U.S. patent application number 12/763660 was filed with the patent office on 2010-08-12 for system and mehtod for providing a credit account for debt recovery.
Invention is credited to Mark R. Pendleton, Krishnakumar Srinivasan, Brian F. Stone.
Application Number | 20100205089 12/763660 |
Document ID | / |
Family ID | 34552553 |
Filed Date | 2010-08-12 |
United States Patent
Application |
20100205089 |
Kind Code |
A1 |
Srinivasan; Krishnakumar ;
et al. |
August 12, 2010 |
System and Mehtod for Providing a Credit Account for Debt
Recovery
Abstract
The invention includes systems and methods for providing a
credit account for debt recovery. A recovery credit account is
provided for a customer with an existing charged-off debt. Some of
the customer's charged-off debt may be forgiven as part of a
settlement when the customer enrolls in the recovery credit
account, but the opening balance of the recovery credit account
will represent the entire debt obligation of the customer going
forward. The recovery credit account includes a credit limit that
is lower than the opening balance. Reducing the account balance to
less than the credit limit triggers open-to-buy status, issuance of
a credit card, and activation of over the limit fees for future
balances over the credit limit.
Inventors: |
Srinivasan; Krishnakumar;
(Vaimiki Nagar, IN) ; Stone; Brian F.; (Norcross,
GA) ; Pendleton; Mark R.; (Atlanta, GA) |
Correspondence
Address: |
PHILIP H. BURRUS, IV
460 Grant Street
Atlanta
GA
30312
US
|
Family ID: |
34552553 |
Appl. No.: |
12/763660 |
Filed: |
April 20, 2010 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10706470 |
Nov 12, 2003 |
7720757 |
|
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12763660 |
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Current U.S.
Class: |
705/38 |
Current CPC
Class: |
G06Q 20/10 20130101;
G06Q 40/02 20130101; G06Q 40/025 20130101 |
Class at
Publication: |
705/38 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00; G06Q 20/00 20060101 G06Q020/00 |
Claims
1.-24. (canceled)
25. One or more computers operating with a network and comprising
one or more memories for storing program instructions and one or
more processors, responsive to the program instructions, configured
to: create a single recovery credit account for a customer with a
charged-off credit account balance, the single recovery credit
account not having a debt balance record; set an opening credit
balance of the recovery credit account to a value equal to at least
a portion of the charged-off credit account balance and wherein the
opening credit balance represents the entire debt obligation of the
customer corresponding to the charged-off credit balance; receive a
plurality of required payments; adjust the opening credit balance
based on the received payments; in response to receiving the
received payments, initiating an issuance of a card to the
customer.
26. The one or more computers of claim 25, wherein the program
instructions are further configured to: compare the received
payments to the opening credit balance; and where the received
payments exceed the opening credit balance, marking the single
recovery account with an open-to-buy status.
27. The one or more computers of claim 25, wherein the program
instructions are further configured to: compare the received
payments to the opening credit balance; and where the received
payments exceed the opening credit balance by at least a
predetermined margin, marking the single recovery account with an
open-to-buy status.
28. The one or more computers of claim 25, wherein the program
instructions are further configured to: suggest a suggested payment
for the single recovery credit account to achieve an open-to-buy
status within a predetermined period to the customer.
29. The one or more computers of claim 28, wherein the suggest a
suggested payment comprises dividing an open-to-buy payment divided
by a number of billing cycles remaining in the predetermined
period.
30. The one or more computers of claim 25, wherein the program
instructions are further configured to: deliver a settlement
contingency to the customer, wherein the settlement contingency
comprises conditions that must be met for the customer to comply
with terms corresponding to the single recovery credit account.
31. The one or more computers of claim 30, wherein the terms
comprise one or more of making minimum payments for a fixed period,
achieving open-to-buy status within a fixed period, or
demonstrating progress and commitment to paying down at least a
portion of the charged-off debt.
32. The one or more computers of claim 25, wherein the program
instructions are further configured to: increase a credit limit
upon the customer establishing a regular payment history after
submitting payments exceeding the opening credit balance.
