U.S. patent application number 13/349290 was filed with the patent office on 2012-05-03 for computer-implemented methods, program product, and system to enhance banking terms over time.
This patent application is currently assigned to Metabank. Invention is credited to Scott Galit, Trent Sorbe.
Application Number | 20120109816 13/349290 |
Document ID | / |
Family ID | 40789763 |
Filed Date | 2012-05-03 |
United States Patent
Application |
20120109816 |
Kind Code |
A1 |
Galit; Scott ; et
al. |
May 3, 2012 |
COMPUTER-IMPLEMENTED METHODS, PROGRAM PRODUCT, AND SYSTEM TO
ENHANCE BANKING TERMS OVER TIME
Abstract
Managing access to a line of credit, for example, can include a
financial institution computer determining eligibility for a line
of credit program responsive to a consumers prior enrollment in a
prepaid card program and one or more of the following: the
consumer's historical direct deposit data, and data associated with
the consumer's historical behavior in the prepaid card program. The
financial institution computer can extend an amount of available
credit to the consumer through the line of credit program so that a
consumer credit limit is capped through underwriting criteria to
ensure that no more than a predetermined percentage of a consumer's
historic direct deposit amount is required for minimum repayments.
The financial institution computer can further receive loan
repayments over one or more predetermined direct deposit periods
and change the consumer credit limit by preselected increments
responsive to a change in the consumer's direct deposit amount.
Inventors: |
Galit; Scott; (New York,
NY) ; Sorbe; Trent; (Brookings, SD) |
Assignee: |
Metabank
Sioux Falls
SD
|
Family ID: |
40789763 |
Appl. No.: |
13/349290 |
Filed: |
January 12, 2012 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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12338712 |
Dec 18, 2008 |
8108279 |
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13349290 |
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61016213 |
Dec 21, 2007 |
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61052454 |
May 12, 2008 |
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61029975 |
Feb 20, 2008 |
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61042612 |
Apr 4, 2008 |
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61042624 |
Apr 4, 2008 |
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61032750 |
Feb 29, 2008 |
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61060559 |
Jun 11, 2008 |
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61082863 |
Jul 23, 2008 |
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61053056 |
May 14, 2008 |
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Current U.S.
Class: |
705/38 ;
705/39 |
Current CPC
Class: |
G06Q 20/105 20130101;
G06Q 20/10 20130101; G06Q 20/40 20130101; G06Q 20/108 20130101;
G06Q 40/02 20130101; G06Q 40/00 20130101; G06Q 20/20 20130101; G06Q
40/025 20130101 |
Class at
Publication: |
705/38 ;
705/39 |
International
Class: |
G06Q 40/02 20120101
G06Q040/02 |
Claims
1. A financial institution computer to access to a line of credit
associated with a prepaid card account, the financial institution
computer comprising: an input/output unit; one or more processors;
and one or more non-transitory memories encoded with computer
program, the computer program comprising a set of instructions
that, when executed by the one or more processors, operates to
perform the operations of: establishing a line of credit account
associated with one or more of a plurality of existing prepaid card
accounts for a consumer responsive to receiving an indication that
the consumers is eligible for the line of credit account,
eligibility being at least partially based on the consumer's
historical use of the one or more of the plurality of existing
prepaid card accounts, the line of credit account adapted to be
drawn in at least one of a plurality of separate predetermined loan
increments each being equal in value and less than a total credit
limit; determining a number of separate predetermined loan
increments to be added to the one or more of the plurality of
existing prepaid card accounts from the line of credit account
responsive to receiving data from one or more of a plurality of
access interface devices; loading the one or more of the plurality
of existing prepaid card accounts with at least one of the
plurality of separate predetermined loan increments that
corresponds with the number of separate predetermined loan
increments to thereby define loaded increments responsive to the
loaded increments being equal to or less than an available balance
of the line of credit account; determining a plurality of loan
repayment portions for a total loan amount based upon a plurality
of predetermined direct deposit periods, the total loan amount
defined as a total value of a loan advance fee plus the loaded
increments, the total value of the loan advance fee being equal to
a predetermined loan advance fee multiplied by the number of
separate predetermined loan increments; and deducting one of the
plurality of loan repayment portions from a direct deposit received
in the one or more of the plurality of existing prepaid card
account during each of the plurality of predetermined direct
deposit periods.
2. A financial institution computer as defined in claim 1, wherein
the computer program further comprises instruction that, when
executed by the one or more processors, perform the operation of:
increasing the total credit limit of the line of credit account by
a second number of separate predetermined loan increments to
thereby increase available credit for the consumer responsive to a
change in the consumer's direct deposit to the existing prepaid
card accounts, the increased available credit adapted to be drawn
in at least one of the plurality of separate predetermined loan
increments.
3. A financial institution computer as defined in claim 1, wherein
the computer program further comprises instruction that, when
executed by the one or more processors, perform the operation of:
reducing the total credit limit of the line of credit account by a
second number of separate predetermined loan increments to thereby
decrease existing available credit for the consumer responsive to a
change in the consumer's direct deposit to the one or more the
plurality of existing prepaid card accounts, the reduced available
credit adapted to be drawn in at least one of the plurality of
separate predetermined loan increments.
4. A financial institution computer as defined in claim 1, wherein
each of the one of the plurality of loan repayment portions are
substantially equal in value, wherein determining eligibility for
the line of credit further includes requiring a minimum age and a
government screening process, and wherein the total credit limit is
capped through underwriting criteria so that no more than a
predetermined percentage of the consumer's historic direct deposit
amount to the one or more of the plurality of existing prepaid card
accounts is required for a minimum repayment amount.
