for the consumer to write a check, keep track
of payment coupons or monthly statements, and to eliminate postage
costs and any uncertainty related to items being lost in the
mail.
21. An additional object of the present invention is to ensure that
consumer payments are made in amounts acceptable to the loan
servicer, thereby eliminating uncertainties with respect to
consumer intent that occurs when payments are submitted for amounts
other than that which the debt servicer is expecting.
22. A further object of the present invention is to facilitate the
payment of consumer debt obligations where the amount of the
obligation due each month is not a perpetually fixed amount.
23. It is also an object of the present invention to provide a
system and method for automated debt payment wherein debt
obligation information (i.e., minimum payment amount due, due date)
is periodically updated from debt servicers records.
24. Yet another object of the present invention is to facilitate
the payment of past due consumer debt obligations, where such
obligations may be subject to a penalty charge, thereby affecting
(or increasing) the minimum payment amount due.
25. Another object of the invention is to eliminate costs for the
servicer and the consumer related to returned items (i.e., items
returned for insufficient funds).
26. A still further object of the invention is to provide the
consumer with direct and timely access to loan balance and payment
information without having to contact the loan servicer.
27. Yet another object of the invention is to integrate, via batch
processing, or make available, via a communications connection such
as a modem connection, non-depository (i.e., non-bank) controlled
consumer loan, debt and other obligation payment data to
depository-controlled ATM transaction networks.
28. A further object of the invention is to facilitate any
reconciling and reporting that the loan servicer must perform by
reducing human intervention in those processes and therefore
reducing human error.
29. These and other objects are achieved by the present invention,
which provides an automated debt payment system and method for
providing access to a plurality of non-bank loan payment processors
(loan servicers) through established ATM networks, thereby creating
a payment system designed to allow a consumer to initiate an
electronic transfer of funds from a primary bank transaction
account (e.g., checking account, savings account) to a loan
servicer to satisfy an outstanding consumer debt or payment
obligation. The present invention provides a system and method to
facilitate automated payment of consumer debt obligations through
the use of an ATM network, wherein a transactions processor and
proprietary software are employed to combine specific consumer loan
payment data with specific depository transaction account
information for the purpose of effecting a more efficient loan
payment/servicing process. Information relevant to the loan payment
is electronically communicated from the loan servicer through
software designed to interact with the servicer's loan database,
extract specific fields from designated records, and communicate
this information to a third party loan payment facilitator's
central computer. The third party loan payment facilitator's
central computer reformats the data as necessary, appends this
information with any similar information received from other loan
or debt servicers, and transmits the appended information to one or
more ATM transaction processors.
30. All loan servicer data will be subject to standardization,
since data received from loan servicers by the 3rd party central
computer will consist of multiple file and field layouts and
descriptions. Once all data has been received from contracting loan
servicers, the central computer will translate each loan servicer's
data into a common, standard format complying with ANSI X.9, ANSI
X.12, ISO 8583 or other suitable standards as adopted by the
financial services and ATM transactions processing industries. Once
converted, standardized records files will be appended.
Standardized records will be available to ATM transaction
processors either in batch transmittal or on-line mode during
consumer ATM transactions. Batch transmittal will require the
processor to temporarily store (i.e., update daily) loan servicer
records internally in database format either as a part of or
separate from other consumer depository account records. Processors
not wishing to store loan servicer records on-site will be able to
access the central computer via standard communications paths, such
as a dial-up modem connection, lease line, or TCP/IP, during any
on-line consumer ATM transaction. Either access method will provide
the ATM transaction processor access to the consumer's loan or debt
payment obligations during any consumer-initiated ATM transaction,
thereby allowing the processor to facilitate the consumer's payment
request or to prompt the consumer to make a debt payment based upon
dictated transaction precedence logic.
31. In accordance with the present invention, an ATM banking
institution modifies existing ATM screens to allow for loan
payment, but is otherwise not involved in the process of allowing
the consumer to access the loan payment process nor in restricting
the institutions whose obligations would be paid through the ATM
network. In addition, the present invention fully incorporates
electronic funds transfers through EFT and ACH networks, thus
offering loan servicers and payment processors opportunities for
significant improvements in processing efficiency.
32. Where specific loan investors require that the funds from their
loans be kept separate and apart from loans processed by the
servicer for other investors, the present invention provides for
ACH debiting and crediting of the various payee and payor accounts
involved, including those accounts into which segregated portions
of the consumer payment must be deposited. To illustrate, in the
case of mortgage loans, a single loan servicer might process
monthly mortgage payments for loans owned by Fannie Mae, Freddie
Mac, Ginnie Mae, the Federal Housing Administration, and other
private investors. Payments received on Fannie Mae loans must be
deposited to an account separate from payments received on any
other non-Fannie Mae loans. Additionally, the principal and
interest portion of the mortgage payment must be deposited to an
account separate from the real estate taxes, hazard insurance and
mortgage insurance premium portions of the payment. In all, a
single consumer check received by a mortgage loan servicer as a
monthly mortgage payment may first have to be deposited to one
account, and the representative dollar amount later divided,
separated and deposited to three or more separate accounts.