Description
BACKGROUND OF THE INVENTION
[0001] 1. Field of the Invention
[0002] The present invention relates to the field of credit account
products and, more specifically, credit account products that
provide for the recovery of charged-off debt.
[0003] 2. Description of Related Art
[0004] Non-paying customers are a reality that credit-issuing
businesses cannot totally avoid. When a customer stops paying on a
credit account with a positive balance, the creditor must decide
how to handle the outstanding debt and attempt to recover at least
some of the loss that the account balance represents. Initially, a
variety of notices are usually used to encourage the customer to
begin paying on the account again. However, after a substantial
period of non-payment, most credit-issuers will classify the
account as charged-off--representing that they have recognized the
unlikelihood of collecting on the full debt obligation.
[0005] There are a variety of ways to deal with charged-off
accounts. Some common approaches include internal or external
departments that negotiate settlement or refinancing for the
repayment of some or all of the debt, usually on different terms
than those originally associated with the account. Another approach
is the use of outside collection agencies that purchase the debt at
some reduced rate or charge a commission for recovered monies.
Unfortunately, many common tactics have limited success rates and
frequently damage the customer relationship.
[0006] One approach to the recovery of charged-off debts that has
the benefit of both increased collections and maintaining the
customer relationship is the use of debt recovery credit accounts,
such as reaffirmation credit cards. Essentially, debt recovery
credit accounts extend a new credit account to the customer
conditioned on repayment of some, or all, of the charged-off debt
obligation. In the case of reaffirmation credit cards, the customer
is reaffirming their debt obligation to the credit issuer in return
for a new line of credit.
[0007] Prior methods of administering reaffirmation credit cards
involve a two record model. The first record is the credit account
itself, with an associated balance, credit limit, interest rate,
and other features. The second record is a pre-existing debt
record. The pre-existing debt record is a holding account that is
reduced by customer payments and may or may not have an interest
rate or other features. As payments to the reaffirmation credit
card are received, they are split between the two accounts
according to some formula (50/50, 25/75, or more complicated fixed
or percentage formulas that give payment preferences for new
charges or pre-existing debt). Interest rates, service charges,
minimum payment formulas, and other aspects are usually different
for the two records. For example, the credit account may be
administered like any standard credit account, while the
pre-existing debt record is an interest free account as long as
regular payments continue to be made.
[0008] In one version of a reaffirmation credit card, the
charged-off debt is actually split between the credit account and
the pre-existing debt record. For example, if the charged-off debt
was $1000, the opening balance of the credit account would be $500
and the opening balance of the pre-existing debt record would be
$500. The credit limit for the credit account would be set to the
starting balance ($500), making the available balance $0.
[0009] In an alternate version of the reaffirmation credit card,
the entire charged-off debt is placed in the pre-exiting debt
record--for example, providing an opening credit account balance of
$0 and an opening pre-existing debt balance of $1000. The credit
limit of the credit account is then set to a low value, such as
$50, to provide an initial available credit of $50. Increases of
the low starting credit limit can then be based upon establishment
of a regular payment history or other criteria moving forward.
[0010] Either configuration of the reaffirmation credit card
requires the administration of two account records. This increases
administrative overhead, complicates formulas and transactions, and
makes the account more difficult for the customer to understand and
effectively administer. In addition, both configurations provide a
credit card to the customer at enrollment and make credit available
immediately or after the first payment, no matter how small.
[0011] Accordingly, there is a need for a debt recovery credit
account that is easier to administer and use than the two record
approach of prior reaffirmation credit cards. Improved incentives
for payment and limits on the credit-issuer's initial exposure to
non-payment or new credit liabilities would also be
advantageous.
SUMMARY OF THE INVENTION
[0012] The invention includes systems and methods for providing a
credit account for debt recovery. A recovery credit account is
provided for a customer with an existing charged-off debt. Some of
the customer's charged-off debt may be forgiven as part of a
settlement when the customer enrolls in the recovery credit
account, but the opening balance of the recovery credit account
will represent the entire debt obligation of the customer going
forward (assuming any contingencies in the settlement are met).