5. A financial institution computer as defined in claim 1, the
computer program further comprises instruction that, when executed
by the one or more processors, perform the operation of canceling a
draw from the line of credit account through a call to a customer
service center.
6. A financial institution computer as defined in claim 1, wherein
the financial institution is a federally chartered bank and the
line of credit is a bank product, and wherein the one of the
plurality of loan repayment portions are deducted from the directed
deposit prior to the direct deposit funds being made available to
the consumer.
7. Non-transitory computer-readable medium encoded with computer
program and operable on a computer associated with a financial
institution to define a financial institution computer, the
computer program operable to access to a line of credit associated
with a prepaid card account and comprising the instructions of:
establishing a line of credit account associated with one or more
of a plurality of existing prepaid card accounts for a consumer
responsive to receiving an indication that the consumers is
eligible for the line of credit account, eligibility being at least
partially based on the consumer's historical use of the one or more
of the plurality of existing prepaid card accounts, the line of
credit account adapted to be drawn in at least one of a plurality
of separate predetermined loan increments each being equal in value
and less than a total credit limit; determining a number of
separate predetermined loan increments to be added to the one or
more of the plurality of existing prepaid card accounts from the
line of credit account responsive to receiving data from one or
more of a plurality of access interface devices; loading the one or
more of the plurality of existing prepaid card accounts with at
least one of the plurality of separate predetermined loan
increments that corresponds with the number of separate
predetermined loan increments to thereby define loaded increments
responsive to the loaded increments being equal to or less than an
available balance of the line of credit account; determining a
plurality of loan repayment portions for a total loan amount based
upon a plurality of predetermined direct deposit periods, the total
loan amount defined as a total value of a loan advance fie plus the
loaded increments, the total value of the loan advance fee being
equal to a predetermined loan advance fee multiplied by the number
of separate predetermined loan increments; and deducting one of the
plurality of loan repayment portions from a direct deposit received
in the one or more of the plurality of existing prepaid card
account during each of the plurality of predetermined direct
deposit periods.
8. Non-transitory computer-readable medium as defined in claim 7,
the computer program further comprises the instruction of:
increasing the total credit limit of the line of credit account by
a second number of separate predetermined loan increments to
thereby increase existing available credit for the consumer
responsive to a change in the consumer's direct deposit to the one
or more the plurality of existing prepaid card accounts, the
increased available credit adapted to be drawn in at least one of
the plurality of separate predetermined loan increments.
9. Non-transitory computer-readable medium as defined in claim 7,
the computer program further comprises instruction of: reducing the
total credit limit of the line of credit account by a second number
of separate predetermined loan increments to thereby decrease
existing available credit for the consumer responsive to a change
in the consumer's direct deposit to the one or more the plurality
of existing prepaid card accounts, the reduced available credit
adapted to be drawn in at least one of the plurality of separate
predetermined loan increments.
10. Non-transitory computer-readable medium as defined in claim 8,
wherein each of the one of the plurality of loan repayment portions
are substantially equal in value, wherein determining eligibility
for the line of credit further includes requiring a minimum age and
a government screening process, and wherein the total credit limit
is capped through underwriting criteria so that no more than a
predetermined percentage of the consumer's historic direct deposit
amount to the one or more of the plurality of existing prepaid card
accounts is required for a minimum repayment amount.
11. Non-transitory computer-readable medium as defined in claim 7,
the computer program further comprises instruction of canceling a
draw from the line of credit account through a call to a customer
service center, and wherein the one of the plurality of loan
repayment portions are deducted from the directed deposit prior to
the direct deposit funds being made available to the consumer.
12. Non-transitory computer-readable medium as defined in claim 7,
wherein the financial institution is a federally chartered bank and
the line of credit is a bank product.
13. A computer-implemented method of accessing a line of credit
associated with a prepaid card account, the method comprising the
steps of: establishing, by a computer associated with a financial
institution to define a financial institution computer, a line of
credit account associated with one or more of a plurality of
existing prepaid card accounts for a consumer responsive to
receiving an indication that the consumers is eligible for the line
of credit account in a first process, eligibility being at least
partially based on the consumer's historical use of the one or more
of the plurality of existing prepaid card accounts, the line of
credit account adapted to be drawn in at least one of a plurality
of separate predetermined loan increments each being equal in value
and less than a total credit limit; determining, by the financial
institution computer, a number of separate predetermined loan
increments to be added to the one or more of the plurality of
existing prepaid card accounts from the line of credit account
responsive to receiving data from one or more of a plurality of
access interface devices; loading, by financial institution
computer, the one or more of the plurality of existing prepaid card
accounts with at least one of the plurality of separate
predetermined loan increments that corresponds with the number of
separate predetermined loan increments to thereby define loaded
increments responsive to the loaded increments being equal to or
less than an available balance of the line of credit account;
determining, by the financial institution computer, a plurality of
loan repayment portions for a total loan amount based upon a
plurality of predetermined direct deposit periods, the total loan
amount defined as a total value of a loan advance fee plus the
loaded increments, the total value of the loan advance fee being
equal to a predetermined loan advance fee multiplied by the number
of separate predetermined loan increments; and deducting, by the
financial institution computer, one of the plurality of loan
repayment portions from a direct deposit received in the one or
more of the plurality of existing prepaid card account during each
of the plurality of predetermined direct deposit periods.
14. A computer-implemented method as defined in 13, further
comprising: increasing, by the financial institution computer, the
total credit limit of the line of credit account by a second number
of separate predetermined loan increments to thereby increase
available credit for the consumer responsive to a change in the
consumer's direct deposit to the existing prepaid card accounts,
the increased available credit adapted to be drawn in at least one
of the plurality of separate predetermined loan increments.