Similarly, a credit card servicer might process monthly consumer
credit card payments for several credit card issuers. Again,
payments received for the accounts of separate card issuers must be
deposited separately and apart from payments received for the
accounts of other card issuers. Through the use of ACH debiting and
crediting, and particularly through the issuance of multiple ACH
credits to effect the transfer of funds to multiple different
accounts, payment processing costs are reduced for loan and debt
servicers.
33. In accordance with this feature of the present invention, the
complexities of segregating consumer payments into separate
depository (i.e., custodial) accounts is reduced. Upon consumer
initiation of a debt payment via an ATM terminal, the ATM
transactions processor will retrieve the consumer's debt payment
data. This data will include such information as the total dollar
amount of the payment due, the identity of the payee, the payee's
ACH routing number, and the appropriate account number of the bank
account to which the consumer's payment is to be deposited (i.e.,
electronically transferred). For transactions such as mortgage
payments, the payment data retrieved by the ATM transactions
processor will further include the subtotal amounts of the
consumer's payment representing the principal and interest portion,
the real estate tax portion, the insurance portion, etc., as well
as the separate depository account numbers into which those
subtotal amounts are to be electronically transferred. From the
consumer's perspective, his transaction account will be debited for
a single dollar amount. However, during the actual electronic
transfer of funds from the consumer's account to the payee, that
single debit amount will be further divided and routed to separate
depository accounts by the issuance of multiple ACH credits.
34. This feature (i.e., that of electronically segregating the
payment debit into multiple depository credits) marks a significant
improvement over existing automatic drafting and debit payment
processes. Consumer payments that do not require segregation into
separate custodial accounts (i.e., monthly utility payments) will
be facilitated through the issuance of a single ACH debit and a
single ACH credit, thereby transferring the payment amount from the
consumer's transaction account and depositing that full payment
amount into one designated depository account.
35. In accordance with the present invention, a messaging (or
reminder) prompt is provided to consumers during ATM transactions,
indicating that a loan or debt payment is due or past due, thereby
prompting the consumer to transact the payment of that debt or loan
obligation at that time. Messaging prompts are date sensitive,
based upon a logical comparison of the current day's date to the
payment due date recorded in the consumer's loan payment record
available to the ATM transaction processor through a 3rd party debt
payment facilitator. In the context of current ATM transaction
protocols, this feature is also unique to the present invention.
While serving as a reminder function for the consumer, this feature
offers the loan servicer the ability to eliminate the mailing of
monthly payment reminders and/or past due notices.
36. The present invention also eliminates the need for the consumer
to write a check, keep track of payment coupons or monthly
statements, and will eliminate postage costs and any uncertainty
related to items being lost in the mail. In this manner, the
present invention makes the payment process easier and less costly
for the consumer.
37. The present invention also operates to ensure that consumer
payments are made in amounts acceptable to the loan servicer,
thereby eliminating uncertainties with respect to consumer intent
that occurs now when payments are submitted for amounts other than
that which the servicer is expecting. The invention will not allow
the consumer to remit a payment amount less than the minimum
payment due as displayed on the ATM screen to the consumer. Any
dollar amounts remitted by the consumer, via the invention, in
excess of the minimum payment due are automatically applied to debt
principal reduction. Furthermore, since consumers will only be able
to remit payments electronically via an ATM when there are
sufficient funds in the designated transaction account to cover the
payment, costs for the servicer and the consumer related to
returned items (i.e., non-sufficient funds) will be eliminated.
38. The present invention also facilitates the payment of consumer
debt obligations where the amount of the obligation due each month
is not a perpetually fixed amount. Utility bills vary from one
month to the next. The minimum payment due, and the actual amount
paid by consumers, on most credit and/or charge cards also
typically varies from one month to the next. Mortgage loan payments
can change due to the imposition of adjustable interest rates. The
present invention is designed to receive updated payment
information from loan and debt servicers on a daily basis, thus
ensuring that the minimum payment amount due as displayed to the
consumer on the ATM screen complies with the payment terms required
by the respective loan servicer.
39. The present invention further operates to facilitate the
payment of past due consumer debt obligations, where such
obligations may be subject to a penalty charge, thereby affecting
(or increasing) the minimum payment amount due. For example, a
payment due today may be subject to a late charge if received
tomorrow, thereby increasing the amount of the obligation due if
the payment is transacted by the consumer tomorrow. Again, because
the present invention receives updated payment information from
loan and debt servicers on a daily basis, the minimum payment
amount due as displayed to the consumer on the ATM screen will
always comply with the payment terms required by the respective
loan servicer.