[0013] In some embodiments of the invention, the recovery credit
account includes a credit limit that is lower than the opening
balance. The recovery credit account is not open-to-buy until the
recovery credit account balance is paid down to a level less than
the credit limit. In addition, a credit card corresponding to the
recovery credit account is not issued to the customer until the
recovery credit account is open-to-buy. Bills issued to the
customer include an indication of the payment amount required to
reduce the recovery credit account balance to less than the credit
limit and achieve open-to-buy status. Bills also include a
suggested payment for achieving open-to-buy status within a
predetermined period from the opening of the account. If the
recovery credit account includes an over the limit fee, the fee
will not be assessed until the account balance has previously been
reduced below the credit limit and achieved open-to-buy status at
least once (and conditions for the over the limit fee are otherwise
met). Other credit card features, such as minimum payments,
automatic payments, etc., are compatible with most embodiments of
the invention.
BRIEF DESCRIPTION OF THE DRAWINGS
[0014] FIG. 1 is a block diagram of an example credit account with
debt recovery features.
[0015] FIG. 2 is a diagram of example transactions illustrating the
enrollment, management, and use of a credit account with debt
recovery features.
[0016] FIG. 3 is a flow diagram of an example method of enrolling
customers in a credit account with debt recovery features.
[0017] FIG. 4 is a flow diagram of an example method of managing a
credit account with debt recovery features.
[0018] FIG. 5 is a block diagram of an example system for providing
a credit account with debt recovery features.
DETAILED DESCRIPTION
[0019] FIG. 1 shows a credit account product 100 for providing debt
recovery. A credit issuer that has or acquires a charged-off debt
110 offers the credit account product 100 as a means of realizing
at least some portion of the charged-off debt 110. The credit
account product 100 is offered to the customer with the charged-off
debt 110. The offer may be made as part of a settlement negotiation
intended to get the customer to reaffirm at least some portion of
the debt. The portion that is not reaffirmed is written-off as a
settlement 120. The settlement 120 may be an upfront settlement,
may be based upon specified settlement contingencies (such as
making future payments), or may be a combination of upfront and
contingent settlement. The process of settlement and the
possibility of reducing the debt is an incentive for reaffirmation
by the customer. Note that the charged-off debt 110 need not
represent a single unpaid credit account to a single credit issuer
or account holder. For example, the charged-off debt 110 may
include debt consolidation from multiple accounts or debt holders
that have been aggregated for collection, settlement, or
reaffirmation purposes.
[0020] The portion of the charged-off debt 110 that is not settled
is moved into a new debt recovery account 130. The debt recovery
account 130 is a credit account administered by the credit issuing
business. In one embodiment, the debt recovery account 130 is a
credit card account and is generally administered in accordance
with known practices for administering credit card accounts, with
the additional features noted below. A credit card 132 is
associated with the debt recovery account 130 and issued to the
customer to enable access to the debt recovery account 130. While
the example embodiment is a credit card account and associated
magnetic strip card or smart card token, other forms of credit
account may also embody the invention. For example, some credit
accounts may be entirely electronic and use a PIN, encryption key,
or similar token for access to available credit. Still others may
use wands, embedded tokens (e.g., in handheld computers, mobile
telephones, watches, wearable computers, etc.), or other credit
tokens that enable account access. The debt recovery account 130
includes an account balance 140, a credit limit 142, and an
available credit balance 144. The opening account balance is equal
to the charged-off debt 110 minus any settlement 120. The opening
credit limit is set by the credit issuing business. The available
credit balance 144 is equal to the credit limit 142 minus the
account balance 140. If the account balance 140 is greater than the
credit limit 142, then the available credit balance is $0.
[0021] In one embodiment of the credit account product 100, the
opening credit limit is set such that it is less than the opening
account balance. Establishing a credit limit 142 less than the
account balance 140 means that when the debt recovery account 130
is opened it is not open-to-buy. While the debt recovery account
130 is not open-to-buy, the available credit balance 144 is $0 and
the customer may not charge against the debt recovery account 130.