15. A computer-implemented method as defined in 13, the method
further comprising: reducing, by the financial institution
computer, the total credit limit of the line of credit account by a
second number of separate predetermined loan increments to thereby
decrease existing available credit for the consumer responsive to a
change in the consumer's direct deposit to the one or more the
plurality of existing prepaid card accounts, the reduced available
credit adapted to be drawn in at least one of the plurality of
separate predetermined loan increments.
16. A computer-implemented method as defined in 13, wherein each of
the one of the plurality of loan repayment portions are
substantially equal in value, wherein determining eligibility for
the line of credit further includes requiring a minimum age and a
government screening process, and wherein the total credit limit is
capped through underwriting criteria so that no more than a
predetermined percentage of the consumer's historic direct deposit
amount to the one or more of the plurality of existing prepaid card
accounts is required for a minimum repayment amount.
17. A computer-implemented method as defined in 13, further
comprises: canceling, by the financial institution computer, a draw
from the line of credit account through a call to a customer
service center.
18. A computer-implemented method as defined in 13, wherein each of
the one of the plurality of loan repayment portions are
substantially equal in value, wherein determining eligibility for
the line of credit further includes requiring a minimum age and a
government screening process, and wherein the total credit limit is
capped through underwriting criteria, so that no more than a
predetermined percentage of the consumer's historic direct deposit
amount to the one or more of the plurality of existing prepaid card
accounts is required for a minimum repayment amount.
19. A computer-implemented method as defined in 13, wherein the one
of the plurality of loan repayment portions are deducted from the
directed deposit prior to the direct deposit funds being made
available to the consumer.
20. A computer-implemented method as defined in 13, wherein the
total credit limit is capped through underwriting criteria so that
no more than a predetermined percentage of the consumer's historic
direct deposit amount to the one or more of the plurality of
existing prepaid card accounts is required for a minimum repayment
amount.
Description
RELATED APPLICATIONS
[0001] This application is a continuation of and claims priority
and the benefit to U.S. patent application Ser. No. 12/338,712, by
Sorbe et al., titled "Computer-Implemented Methods, Program
Product, and System to Enhance Banking Terms Over Time," filed Dec.
18, 2008, which claims priority to and the benefit of: U.S.
Provisional Patent Application Ser. No. 61/016,213, by Sorbe et
al., titled "Transfer Account Systems, Computer Program Products,
and Associated Methods" filed Dec. 21, 2007; U.S. Provisional
Patent Application Ser. No. 61/052,454, by Sorbe et al., titled
"Transfer Account Systems, Computer Program Products, and Methods
to Prioritize Payments from Preselected Bank Account" filed May 12,
2008; U.S. Provisional Patent Application Ser. No. 61/029,975, by
Sorbe et al., titled "Methods To Advance Loan Proceeds On Prepaid
Cards, Associated Systems and Computer Program Products" filed on
Feb. 20, 2008; U.S. Provisional Patent Application Ser. No.
61/042,612, by Ahlers et al., titled "System, Program Product, and
Associated Methods To Autodraw for Micro-Credit Attached to a
Prepaid Card" filed on Apr. 4, 2008; U.S. Provisional Patent
Application Ser. No. 61/042,624, by Crowe et al., titled "System,
Program Product, and Method To Authorize Draw for Retailer
Optimization" filed on Apr. 4, 2008; U.S. Provisional Patent
Application Ser. No. 61/032,750, by Ahlers et al., titled "Methods,
Program Product, and System for Micro-Loan Management" filed on
Feb. 29, 2008; U.S. Provisional Patent Application Ser. No.
61/060,559, by Gant et al., titled "Methods, Program Product, and
System to Enhance Banking Terms Over Time" filed on Jun. 11, 2008;
U.S. Provisional Patent Application Ser. No. 61/082,863, by Ahlers
et al., titled "System, Program Product, and Method For Debit Card
and Checking Account Autodraw" filed on Jul. 23, 2008; U.S.
Provisional Patent Application Ser. No. 61/053,056, by Galit et
al., titled "System, Program Product, and Method For Loading a Loan
On a Pre-Paid Card" filed on May 14, 2008, all of which are each
incorporated herein by reference in their entireties. This
application also relates to U.S. patent application Ser. No.
12/338,365, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Associated Computer-Implemented
Methods" filed on the same day as this application, Dec. 18, 2008;
U.S. patent application Ser. No. 12/338,402, by Sorbe et al.,
titled "Transfer Account Systems, Computer Program Products, and
Associated Computer-Implemented Methods" filed on the same day as
this application, Dec. 18, 2008; U.S. patent application Ser. No.
12/338,440, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Associated Computer-Implemented
Methods" filed on the same day as this application, Dec. 18, 2008;
U.S. patent application Ser. No. 12/338,584, by Sorbe et al.,
titled "Transfer Account Systems, Computer Program Products, and
Computer-Implemented Methods to Prioritize Payments from
Preselected Bank Account" filed on the same day as this
application, Dec. 18, 2008; U.S. patent application Ser. No.
12/338,465, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Computer-implemented Methods to
Prioritize Payments from Preselected Bank Account" filed on the
same day as this application, Dec. 18, 2008; U.S. patent
application Ser. No. 12/338,684, by Ahlers et al., titled
"Computer-Implemented Methods, Program Product, and System for
Micro-Loan Management" filed on the same day as this application,
Dec. 18, 2008, all of which are each incorporated herein by
reference in their entireties.
FIELD OF INVENTION
[0002] The present invention relates generally to the financial
service and banking industries, and, more particularly, to systems,
program products, and associated computer-implemented methods for
providing a micro-loan product to prepaid cards and for managing
access to a line of credit for a prepaid card.