40. The invention also operates to provide the consumer with direct
and timely access to loan balance and payment information without
having to contact the loan servicer. The consumer will
automatically receive a receipt of any payment transaction
executed, with relevant loan balance and payment information
printed thereon, and will also be able to request this information
through the ATM at times other than when making a payment.
BRIEF DESCRIPTION OF THE DRAWINGS
41. FIG. 1 shows a block diagram of a conventional ATM system
illustrating the transactions that occur during a typical ATM
transaction.
42. FIG. 2 shows a block diagram of the present invention
illustrating the transactions that occur during the payment of a
debt obligation in accordance with the present invention.
43. FIG. 3 is a flowchart illustrating the process of a debt
obligation payment using a system of the present invention as shown
in FIG. 2.
44. FIG. 4 is a flowchart of a process used by a loan servicer to
retrieve and process information for forwarding to a 3rd party loan
payment facilitator.
45. FIG. 5 is a flowchart of a process used by a third party loan
payment facilitator to extract and process debt obligation data
from one or more loan servicers in accordance with the present
invention.
46. FIG. 6 is a flowchart of a process used by a third party loan
payment facilitator to receive and process transaction information
from an ATM transactions processor in accordance with the present
invention.
47. FIG. 7 is a flowchart of a process used by a loan servicer to
receive and process transaction data from a 3rd party loan payment
facilitator.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
48. Referring now to FIG. 2, a block diagram illustrating the
overall organizational structure of a system for automated debt
payment in accordance with the present invention is shown generally
at 10. As seen in FIG. 2, the debt payment system of the present
invention includes ATM network 8 shown in more detail in FIG. 1,
together with a loan or debt servicer's bank 22, a loan or debt
servicer 24, and a 3rd party loan payment facilitator 26. In the
present application, the term "financial institution" is used
broadly to refer to either depositories or debt servicers,
including either loan servicer's bank 22, loan servicer 24, or a
combination of these two in a single entity.
49. As described above in connection with FIG. 1, ATM network 8
includes an ATM transaction processor 14, an ATM banking
institution 16, a consumer banking institution 18, and an ACH
network 20. In order to clarify the operation of the present
invention, ATM network access device 15, communications path 17,
back-up data and transactions log 13, and communications path 27
are omitted from ATM network 8 as shown in FIG. 2, but these
components would typically remain present to handle typical known
ATM transactions as described in connection with FIG. 1 above.
50. 3rd party loan payment facilitator 26 is connected with ATM
transaction processor 14 of the ATM network 8 through
communications path 31. Furthermore, the loan or debt servicer's
bank may be connected with ATM transaction processor 14 of the ATM
network 8 through communications path 32. While this connection is
not required, it can be used to provide communication of
transaction information and confirmation records between
transaction processor 14 and the loan servicer's bank 22.
51. The loan or debt servicer's bank 22 is connected with ACH
network 20 through communications means 33 and is connected to the
loan or debt servicer 24 through a suitable communications medium
35, which be any of an electronic, telephonic, or postal
interconnection. 3rd party loan payment facilitator 26 and loan or
debt servicer 24 are also connected with each other through
communications path 37, which is not necessarily a permanent
connection, but rather may be periodically established "on-demand"
when data communication is required.
52. In accordance with the present invention, 3rd party loan
payment facilitator 26 and the loan servicer 24 cooperate with each
other and with the ATM network 8 to allow a consumer to complete a
loan payment using the ATM network 8, and more particularly, using
an ATM network access device 15 (FIG. 1) at the ATM banking
institution 16. 3rd party loan payment facilitator 26 makes loan
account information available to the ATM network 8 through
communications path 31. This information may be uploaded to
transaction processor 14 in a bulk transfer on a periodic basis,
such as once a day, or may be supplied to transaction processor 14
on a transaction-by-transaction basis. In a case where a bulk
transfer is used, communications path 31 may be an intermittent
link, such as a dial-up modem connection, that is periodically
established when it is necessary to transfer data to transaction
processor 14. Conversely, when a transaction-by-transaction
transfer is used, communications path 31 must be substantially
permanent since transaction processor 14 will request such
information any time a consumer initiates an ATM transaction.
53. Communications path 31 is also used to transfer information
from transaction processor 14 to 3rd party loan payment facilitator
26. For example, 3rd party loan payment facilitator 26 will receive
information from transaction processor 14 indicating that a user
has completed a payment on an outstanding debt obligation. In this
manner, the records maintained by the 3rd party loan payment
facilitator can be updated, if desired, to reflect that such
payment has been made. As described in more detail below, this
information is also communicated to loan servicer 24 to assist,
among other things, with updating loan records and investor
reporting records, and with the settlement verification process
occurring between loan servicer 24 and the loan servicer's bank
22.