This arrangement lowers the risk to the credit issuing business and
requires that customer make one or more good faith payments to
lower the account balance 140 until it is below the credit limit
142 to be able to charge against the account. The debt recovery
account 130 includes an open-to-buy status 150 to track whether or
not the open-to-buy conditions have been met. The open-to-buy
conditions may simply be that the account balance 140 is reduced
below the credit limit 142 and the available credit balance 144 is
a positive amount. However, in alternate embodiments, the
conditions may require that the account balance 140 be reduced
below the credit limit 142 by a predetermined margin or that other
payment history or assurance provisions are met before open-to-buy
status is attained.
[0022] The credit issuing business administering the debt recovery
account 130 may choose not to issue the credit card 132 for
accessing the debt recovery account 130 until open-to-buy status is
achieved. In order to track whether or not the credit card 132 has
been issued, the debt recovery account 130 includes a card issued
status 152. Not issuing the credit card 132 until open-to-buy
status is achieved provides the customer with an incentive to pay
down the account balance 140 and provides a tangible reward for
reaching the open-to-buy milestone.
[0023] As with most conventional credit card accounts, the credit
issuing business administering the debt recovery account 130 will
issue bills to the customer to provide notice of account balance,
credit limit, available credit, payment due (or confirmation of
scheduled automatic payments), and similar information. The bills
may be issued as conventional paper or through a variety of
electronic channels, such as electronic mail, web publishing, or
push technology to a mobile device, telephone, or other
communication device. The credit issuing business may include an
open-to-buy payment 160 in the billing information. The open-to-buy
payment 160 is the amount required to reduce the account balance
140 to meet the open-to-buy conditions--for example, reducing the
account balance 140 below the credit limit 142. The open-to-buy
payment 160 provides a reminder of the importance of achieving
open-to-buy status and plays a role in motivating the customer to
make payments. The debt recovery account 130 may include a
suggested payment 162, in addition to the open-to-buy payment 160.
The suggested payment 162 provides a recommended payment to achieve
open-to-buy status within a predetermined period, such as 12 months
from the opening of the account. In one embodiment, the suggested
payment is the open-to-buy payment divided by the number of billing
cycles remaining in the predetermined period. This provides an
incremental approach to reaching open-to-buy status and may be less
daunting to the customer than the lump open-to-buy payment. Like
conventional credit accounts, the debt recovery account 130 may
include a minimum payment 164 based upon the outstanding balance
and may be required to avoid penalties or loss of open-to-buy
status. As with other credit accounts, automatic payment 166 may be
established for the debt recovery account. This may be particularly
advantageous in the context of debt recovery, as it avoids some of
the causes of non-payment, such as forgetfulness, and gets the
customer in the habit of regular payments.
[0024] The debt recovery account 130 may include a settlement
contingency 170 related to all or part of the settlement 120. The
settlement contingency 170 includes conditions that must be met for
the account for the customer to comply with the terms of the
settlement 120. Conditions may include making the minimum payments
for a fixed period, achieving open-to-buy status within a fixed
period (such as the predetermined period of the suggested payment),
or similar conditions that show progress and commitment to paying
off the reaffirmed portion of the debt.
[0025] As discussed above, the debt recovery account 130 is
administered largely like conventional credit accounts and many
existing systems and methods for administering such accounts are
adaptable to this purpose. A variety of well-known features of
credit accounts have been omitted from FIG. 1 in the interest of
brevity, such as interest rate, fees, terms, transaction history,
account information (account number, customer information, billing
information, PIN, security interest, etc.), and similar credit
account features. Such features are well-known and can be assembled
in a variety of combinations. Discussion of the myriad
possibilities is unnecessary to understanding the embodiments of
the present invention.
[0026] FIG. 2 shows an example series of transactions 200 to
demonstrate the operation of the credit account product 100 of FIG.
1. Within the example transactions 200, interest rates and fees
have been omitted for simplicity of presentation. However,
assessment of monthly interest charges and fees may impact the
monthly account balance depending on the terms of the particular
credit account. The transactions 200 start with a charged-off debt
210 of $1000 associated with a customer.