BACKGROUND
[0003] It is known that tens of millions of consumers in the United
States have either limited or no access to traditional credit,
either as a result of poor or limited credit history. it is further
known that millions of prepaid cards are issued each year in the
United States. It is also known that many of the consumers with
prepaid cards rely primarily on cash and a prepaid card account for
their personal finances; these consumers, for example, often do not
have a traditional checking, savings, or other bank deposit
account, and they usually do not write checks. It has been
acknowledged by many that those without bank accounts and who often
rely on prepaid cards may be underserved, These consumers are
typically not easily able to access credit through traditional
banking channels, though they may have an ongoing relationship with
a prepaid card issuer, for example.
[0004] It is recognized that short-term lending is a $20 billion
plus per year industry, and some industry experts believe an
appropriate manner of offering micro-lending may be through a
federal bank, especially to those underserved, such as those not
having a checking account or other bank deposit account. Yet there
can be many obstacles to those being underserved to using a federal
bank or any bank for that matter, based on, for example, lack of
effective bank products, risks associated with bank products, use
of FICO scores to determine credit availability, and costs to those
being underserved does not, or is not perceived to, outweigh the
benefits for use of existing bank products.
[0005] As described in U.S. Provisional Patent Applications Ser.
No. 61/032,750 titled "Methods, Program Product, and System for
Micro-Loan Management" filed on Feb. 29, 2008, Applicants have
previously provided introductory micro-lending and line of credit
and products to those underserved by traditional bank products. Yet
those consumers with access to and experience with non-traditional
micro-lending and line of credit bank products, whether through a
payroll prepaid card or similar program, however, may still be
underserved by the terms available with these introductory
products.
SUMMARY OF INVENTION
[0006] In view of the foregoing, Applicants have recognized a need
for enhanced lending options, bank products, and prepaid card
products for consumers with access to and experience with
micro-lending and non-traditional line of credit bank products,
whether through a payroll prepaid card or similar program. The
embodiments of the present invention reward responsible behavior by
the consumer with more favorable loan terms. The present invention
provides embodiments of systems, program products, and associated
computer-implemented methods for micro-loans, including through and
by use of prepaid cards, and bank product management and enhanced
lending options for both banks and bank customers, as well as other
financial institutions.
[0007] For example, Applicants have recognized a growing demand and
need within the prepaid card industry to provide more favorable
credit options to consumers who have a payroll prepaid card and who
demonstrate responsible behavior with micro-lending and line of
credit bank products. A payroll prepaid card is a prepaid card
associated with a recurring direct deposit, e.g., an employer's
payroll deposit, a federal or state government electronic benefits
payment, an annuity, or other stream of payments as understood by
those skilled in the art. In general, eligibility for a payroll
prepaid card requires verification of a minimum age, e.g., 18 years
or older, and a government screening process, e.g., by the Office
of Foreign Assets Control of the United States Department of the
Treasury, to comply with federal regulations, such as, for example,
the Patriot Act, as understood by those skilled in the art.
Applicants have also recognized that historical data associated
with an introductory micro-lending and line of credit bank product
associated with a prepaid card can be analyzed to determine
eligibility for enhanced products and programs with more favorable
terms to the consumer. This micro-lending and line of credit bank
product, for example, can provide loan funds only in one or more
preselected increments with a fee associated with each increment,
with repayment through a direct deposit. This historical data
includes, for example, the consumer's use of a line of credit
associated with the introductory micro-lending bank product,
subsequent repayment history, and historical direct deposit
information. According to embodiments of the present invention, a
consumer exhibiting responsible behavior with the introductory
micro-lending and line of credit program for a certain period of
time, e.g., six months, without late payments, defaults,
delinquency, or other such irresponsible behavior as understood by
those skilled in the art, can become eligible for a line of credit
program with loan terms more favorable to the consumer than an
introductory program. In addition, eligibility to the line of
credit program can be denied according to embodiments of the
present invention if a consumer has a prior charged-off line of
credit or an outstanding, unpaid existing line of credit.
Advantageously, eligibility does not depend on NCO scores, as
understood by those skilled in the art, which Applicants further
recognize as at least one source of the problem of credit
availability to those underserved by traditional bank products.
[0008] Embodiments of the present invention provide, for example,
for the enrollment of a consumer in the enhanced line of credit
program through an on-line process. For example, a consumer can
access a website or other computer program product from the bank or
financial institution, located a computer server associated with
the bank or financial institution, to enroll in the line of credit
program using a browser or other software through a computer
network, through a global communication network such as the
Internet or Web 2.0, or through a computer program product stored
on a tangible computer readable memory or storage device, Having
determined that a consumer is eligible, the enrollment process can
include, for example, requesting an e-mail address from the
consumer for statement purposes. In addition, the enrollment of the
consumer in the line of credit program is responsive to the
consumer's acceptance of terms and conditions of the line of credit
program. The terms and conditions of the line of credit program can
include a privacy policy as understood by those skilled in the art.
The on-line enrollment embodiments of the present invention
advantageously provide a convenient and cost effective way for a
consumer to register for the line of credit program with the bank
or financial institution without having to enter a brick and mortar
location during business hours.
[0009] Embodiments of the present invention provide, for example,
for assessing a loan advance fee of a predetermined percentage,
e.g., 10%, of the value of the advance so that the loan fee is
proportional to the value of the loan and for receiving loan
repayments over one or more predetermined direct deposit periods,
e.g., 5 periods. In addition, repayment can include an electronic
check drawn on the prepaid card account. For example, a loan amount
of $500 can have a loan advance fee with a predetermined percentage
of 10% of the value of the loan; therefore, the loan advance fee
can be $50 (10%.times.$500=$50). The total $550 ($500 principle+$50
fee) can, for example, be paid back in 5 payments of $110 each,
using an automatic electronic check. As understood by those skilled
in the art, the interest rate and other repayment terms of the
embodiments of the present invention can be more favorable and less
expensive to the consumer than introductory line of credit
products.