54. 3rd party loan payment facilitator 26 and loan servicer 24 are
connected and communicate through a communications path 37, which
may be any suitable data communications path, such as a dial-up
modem connection, leased line, or TCP/IP connection. 3rd party loan
payment facilitator 26 receives loan account information from loan
servicer 24. While a single communications path 37 and a single
loan servicer 24 are shown in FIG. 2 for clarity, in practice the
present invention will likely include any number of loan servicers
and associated communications paths 37 connected therewith. In such
case, 3rd party loan payment facilitator 26 will collect loan
account information from each of the plurality of loan servicers 24
through the communications paths 37 and will process this
information as discussed in detail below to generate suitable loan
account information for transfer to transaction processor 14
through communications path 31.
55. As mentioned above, loan servicer 24 also receives payment
transaction records from the 3rd party loan payment facilitator 26
through communications path 37. In this manner, loan servicer 24 is
notified that a payment has been made and that it can expect to
receive a verification of such payment from the loan servicer's
bank 22 in due course.
56. In a manner similar to the ATM banking institution shown in
FIG. 1, the loan servicer's bank 22 is connected with the ACH
network 20 of the ATM network 8 and receives electronic loan
payment credits from the ACH network 20 through communications
means 33. In accordance with one important feature of the present
invention, ACH network 20 may initiate multiple electronic credits
33a, 33b, 33c using communication means 33. That is, where it is
desirable that a loan payment be segregated and deposited to
multiple accounts, ACH network 20 will initiate multiple funds
transfers 33a, 33b, 33c, etc., to each of the respective accounts
in an appropriate amount. In this manner, the burden on loan
servicer 24 to segregate funds received from a consumer is
eliminated while segregation required by investors is
maintained.
57. The process followed by a consumer to make a loan payment will
now be described in more detail in connection with FIG. 3. The loan
payment process shown in FIG. 3 illustrates the transactions
performed by the ATM network 8 (FIGS. 1 and 2) in response to a
user request that a loan payment be made, and funds transferred
from the consumer's banking institution 18 to a loan servicer's
bank 22. FIG. 3 does not illustrate the process by which
information about a consumer's loans are retrieved from the loan
servicer 24 and made available to the ATM network 8 to facilitate
payment of these obligations. These features of the present
invention are discussed in more detail below in connection with
FIGS. 4-7.
58. Referring now to FIGS. 2 and 3, the process starts in block
300. In block 302 a user initiates an ATM session by inserting his
ATM card and entering an appropriate PIN into an ATM network access
device, such as an ATM terminal. Once the user has successfully
logged into the ATM network, the user may elect to make a loan or
debt payment in block 304. The user will be prompted to identify
the loan for which he wishes to make a payment, and to indicate the
amount of payment that he wishes to make. It should be noted that
the user is not obligated to provide detailed information to
identify the loan and the payment amount, but rather the user is
provided with a series of display prompts that the user can select
to make a payment on a debt obligation. Exemplary ATM screen
displays and a flow diagram of such screens are provided as
Appendix A attached hereto, illustrating the manner in which the
present invention facilitates selection of a loan and entry of a
payment amount.
59. In accordance with one feature of the present invention, the
ATM network, and more particularly the ATM network access device,
may automatically prompt the user to make a loan payment when one
is due within a certain predetermined time frame. That is, if a
user logs into an ATM terminal within a certain time period prior
to a payment due date for a debt obligation, the ATM system may
display a suitable reminder to the user that a loan payment is due,
and offer the opportunity for that user to initiate a payment at
that time. Therefore, it is to be understood that the following
discussion of the loan payment process could be initiated by a user
either himself, or in response to a prompt from the ATM
network.
60. Also, in accordance with the present invention, a user is
prohibited from making a payment for an amount less than that which
is due on the debt obligation. That is, the user is prohibited from
remitting a payment amount that is lower than that which is
periodically due on the debt obligation, thus preventing confusion
and misunderstanding that result when a consumer errantly pays some
amount less than the full amount that is due under the obligation.
The user may, however, elect to pay an amount greater than that
which is due, with any overage applied to reduce the outstanding
principal balance of the obligation.
61. Once the user has indicated the type of loan and the dollar
amount of the payment to be made in block 304, the appropriate
transaction information is sent from the ATM banking institution 16
to a suitable transaction processor 14 in block 306. In block 308,
the transaction processor receives this information, identifies the
appropriate consumer banking institution 18 associated with the
user, and forwards appropriate transaction information to the
consumer's banking institution 18.