[0027] The customer enrolls 220 with the credit account product
100. Upon enrolling, the customer negotiates a 50% settlement 224
of her charged-off debt 210. $500 is written-off in the settlement
224. A debt recovery account 130 is created in the customers name
and the remaining portion of the charged-off debt 210 is moved into
debt recovery account 130. A $500 debt is transferred into the debt
recovery account 130 to create an opening account balance of $500.
The credit limit of the debt recovery account is $400, less than
the opening account balance. The initial open-to-buy status is "no"
due to the account balance exceeding the credit limit. In this
example, the open-to-buy conditions include that the account
balance must be reduced to $50 below the credit limit before the
open-to-buy status will change. Thus, the open-to-buy payment is
calculated to be $150. Note that no over-limit fee would be
assessed, in spite of the fact that the current balance is over the
credit limit.
[0028] The customer makes a $50 payment 230 to the debt recovery
account 130. For example, the payment may have been made in
response to a monthly billing cycle and suggested payment value.
The entire $50 payment is applied against the $500 account balance,
reducing it to $450. The credit limit has not changed and the
open-to-buy conditions have not been met. The open-to-buy status
does not change. The open-to-buy payment is recalculated based upon
the new account balance to be $100. Once again, no over-limit fee
would be assessed in spite of the current balance exceeding the
credit limit.
[0029] The customer makes a $100 payment 240 to the debt recovery
account 130. For example, the payment may have been made in
response to a second monthly bill and the customer deciding to make
the open-to-buy payment on the bill. The account balance is reduced
to $350 and the open-to-buy conditions are met (the account balance
is $50 less than the credit limit of $400). The open-to-buy status
is changed to "yes". The open-to-buy payment is now the minimum
payment required according to the terms of the credit account. As
long as the minimum payment is met, the credit account remains
open-to-buy. In an alternate example (not shown), the open-to-buy
payment is no longer tracked or provided on the bill at all and
does not reappear until open-to-buy status is lost, such as by
overcharging the account. Because open-to-buy status has been
achieved, a credit card is issued 242 to the customer to provide
access to the debt recovery account. In addition, over-limit
charges will apply to any future charges that carry the account
balance over the credit limit.
[0030] The customer makes a $100 charge 250 to the debt recovery
account 130. For example, the customer makes a purchase using the
credit card she recently received. The account balance is increased
to $450, which exceeds the current credit limit of $400.
Open-to-buy status reverts to "no" to prevent further abuse of the
account. A new open-to-buy payment is generated based upon the new
account balance. In addition, any over-limit charges in the terms
of the account would now apply 252.
[0031] FIGS. 3 and 4 show methods for providing the debt recovery
account 130. FIG. 3 shows a method 300 of enrolling customers in
the debt recovery account 130 and FIG. 4 shows a method 400 of
managing it. Candidate charged-off accounts are identified 310. For
example, an administrator evaluates a plurality of charged-off
accounts according to a predetermined set of criteria to determine
which are likely candidates for reaffirmation and enrollment in the
debt recovery account program. Customers associated with the
selected charged-off accounts are solicited 320 for participation
the debt recovery account program. For example, a program of direct
mail and telephone solicitations is employed to contact the
customers and present the debt recovery account program to them.
For customers that decide to enroll in the program, a new recovery
account is created 330. For example, the customer's personal
information is associated with a new account number or the new
account is associated with an existing customer profile and suite
of accounts. The opening balance of the debt recovery account is
set 340 to the customer's charged-off debt balance. For example, if
the customer's charged-off debt balance was $1000, the opening
balance of the debt recovery account would be $1000. The credit
limit of the debt recovery account is set 350. For example, the
credit limit of the debt recovery account may be determined by a
formula based upon the opening balance, such as 50% of opening
balance ($500). The debt recovery account is activated 360 to begin
management activities. For example, the debt recovery account will
enter regular billing cycles, enable receipt of payment, and allow
the customer to establish automatic payments, make account balance
inquiries, and otherwise manage their account. Note that activation
of the account is distinct from achieving open-to-buy status, which
is conditioned on the account balance being lower than the credit
limit (or other open-to-buy conditions).