[0010] Embodiments of the present invention provide, for example,
for receiving authorization for an advance under the line of credit
program from the consumer so that the consumer authorizes all
advances. There are no automatic advances. Authorization can
conveniently include a written correspondence from the customer, a
customer selection on a website, a telephone conversation with an
interactive voice response unit (IVRU), a telephone conversation
with a customer service representative, an interaction using mobile
phone, or a combination of these as understood by those skilled in
the art, allowing a customer to obtain a loan without the need to
walk into a brick and mortar location. Similarly, embodiments of
the present invention provide, for example, for cancelling an
advance through a call to a customer service center.
[0011] Embodiments of the present invention provide, for example,
for extending an amount of credit to the enrolled consumer through
the line of credit program defining a consumer credit limit.
According to embodiments of the present invention, the consumer
credit limit is capped through underwriting criteria to ensure that
no more than a predetermined percentage of a consumer's historic
direct deposit amount is required for minimum repayments associated
with the line of credit program. In addition, embodiments of the
present invention can, for example, provide for a maximum allowable
credit limit for a consumer that is less than the cap or ceiling
determined by the underwriting criteria. For example, a consumer's
historic direct deposit amount, or take home pay, can be $1100,
paid twice a month. If the underwriting criteria is to ensure that
no more than, e.g., 20%, of take home pay is required for a minimum
loan repayment, then under the line of credit program the
consumer's minimum payment can be up to $220 per pay period. For a
typical loan period with 5 repayments, the consumer credit limit
can be a total of $1,100 for principle and interest ($220) per pay
period.times.5 pay periods=$1,100). If the loan advance fee has a
predetermined percentage of 10% under the line of credit program,
then the consumer credit limit can be $1,000 for principle
only.
[0012] Embodiments of the present invention provide, for example,
for changing the consumer credit limit. When the amount of the
recurring direct deposit for the consumer changes, for example, by
the consumer getting a raise, by changing the amount of tax
withholding associated with each paycheck, by wages being garnished
by the employer, or other event as understood by those skilled in
the art, the consumer credit limit can be adjusted accordingly
according to embodiments of the present invention. Changes can
occur in predetermined increments, e.g., $100 increments. In
addition, embodiments of the present invention provide, for
example, for notifying the consumer of changes in the consumer
credit limit through e-mail, traditional mail, or both.
[0013] Embodiments of the present invention provide, for example,
for suspending access to funds under the line of credit program in
the event of a missed payment, an interruption in direct deposits,
a negative card balance, a preselected threshold number of
consecutive loans from the line of credit program within a
preselected time period, or a combination thereof as understood by
those skilled in the art. As understood by those skilled in the
art, the major risks to the lender are that the customer loses or
changes jobs prior to final loan repayment or terminates the direct
deposit to the prepaid card. While the embodiments of the present
invention reward responsible behavior by the consumer with more
favorable loan terms, the embodiments also deny access to the
favorable terms in the event of irresponsible behavior, protecting
the lender from further risk exposure and protecting the consumer
from the effects additional over-borrowing.
[0014] According to other embodiments of the present invention, the
financial institution can be a federally chartered bank, and the
line of credit program can be bank product so that the line of
credit program complies with federal Regulation Z, including
monthly statements with all fees assessed, as understood by those
skilled in the art. Advantageously, these embodiments provide
consumer protection for the line of credit product, as well as
monitoring, control, and management by a bank, which can be a
significant benefit from the perspective of the customer,
regulators, and public opinion through consumer activists.
[0015] For example, according to an embodiment of a
computer-implemented method of managing access to a line of credit
for a prepaid card, the computer-implemented method includes
determining eligibility for a line of credit program from a
financial institution responsive to a consumer's prior enrollment
in a payroll prepaid card program and one or more of the following:
the consumer's historical direct deposit data, and data associated
with the consumer's historical behavior in the payroll card
program. The computer-implemented method also includes enrolling
the consumer in the line of credit program through an on-line
process responsive to an acceptance of terms and conditions of the
line of credit program by the consumer. The computer-implemented
method further includes extending an amount of available credit to
the enrolled consumer through the line of credit program defining a
consumer credit limit. The consumer credit limit can be capped
through underwriting criteria to ensure that no more than a
predetermined percentage of a consumer's historic direct deposit
amount is required for minimum repayments associated with the line
of credit program. The computer-implemented method also includes
receiving authorization for an advance under the line of credit
program from the consumer so that the consumer authorizes all
advances, assessing a loan advance fee of a predetermined
percentage of the value of the advance, receiving loan repayments
over one or more predetermined direct deposit periods, and changing
the consumer credit limit by preselected increments responsive to a
change in the consumer's direct deposit amount.
[0016] In an embodiment of a program product stored in one or more
tangible computer readable media and readable by a computer, for
example, the program product can operate to perform the various
instructions when read by the computer. The instructions include
determining eligibility for a line of credit program from a
financial institution responsive to a consumer's prior enrollment
in a payroll prepaid card program and one or more of the following:
the consumer's historical direct deposit data, and data associated
with the consumer's historical behavior in the payroll card
program, The instructions also include enrolling the consumer in
the line of credit program through an on-line process responsive to
an acceptance of terms and conditions of the line of credit program
by the consumer and extending an amount of available credit to the
enrolled consumer through the line of credit program. The
instructions include receiving authorization for an advance under
the line of credit program from the consumer no that the consumer
authorizes all advances, assessing a loan advance fee of a
predetermined percentage of the value of the advance, receiving
loan repayments over one or more predetermined direct deposit
periods, and changing the consumer credit limit by preselected
increments responsive to a change in the consumer's direct deposit
amount.