62. The consumer's banking institution 18 uses this information to
verify that sufficient funds are available in the user's account to
satisfy the requested transaction in block 310. The consumer's
banking institution 18 then generates an appropriate authorization
message and returns it to transaction processor 14. In the event
that sufficient funds are present for the transaction, the
authorization message will indicate that the transaction should
proceed. In the event that insufficient funds are present for the
transaction, the authorization message will so indicate and the
transaction will be halted with an appropriate message being
displayed to the user at the ATM banking institution 16. In either
event, transaction processor 14 forwards the authorization message
back to the ATM banking institution 16 as shown in block 312.
63. In block 314, assuming that sufficient funds exist for the
transaction to proceed, transaction processor 14 generates
appropriate debit and credit instructions and forwards these
instructions to the ACH network 20 in order to initiate the actual
transfer of funds between the consumer's banking institution 18 and
the loan servicer's bank 22. Specifically, the transaction
processor 14 will request the ACH network to debit the consumer's
account at the consumer's banking institution 18 by an amount equal
to the debt payment amount indicated by the consumer, and will
request that a credit be made to the appropriate loan servicer's
account at the loan servicer's bank 22. One important feature of
the present invention lies in the ability of the present invention
to request that multiple credits be made to automatically segregate
funds at the loan servicer's bank 22. By so doing, the effort of
administration required by the loan servicer 24 is greatly reduced
and substantial costs savings can be realized. In block 316, the
ACH network will receive these fund transfer requests from the
transaction processor and will generate and forward suitable debit
and credit transaction requests to the appropriate banking
institutions.
64. In block 318, the transaction processor 14 will generate
suitable confirmations that the transaction has been completed and
will forward confirmation records of such completion to the
consumer's banking institution 18, to the ATM banking institution
16, and to the 3rd party loan payment facilitator 26. Transaction
processor 14 can also forward a confirmation record of such
completion to the loan servicer's bank 22 using optional
communications path 32 as desired. With confirmation that the
transaction has been successfully completed, a notice to that
effect is displayed to the consumer and the process ends in block
320.
65. The above debt payment transaction process described in
connection with FIG. 3 assumes that debt information is available
to the ATM network 8 for use in processing a consumer's request for
a debt payment transaction. However, the currently known ATM system
does not include such information and it is an object of the
present invention to provide a system and method for making this
information available to the ATM network 8 to facilitate the
payment of debt obligations in the manner described above in
connection with FIG. 3.
66. In accordance with the present invention, means are provided
with both the 3rd party loan payment facilitator 26 and the loan
servicer 24 to obtain the necessary information for use by the ATM
network 8 in processing a consumer's debt payment request. In the
most preferred embodiment, these means include software operating
on a suitable computing device at both the 3rd party loan payment
facilitator's 26 location and at the loan servicer's 24 location.
This software operates to provide communication between the 3rd
party loan payment facilitator 26 and the loan servicer 24, as well
as appropriate communication with ATM network 8 using
communications paths 31 and 37 shown in FIG. 2.
67. The software residing at the loan servicer's 24 location
interfaces with communication path 37 to transfer information
between loan servicer 24 and 3rd party loan payment facilitator 26.
During installation of this software, various information is input
by the loan servicer 24 to facilitate this communication, including
identification of the loan servicer's 24 type of modem and dial-in
number for modem communications, operating environment, database
design, systems platform, and contact information at the loan
servicer's 24 place of business, etc.
68. As illustrated in FIG. 4 in block 400, the software scans the
database of loan servicer 24 and in block 402 identifies customers
electing to use the services of 3rd party loan payment facilitator
26. For example, the database of loan servicer 24 could include a
field having information identifying that customer as one electing
to use the services of the 3rd party loan payment facilitator 26.
When a customer is located, the software extracts the necessary
data elements from the record and preferably stores this
information in a temporary file in block 404. The scanning process
then continues in this manner until it has completed scanning the
entire database of loan servicer 24.
69. Exemplary data extracted from the loan servicer's 24 database
is shown in Table I below. Of course, more or less information may
be extracted and forwarded to 3rd party loan payment facilitator 26
as desired.