[0032] In one embodiment of the method 300, a portion of the
charged-off debt is settled during the enrollment process. A
partial settlement of the charged-off debt is negotiated 370 with
the customer. For example, the customer may be offered a 50%
settlement as an enticement to reaffirm the debt and enroll in the
program. The terms of the settlement may include future conditions
to be met by the customer with regard to some or all of the
settlement value. Any settlement contingencies are established 380
for the account. If a settlement is negotiated, the opening balance
of the debt recovery account is reduced 390 by the settlement
amount.
[0033] The method 400 provides for managing the debt recovery
account. Management of the debt recovery account typically occurs
according to a regular billing cycle (e.g. monthly). It includes
billing activities, payment receipt activities, and charge receipt
activities. The management of the debt recovery account may also
include account information management, customer service,
non-payment activities, reporting activities, and other management
activities. Systems and methods for these myriad processes are well
known for credit account management and have been omitted from this
description for clarity and brevity.
[0034] For each billing cycle, an open-to-buy payment amount is
determined 410. For example, the open-to-buy payment amount is
calculated based upon the difference between the current account
balance and the credit limit, potentially with some margin
condition for initiating open-to-buy status. A suggested payment is
determined 412. For example, the suggested payment is based upon a
recommended period from the opening of the account. The suggested
payment is calculated by dividing the open-to-buy payment by the
number of billing cycles remaining in the recommended period. A
minimum payment is determined 414. For example, the minimum payment
may be 3% of the current outstanding balance. A bill is issued 416
to the customer for the debt recovery account. For example, a paper
or electronic bill including the current balance, credit limit,
available credit (if any), open-to-buy payment, suggested payment,
and minimum payment is sent to the customer.
[0035] In response to the bill or billing cycle, a payment is
received 420 for the debt recovery account. For example, a check or
automated payment is received from the customer to reduce the
account balance. The payment is evaluated 422 to determine whether
it is more than or equal to the open-to-buy payment. If the payment
is less than the open-to-buy payment, the debt recovery account
balance is adjusted 430 to reflect the received payment and
management of the account continues into the next billing cycle.
Note that, even if the account balance is still over the credit
limit, no over-limit charges will apply until open-to-buy status is
achieved for the account at least once. However, if the payment is
more than or equal to the open-to-buy payment, several actions
occur. The open-to-buy status is changed 440 such that the credit
account may now be used for purchases. In addition, a debt recovery
account credit card (or other credit access token) is issued 442 to
the customer to facilitate access to the credit. Once the
open-to-buy status had been changed 440 and the credit card issued
442, the debt recovery account balance is adjusted 430 and
management of the account continues into the next billing
cycle.
[0036] Once the debt recovery account is open to buy, new charges
against the account will be received 450. For example, the customer
may use his newly received credit card to make a purchase through
the appropriate credit card network and associated vendor. The
charge is evaluated 452 to determine whether or not the new balance
of the debt recovery account will be greater than the credit limit.
If not, the balance is adjusted 430 based upon the charge and
management of the account continues into the next billing cycle (or
receipt of additional charges). If so, the open-to-buy status is
changed 460 to prevent additional charges against the account.
Over-the-limit charges are now applied 462, because the account
balance had been below the credit limit and open-to-buy status had
previously been achieved. Management of the account continues into
the next billing cycle and may involve additional consequences
coming from exceeding the account credit limit, depending on the
terms of the account.
[0037] FIG. 5 shows a computer system 500 for administering debt
recovery accounts. The computer system 500 includes a computing
platform 510, a system interface module 520, an applications module
530, and an application data source 540. The computer system 500
supports one or more users for executing administrative processes
related to the debt recovery accounts. The systems and methods
described above with regard to FIGS. 1-4 may be implemented in
whole or in part with a variety of computer systems. Computer
systems for administering credit accounts are well-known and
modification to implement the features described above is a matter
of routine operation dependent on the particular platform, need for
system integration, and the preferences of the implementer.