[0017] An embodiment of a system to manage access to a line of
credit for a prepaid card, for example, includes a plurality of
customer access interface devices and a remote computer server
positioned to provide communication with each of the plurality of
customer access interface devices, being associated with a
financial institution, and having memory. The system also includes
program product stored in the memory of the computer server no that
the program product operates to perform various instructions, such
as determining eligibility for a line of credit program from a
financial institution responsive to a consumer's prior enrollment
in a payroll prepaid card program and one or more of the following:
the consumer's historical direct deposit data, and data associated
with the consumers historical behavior in the payroll card program.
The instructions also include enrolling the consumer in the line of
credit program through an on-line process responsive to an
acceptance of terms and conditions of the line of credit program by
the consumer, extending an amount of available credit to the
enrolled consumer through the line of credit program, receiving
authorization for an advance under the line of credit program from
the consumer so that the consumer authorizes all advances, and
assessing a loan advance fee of a predetermined percentage of the
value of the advance. The instructions also include receiving loan
repayments over one or more predetermined direct deposit periods
and changing the consumer credit limit by preselected increments
responsive to a change in the consumer's direct deposit amount.
[0018] The benefits of the embodiments of the present invention
include, for example, providing a short-term borrowing alternative
that is more cost effective than other expensive financial service
products available and more convenient to the consumer. Embodiments
of the present invention also allow the combining of product
enhancements with other complimentary enhancements and can continue
to provide significantly improved services and credit products by
banking or other financial institutions with the conveniences of
traditional banking products.
BRIEF DESCRIPTION OF DRAWINGS
[0019] So that the manner in which the features and benefits of the
invention, as well as others which will become apparent, may be
understood in more detail, a more particular description of the
invention briefly summarized above may be had by reference to the
embodiments thereof which are illustrated in the appended drawings,
which form a part of this specification. It is also to be noted,
however, that the drawings illustrate only various embodiments of
the invention and are therefore not to be considered limiting of
the invention's scope as it may include other effective embodiments
as well.
[0020] FIG. 1 is a flow diagram of a computer-implemented method of
managing access to a line of credit for a prepaid card according to
an embodiment of the present invention;
[0021] FIG. 2 is a flow diagram of a computer-implemented method of
managing access to a line of credit for a prepaid card according to
an embodiment of the present invention;
[0022] FIG. 3 is a schematic diagram of a system to advance funds
to a customer of a retailer according to an embodiment of the
present invention;
[0023] FIG. 4 is a schematic diagram of a computer server having
program product stored in memory thereof according to an embodiment
of the present invention;
[0024] FIG. 5 is a schematic diagram of a program product according
to an embodiment of the present invention;
[0025] FIG. 6 is a schematic diagram of loan set up flow according
to embodiments of the present invention; and
[0026] FIG. 7 is a schematic diagram of a payroll processor system
according to an embodiment of the present invention.
DETAILED DESCRIPTION OF INVENTION
[0027] The present invention will now be described more fully
hereinafter with reference to the accompanying drawings, which
illustrate embodiments of the invention. This invention may,
however, be embodied in many different forms and should not be
construed as limited to the illustrated embodiments set forth
herein; rather, these embodiments are provided so that this
disclosure will be thorough and complete, and will fully convey the
scope of the invention to those skilled in the art. Like numbers
refer to like elements throughout.
[0028] Applicants have recognized that historical data associated
with an introductory micro-lending and line of credit bank product
associated with a payroll prepaid card, including a program that
provides funds only in one or more preselected increments, can be
analyzed to determine eligibility for enhanced products and
programs with more favorable terms to the consumer. A payroll
prepaid card is a prepaid card associated with a recurring direct
deposit, e.g., an employer's payroll deposit, a federal or state
government electronic benefits payment, an annuity, or other stream
of payments as understood by those skilled in the art. Typically,
payroll funds are loaded on the prepaid card or posted to the
prepaid card by a prepaid card processor associated with the
prepaid card account. In general, eligibility for a prepaid card
requires verification of a minimum age, e.g., 18 years or older,
and a government screening process, e.g., by the Office of Foreign
Assets Control of the United States Department of the Treasury, to
comply with federal regulations, such as, for example, the Patriot
Act, as understood by those skilled in the art. The historical data
includes, for example, the consumer's use of a line of credit
associated with the introductory micro-lending bank product,
subsequent repayment history, and historical direct deposit
information. According to embodiments of the present invention, a
consumer exhibiting a recurring income stream, i.e., direct
deposits, for a certain period of time, e.g., six months, and
responsible behavior with the introductory micro-lending and line
of credit program for a certain period of time, e.g., six months,
without late payments, defaults, delinquency, or other such
irresponsible behavior as understood by those skilled in the art,
can become eligible for a line of credit program with loan terms
more favorable to the consumer than an introductory program. In
addition, eligibility to the line of credit program can be denied
according to embodiments of the present invention if a consumer has
a prior charged-off line of credit or an outstanding, unpaid
existing line of credit. Advantageously, eligibility does not
depend on FICO scores, as understood by those skilled in the art,
which Applicants further recognize as at least one source of the
problem of credit availability to those underserved by traditional
bank products.
[0029] The embodiments of the present invention provide a consumer
with a line of credit product with higher credit limits with longer
payback terms than introductory products as an upgrade or next step
in a ladder of products for the consumer demonstrating responsible
credit behavior. The introductory product can provide funds only in
one or more preselected increments. The embodiments of the present
invention do not limit draws to the line of credit in increments,
advantageously allowing a consumer to graduate from an increment
line of credit product to a non-increment line of credit
product.