1TABLE I ACCOUNT DATA RECEIVED FROM LOAN SERVICERS Data Element
Description Servicer Identification Number Means by which 3rd party
loan payment facilitator uniquely identifies its customers Site
Identification Number Means by which 3rd party loan payment
facilitator identifies sub-components of its customers Servicer
Name Servicer Name Servicer Mailing Street Address Servicer Mailing
Street Address Servicer Mailing City Servicer Mailing City Servicer
Mailing State Servicer Mailing State Servicer Mailing Zip Code
Servicer Mailing Zip Code Servicer Mailing Zip + 4 Servicer Mailing
Zip + 4 Servicer Contact Servicer Contact Servicer Contact Phone
Servicer Contact Phone Servicer Contact Fax Servicer Contact Fax
Site Mailing Street Address Site Mailing Street Address Site
Mailing State Site Mailing State Site Mailing Zip Code Site Mailing
Zip Code Site Mailing Zip + 4 Site Mailing Zip + 4 Site Contact
Site Contact Site Contact Phone Site Contact Phone Site Contact Fax
Site Contact Fax Borrower First Name Borrower First Name Borrower
Middle Initial Borrower Middle Initial Borrower Last Name Borrower
Last Name Borrower Social Security Number Borrower Social Security
Number Co-borrower First Name Co-borrower First Name Co-borrower
Middle Initial Co-borrower Middle Initial Co-borrower Last Name
Co-borrower Last Name Co-borrower Social Security Co-borrower
Social Security Number Number Borrower Mailing Street Address
Borrower Mailing Street Address Borrower Mailing City Borrower
Mailing City Borrower Mailing State Borrower Mailing State Borrower
Mailing Zip Code Borrower Mailing Zip Code Borrower Mailing Zip + 4
Borrower Mailing Zip + 4 Property Mailing Address Location of the
property securing the mortgage loan Property Mailing City Property
Mailing City Property Mailing State Property Mailing State Property
Mailing Zip Code Property Mailing Zip Code Property Mailing Zip + 4
Property Mailing Zip + 4 Loan Number Servicer's unique loan
identifier Original Loan Balance Original dollar amount of the loan
Outstanding Unpaid Principal Current amount owed by the Balance
borrower on the loan Outstanding Escrow Reserve Current amount paid
by the borrower Balance and held in escrow reserve by the servicer
for the future payment of real estate taxes, insurance, etc.
Principal Paid YTD YTD principal amount paid by the borrower
Interest Paid YTD YTD interest amount paid by the borrower Tax Paid
YTD YTD local property taxes paid by the borrower and collected and
managed by the servicer, if any Insurance Paid YTD YTD home owners
insurance paid by the borrower and collected and managed by the
servicer, if any MI Premium Paid YTD YTD mortgage insurance premium
paid by the borrower and collected and managed by the servicer, if
any Current Loan Interest Rate Current Loan Interest Rate Loan Type
Indicator Identifies Loan as Fixed Rate or Adjustable Rate Current
Principal Owed Amount of payment due that will be applied to reduce
the principal amount of the loan Current Interest Owed Amount of
payment due that will be applied to the interest of the loan
Current Escrow Tax Owed Amount of payment that will be applied to
local property taxes managed by servicer, if any Current Escrow
Insurance Owed Amount of payment due that will be applied to pay
premium on home owners insurance managed by servicer, if any
Current MI Premium Owed Amount of payment due that will be used to
pay premium for primary mortgage insurance, if any Current Payment
Owed Total payment amount due to satisfy mortgage terms Current
Servicing Fee (Percent) Percentage Amount of the Outstanding Unpaid
Principal Amount withheld by the servicer from the Current Interest
Owed as compensation for performing the loan servicing function
Current Servicing Fee (Dollars) Dollar Amount of the Current
Interest Owed withheld by the servicer as compensation for
performing the loan servicing function Date Current Payment Due
Date by which payment must be received to satisfy mortgage terms
Late Fee Due Date on which late fees/penalties will be added to the
Current Payment Owed if payment has not been received by the
servicer Date of Last Paid Installment Date last payment was made
which satisfied mortgage terms Penalties/Fees Owed Penalties or
fees owed, in addition to the Current Payment Owed P&I Routing
Number ACH routing number (identifier) of bank at which principal
and interest portion of payment is deposited P&I Account Number
Account number into which P&I portion of payment is deposited
T&I Routing Number ACH routing number (identifier) of bank at
which property tax and homeowners insurance premium portion of
payment is deposited T&I Account Number Account number into
which T&I portion of payment is deposited MIP Routing Number
ACH routing number (identifier) of bank at which mortgage insurance
premium portion of payment is deposited MIP Account Number Account
number into which MI payment is deposited Fee Routing Number ACH
routing number (identifier) of bank at which fees and penalties
portion of payment (including servicing fee) is deposited Fee
Account Number Account number into which fees and penalties portion
of payment (including servicing fee) is deposited Investor
Identification Secondary Market Owner of mortgage (if any) Investor
Loan Number Investor's unique loan identifier Investor Remittance
Type Investor loan classification which identifies how the investor
is to be paid the current principal and interest owed on the
loan
70. In accordance with the most preferred embodiment of the present
invention, the extracting software is executed at least once each
day between 4 and 6 pm U.S. Eastern Standard Time. The software
should automatically initiate and complete the database scanning
process based on time parameters provided by loan servicer 24.