[0038] The computing platform 510 includes a processor 512, memory
514, and an operating system 516. The computing platform 510
instantiates and executes program instructions to provide data
management, calculation, and communication functions. Common
computing platforms for financial applications include personal
computers (desktops, laptops, tablets, etc.), servers, clusters,
and mainframes. Other computing platforms include personal digital
assistants, cellular telephones, game systems, media systems,
embedded systems, wearable computers, and special purpose computers
(cash registers, ATMs, routers, medical systems, etc.). The
computing platform 510 executes the instructions of one or more
applications from the applications module 530 to operate on data
from the application data source 540. Input, output, and other
communications are provided through the system interface module
520.
[0039] The system interface module 520 provides means for
interacting with the resources of the computing platform 510 and
the applications and data processed thereby. The system interface
module 520 includes input, output, communication, and combination
devices and subsystems. Common system interface components include
displays, keyboards, mice, speakers, network devices (modems,
network cards, transceivers, etc.), and media drives (disc, CD-ROM,
DVD-ROM, tape, card, flash memory, etc.). The network devices may
integrate the computer system 500 into a larger network, such as a
telephony-based network, proprietary network, local area network,
intranet, wide area network, or the Internet. Networking may allow
the resources of the computer system 500 to be distributed among a
variety of geographically dispersed components, including multiple
or distributed computing platforms. Other system interface
components include printers, scanners, cameras, detectors, card
readers, prototypers, game controllers, touch screens, and many
others. Implementation of the system interface module 520 will
depend upon the nature of the computer platform 510 and the
circumstances and preferences of the user.
[0040] The applications module 530 includes any number of
application programs supporting administration of debt recovery
accounts. The applications module 530 includes credit account
management applications 550. The credit account management
applications 550 include a variety of administrative applications
(some not shown), such as an enrollment module 552 and an account
management module 554. The enrollment module 552 includes one or
more applications to assist in the identification of candidate
charged-off accounts, management of the solicitation of and
negotiation with candidate customers, and establishment of new debt
recovery accounts. In one embodiment, the enrollment module 552
implements computer assistance for the method 300 in FIG. 3. The
account management module 554 includes one or more applications to
assist in the management of active debt recovery accounts,
including billing, payment handling, charge handling, and
implementation of account terms (status, fees, interest, minimum
payments, conditions, etc.). In one embodiment, the account
management module 552 implements computer assistance for the method
of claim 400 in FIG. 4.
[0041] The application data source 540 includes any number of data
sources supporting administration of the data recovery accounts and
the related applications in the applications module 530. The
application data source 540 may include a variety of hardware
storage devices, such as hard drives, removable media (disc,
CD-ROM, DVD-ROM, tape, card, flash memory, etc.), or storage
servers or networks. The application data source 540 may also
include software systems, such as file systems, relational database
management systems, or a variety of other data management
platforms. The application data source 540 includes credit account
management data 560, including charged-off account data 562 and
debt recovery account data 564. The charged-off account data 562
includes records of customers with charged-off account balances.
The debt recovery account data 564 includes records for customers
with active debt recovery accounts. The records in the debt
recovery account data 564 may include, among other data, account
balance, credit limit, available credit, open-to-buy status, card
issued status, over-limit status, and periodic bill information
(suggested payment, open-to-buy payment, minimum payment, automatic
payment, etc.).
[0042] As an example, a particular configuration of a system for
implementing the present invention is provided. In various
embodiments, the system may be implemented on a single personal
computer or a system of networked machines and can be based on
ORACLE/SQL and SAS. The general process involves creating a file by
extracting information from the ORACLE database the running on the
server by issuing various SQL commands. We then process the file
using SAS on a UNIX box. The final file is shipped to a
solicitation group that can run programs off the network. The
account monitoring, which is the basis of determining when a credit
card should be issued, is performed on the UNIX box with SAS. The
collection of these accounts and the triggering of some of the
movement from "qualified for the program" to "not qualified" is
done on a network of machines using a program called B-frame.
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