[0030] As illustrated in FIGS. 1-7, embodiments of systems 400,
program products 308, 401, 500 and computer-implemented methods
100, 200 of the present invention can be provided through an
electronic communication network 309 such as a global communication
network like the Internet, World Wide Web, or Web 2.0, through a
banking type of network, or through a retail, customer or intranet
type of network as understood by those skilled in the art. Program
products 308, for example, can be stored on a computer server 307,
403 at bank or financial institution 305 having memory and be
accessible by a plurality of computers 301, and each can have their
own respective memory 303, as well as operating system and browsing
software or program product as desired and as understood by those
skilled in the art, at bank customer locations, e.g., customer
homes, office, and retail locations.
[0031] Embodiments of the present invention provide, for example,
for the enrollment of a consumer in the enhanced line of credit
program from a bank, a financial institution, or a lending
institution through an on-line process. For example, a consumer can
access a website or other computer program product 401 from the
bank or financial institution 305, located a computer server 307,
403 associated with the bank or financial institution 305, to
enroll in the line of credit program using a browser or other
software through a computer network 309, through a global
communication network such as the Internet or Web 2.0, or through a
computer program product stored on a tangible computer readable
memory or storage device. Having determined that a consumer is
eligible, the enrollment process can include, for example,
requesting an e-mail address from the consumer for statement
purposes. The enrollment of the consumer in the line of credit
program further includes the consumer's acceptance of terms and
conditions of the line of credit program through clicking on a
button or other such mechanism as understood by those skilled in
the art. The terms and conditions of the line of credit program can
include a privacy policy as understood by those skilled in the art.
The on-line enrollment embodiments of the present invention
advantageously provide a convenient and cost effective way for a
consumer to register for the line of credit program with the bank
or financial institution without having to enter a brick and mortar
location during business hours.
[0032] Embodiments of the present invention provide, for example,
for assessing a loan advance fee of a predetermined percentage,
e.g., 10%, of the value of the advance by the computer server 307,
403 so that the loan fee is proportional to the value of the loan
and for receiving loan repayments over one or more predetermined
direct deposit periods, e.g. 5 periods. In addition, repayment can
include an electronic check drawn on the prepaid card account. For
example, a loan amount of $500 can have a loan advance fee with a
predetermined percentage of 10% of the value of the loan;
therefore, the loan advance foe can be $50 (10%.times.$500=$50).
The total $550 ($500 principle+$50 fee) can, for example, be paid
back in 5 payments of $110 each using an automatic electronic
check. As understood by those skilled in the art, the interest rate
and other repayment terms of the embodiments of the present
invention can be more favorable and less expensive to the consumer
than introductory line of credit products.
[0033] Embodiments of the present invention provide, for example,
for receiving authorization for an advance under the line of credit
program from the consumer by the computer server 307, 403 so that
the consumer authorizes all advances. There are no automatic
advances. Authorization can conveniently include a written
correspondence from the customer, a customer selection on a
website, a telephone conversation with an interactive voice
response unit (IVRU), a telephone conversation with a customer
service representative, an interaction using mobile phone, or a
combination of these as understood by those skilled in the art,
allowing a customer to obtain a loan without the need to walk into
a brick and mortar location. Similarly, embodiments of the present
invention provide, for example, for cancelling an advance through a
call to a customer service center by the computer server 307,
403.
[0034] Embodiments of the present invention provide, for example,
for extending an amount of credit to the enrolled consumer by the
computer server 307, 403 through the line of credit program. The
amount of credit extended defines a consumer credit limit. The
consumer credit limit is capped through underwriting criteria to
ensure that no more than a predetermined percentage of a consumer's
historic direct deposit amount, or take home pay, is required for
minimum repayments associated with the line of credit program. In
addition, embodiments of the present invention can, for example,
provide for a maximum allowable consumer credit limit that is less
than the cap determined by the underwriting criteria. That is, the
line of credit program embodiments of the present invention can
include a ceiling, e.g., $1,000, on the amount credit available to
any consumer. For example, if a consumer's historic direct deposit
amount or take home pay were such that the underwriting criteria
were to suggest a consumer credit limit of e.g., $1,500, but the
maximum allowable consumer credit limit under the program is, e.g.,
$1,000, then the credit limit for the consumer can be, e.g.,
$1,000, despite the underwriting writing criteria.
[0035] Embodiments of the present invention provide, for example,
for increasing or decreasing the consumer credit limit by the
computer server 307, 403 in predetermined increments, e.g., $100
increments, and for notifying the consumer of changes in the
consumer credit limit through e-mail, traditional mail, or both. If
the consumer gets a raise or otherwise experiences an increase in
take home pay, the consumer credit limit can be increased. If the
consumer's take home pay is lowered by wages being garnished by the
employer or otherwise, the consumer credit limit can be decreased.
The changes in the consumer credit limit by the computer server
307, 403 can be immediate and automatic, responsive to changes with
the direct deposit.
[0036] Embodiments of the present invention provide, for example,
for active monitoring of the line of credit program by the computer
server 307, 403 and suspending the consumer's access to funds in
the event of irresponsible or risky behavior. Such behavior can
include, for example, a missed payment, an interruption in direct
deposits, a negative card balance, a preselected threshold number
of consecutive loans from the line of credit program within a
preselected time period, or a combination thereof as understood by
those skilled in the art. While the embodiments of the present
invention reward responsible behavior by the consumer with more
favorable loan terms, the embodiments also deny access to the
favorable terms in the event of irresponsible behavior, protecting
the lender from further risk exposure and protecting the consumer
from the effects additional over-borrowing.