Where automatic execution is not possible, the software prompts a
user as a reminder that the database scan needs to be executed and
informs the user as to how long it has been since the last update
was processed.
71. Once the appropriate data elements are extracted from loan
servicer's 24 database, the software establishes in block 406 a
communications link between the loan servicer 24 and the 3rd party
loan payment facilitator 26 and transmits this data to the 3rd
party loan payment facilitator 26 in block 408. While in this
embodiment communications are initiated by the loan servicer 24, it
will be apparent to those of skill in the art that it is possible,
and in fact may be preferable, for 3rd party loan payment
facilitator 26 to initiate data communications with the loan
servicer 24. Any suitable communications path can be used,
including a dial-up modem connection, leased line, TCP/IP or world
wide computer network interconnection. In block 410, the software
verifies that the data has been accurately transmitted and retries
the transmission if a failure occurs. Upon successful transmission,
the process ends in block 412.
72. As noted above, the system and method of the present invention
will likely interact with any number of loan servicers, or with
geographically dispersed operations centers of large loan
servicers. Therefore, the above data extraction process is
performed for any and all loan servicers or operations centers
having information that must be communicated to the 3rd party loan
payment facilitator 26.
73. The data from each of the loan servicers 24 is received by 3rd
party loan payment facilitator 26 using appropriate communications
and processing software, which is illustrated in flow chart form in
FIG. 5. This software is capable of receiving data from a plurality
of loan servicers or operations centers. A log of records received
from each loan servicer is also generated and stored with the 3rd
party loan payment facilitator 26. As seen in FIG. 5, the process
begins with the initiation of a daily download in block 500. The
software retrieves from the loan servicer 24 the required data
elements extracted from the loan servicer's records (FIG. 4, block
404) in block 502. If the transmission fails in block 504, control
returns to block 500 and the download session is repeated. Upon a
successful transmission, the extracted data is saved in block 506
and converted to an appropriate format in block 508 for storage in
a database at the third party loan payment facilitator's 26
location. The data may also be saved to a back-up log for
subsequent recovery or verification purposes. The data formatting
used by each of the loan servicers 24 may or may not correspond to
each other and to the format used by 3rd party loan payment
facilitator 26. Therefore, when an incompatible data format is
used, the 3rd party loan payment facilitator 26 first converts the
information into a format compatible with the third party loan
payment facilitator's 26 database system.
74. Once the software receives, converts and stores data from all
loan servicers 24 or from all operations centers of geographically
dispersed loan servicers, the data is converted and aggregated into
a suitable format for communication to ATM network 8 (FIG. 2) as
shown in block 510. In the most preferred embodiment of the present
invention, the data is converted to an ANSI X.9, ANSI X.12, or ISO
8583 format, which are commonly used for ATM network data. While
the above process is the preferred method in accordance with the
present invention of receiving and processing the debt related
information, it is to be understood by those of skill in the art
that the data retrieval, formatting, and storage can be modified as
desired. The primary objective achieved by the present invention is
the retrieval of information of one or more loan servicers and the
conversion of this information into a form that can be readily
processed by an ATM transaction network to permit a user of the ATM
network to view this data or to initiate a transaction in response
to this data.
75. This data is then communicated in block 512 to ATM network 8
through a communication path 31, for example. In accordance with
the present invention, the totality of this data can be downloaded
to transaction processor 14 so that it is readily available when a
consumer initiates a debt payment transaction using ATM network 8,
or it may be stored in a database at the 3rd party loan payment
facilitator's 26 location and single data records can be
transferred to the ATM network 8 as required in response to a
request from the transaction processor 14. This data is then used
by the transaction processor 14 in the fashion described above in
connection with FIGS. 2 and 3 to process debt payment requests
initiated by a consumer. If the data is found to be successfully
transmitted to the transaction processor 14 in block 514, the
process terminates in block 516. If a transmission error is
determined in block 514, then the process returns to block 512 and
the data is retransmitted to the ATM processors until a successful
transmission is achieved.
76. The 3rd party loan payment facilitator 26 software further
operates to receive a record of each debt payment transaction
processed by the transaction processor 14, either on a
transaction-by-transaction basis or in bulk form at the end of each
business day. A flowchart of this portion of the software is shown
in FIG. 6. The process begins in block 600 with the initiation of a
download process. The software receives information for all
successfully completed transactions in block 602. Table II includes
an example of the data that is received in accordance with the
present invention from transaction processor 14.
2TABLE II TRANSACTION DATA RECEIVED FROM PROCESSOR Data Element
Description Date Payment Received Date Payment Received Total
Amount of Payment Total Amount of Payment Servicer Identification
Number Means by which 3rd party loan payment facilitator uniquely
identifies its customers Site Identification Number Means by which
3rd party loan payment facilitator identifies sub- components of
its customers Loan Identifier Servicer's unique loan
identifier/Loan Number associated with payment P&I Routing
Number ACH routing number to which P&I portion of payment was
sent P&I Account Number Account number to which P&I portion
of payment was sent P&I Deposit Amount Amount of payment
deposited to P&I account T&I Routing Number ACH routing
number to which T&I portion of payment was sent T&I Account
Number Account number to which T&I portion of payment was sent
T&I Deposit Amount Amount of payment deposited to T&I
Account MIP Routing Number ACH routing number to which MIP portion
of payment was sent MIP Account Number Account number to which MIP
portion of payment was sent MIP Deposit Amount Amount of payment
deposited to MIP Account Fees and Penalties Routing ACH routing
number to which fees Number and penalties portion of payment was
sent Fees and Penalties Account Account number to which fees and
Number penalties portion of payment was sent Fees and Penalties
Deposit Amount Amount of payment deposited to fees and penalties
account
77. If the transmission fails in block 604, the process returns to
block 600, where the download procedure is retried. Upon successful
transmission of the data, the process proceeds to block 606, where
the downloaded data is saved. In block 608, the transaction records
are disaggregated by loan servicer. From this information, detailed
records of the amount of funds transferred for each outstanding
obligation are received and this information can be compared with
the records received from the loan servicer 24 and appropriate
entries made to indicate that certain debt obligations have been
paid.
78. Next, in block 610, the 3rd party loan payment facilitator 26
software formats this information into a suitable form and
forwards, in block 612, suitable information to the loan servicers
24 sufficient to identify the transactions completed for the given
reporting period. In the event that no transactions have been
processed for a particular loan servicer 24, this information is
also forwarded to the loan servicer 24 to confirm that no
transactions in fact occurred. If the transmission is found to be
successful in block 614, then the process ends in block 616.
Otherwise, control returns to block 612, where the transmission to
the loan servicers 24 is retried.
79. Referring to FIG. 7, upon receipt of this information in block
700, loan servicer 24 will save the information in block 702 and
update its customer records in block 704 to reflect the payments
processed by the ATM network 8, and will further use this
information to aid in the settlement verification process and
reconciliation of its bank accounts with loan servicer's bank 22.
Furthermore, with this timely data, the loan servicers 24 can
generate any necessary reports of transactions and current loan
balances for forwarding to investors or secondary market agencies
as required. Loan servicer 24 will then prepare the data for
download the following day to the 3rd party loan payment
facilitator in block 706.
80. In accordance with the present invention, appropriate
modifications are made to the ATM network 8, and specifically to
the ATM network access device, or ATM terminal, 15 shown in FIG. 1.
Exemplary screen displays that may be used in accordance with the
present invention, and a flow diagram of such screens are provided
as Appendix A attached hereto. A consumer electing to make a loan
or debt payment or inquiry through an ATM selects an appropriate
option from the ATM functional menu, after first having passed
through the standard access requirements (i.e., inserting a
magnetic-stripe ATM/debit card and entering an associated PIN).
Once access has been gained, the consumer selects a payment option
from the ATM functional menu, then selects the type of payment
(i.e., mortgage, auto, home equity, credit card, other), elects to
either make a payment or receive loan balance information only, and
completes the transaction by responding to a series of prompts
displayed on the ATM screens. If the user elects to receive loan
balance information only, this information is retrieved as
described above and provided to the user on a display portion of
the ATM network access device or alternatively provided to the user
in the form of a written receipt printed by the ATM network access
device.
81. If payment is the option selected, the amount of the payment
due and the name of the payee is displayed to the consumer for
verification. The consumer is further given the option of paying
additional funds to be applied to the loan principal balance, by
keying the total dollar amount to be paid through the numeric key
pad incorporated into all ATMs. In the most preferred embodiment,
the invention will not allow the consumer to remit a payment amount
less than the minimum payment due as displayed on-screen to the
consumer. Once the consumer is satisfied that the amount to be
remitted for loan payment is correct, the consumer elects to send
the payment, again responding to a system prompt. If adequate funds
are available in the consumer's transaction account to cover the
amount of the payment, the consumer is given a receipt evidencing
the transaction, and is returned to the ATM's main display screen
for additional transactions. If sufficient funds are not available
for the payment amount entered, the consumer is advised of the
condition, the payment transaction is terminated, and the consumer
is returned to the ATM's main display screen for additional
transactions.
82. Although the invention has been described with reference to
specific embodiments, various modifications of the disclosed
embodiments as well as other embodiments of the invention will
become apparent to persons skilled in the art on reference to the
detailed description of the invention contained herein.
Accordingly, the claims of the present application should not be
limited to the specific preferred embodiments described.
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