[0037] Embodiments of the present invention advantageously provide
consumer protection for the line of credit product, as well as
monitoring, control, and management by a bank, which can be a
significant benefit from the perspective of the customer,
regulators, and public opinion through consumer activists. The
financial institution can be, for example, a federally chartered
bank according to embodiments of the present invention. In
addition, the line of credit program can be bank product, with
monthly statements documenting all fees assessed, so that the line
of credit program complies with federal Regulation Z, as understood
by those skilled in the art.
[0038] For example, as illustrated in FIG. 6, a customer C can go
on-line through a computer or IVRU 22 in a system 20 to register at
a website using a program product according to embodiments of the
present invention and launched from a server, e.g., at a loan
processor, underwriting organization, bank, lending institution,
other financial institution, payroll processing company, or other
entity which can provide the line of credit product, among others,
as will be understood by those skilled in the art. The form or
qualification parameters can be consistent with one or more
underwriting organizations or institutions or set/defined by the
bank or lending institution.
[0039] As understood by those skilled in the art, a loan,
micro-loan, repayment, line of credit, or other type of payment
processor, such as provided by First Data Corp., Total Systems,
Inc., Fidelity National Information, Inc., or as custom developed
by a bank, a financial institution, or other organization, operates
to provide a customer interface on a line of credit or micro-loan
request and determines an decides whether a potential or existing
customer qualifies for a line of credit product. This line of
credit or loan processor 315, for example, can be outsourced by a
bank if desired, and numerous different loan processors or entities
that handle this function can be used as well (see, e.g., FIG. 3
with computer server 315 handling the payment processor and
interface access roles for customer lines of credit 317, for
example). If the customer qualifies, the credentials can be passed
to a bank or other financial institution 305 or other organization,
and then a flag, code, notation, or other identifier can be
associated with a customer's profile so that when the customer
desires to access the line of credit, e.g., through a customer
purchase transaction using the prepaid card, the process
acknowledges the identifier to then allow incremental micro-loans
on the line of credit to be granted as described herein. Notably,
often a loan or other type of payment processor is card processor
specific, and in this instance, a dedicated card processor (see,
e.g., prepaid card processor 311 in FIG. 3, and this processor
likewise can be associated with computers and have a customer
prepaid card account 313 associated with or processed thereby as
understood by those skilled in the art) can be used, but also as
shown in FIG. 6 and described further in U.S. Provisional Patent
Application Ser. No. 61/029,975 titled "Methods To Advance Loan
Proceeds on Prepaid Cards, Associated Systems and Computer Program
Products" filed on Feb. 20, 2008 and incorporated herein by
reference methods can be used as well to handle card interface to a
variety of card processors (e.g., Metavante Corporation
("Metavante") of Milwaukee, Wisconsin) as understood by those
skilled in the art.
[0040] The customer transaction using a prepaid card, for example,
can then cause the request for the loan advance through the line of
credit processor or other payment processor. The credit processor
then posts notification of the micro-loan request through an API
Post to post the loan advance in real time through an API Router 32
as understood by those skilled in the art. The API Router 32 passes
the request through a security firewall 35 which passes the request
through the API to a card processor 42, such as Metavante, and
Process to API 44. This information can be compared to flat files
46, 60, 70, e.g., data files that have no structural relationship
as understood by those skilled in the art, or flat files database
and the bank or institution reconciles the loan transaction with
the customer's line of credit or other account 62. Some card
processors, for example, provide additional processor interfaces or
allow development of additional processor interfaces, as understood
by those skilled in the art, (see, e.g., API to Program Manager 52
(e.g., Program Manager operations, for example, can be provided by
various financial solution/program management companies, such as
AccountNow of San Ramon, Calif., as understood by those skilled in
the art), program manager 54, and Program Manager API 56) such as
Metavante card processor 58 should such processor be used by the
credit processor or other payment processor for a customer
transaction.
[0041] Embodiments of systems, program products, and
computer-implemented methods of the present invention can include,
for example, for substantially all programs if desired, features
such as any repayment of draws on the line of credit can be
automatically collected from the next several electronic deposits
regardless of payment source. As payments are received, fees also
can be paid first then the payment applied to the oldest
outstanding draw amount. When payments are received, total
available line limit is restored by the payment amount. If funds
from the electronic deposit are not sufficient to cover the
expected payment, a partial repayment can be made in the full
amount of the electronic deposit resulting in an unpaid balance on
the line. Repayment of the remaining unpaid balance can be taken
from subsequent electronic deposits until the line has been paid in
full. Other cash equivalent repayment options also can be accepted
and processed by a line of credit processor as understood by those
skilled in the art.
[0042] It will also be understood by those skilled in the art that
embodiments of the line of credit product or program product, for
example, can be associated with a payroll processing company that
processes direct deposits (see, e.g., FIG. 7). Embodiments of the
program product and computer-implemented methods can be added to
product or service offerings by the payroll processing company 710
so that it can be offered to their customers independent of bank or
product (DDA or payroll card), by taking money or funds out at the
source 710, e.g., as the payroll file is prepared 720 and before
the direct deposit is even originated, or loaded onto a prepaid
card, for example, 52, so that loan repayment from direct deposit
funds occurs prior to the direct deposit funds being made available
in the consumer's account. These embodiments can also allow the
processing company 710 to have more direct information on
employment history. A payroll processing company 710 can also use a
loan processing system 740, loan processor, or other payment
processor either within their facilities or as an outsourcing
entity to allow the provision of enrolling and providing customer
payroll information 724 and for tracking and reconciling repayment
or updated customer payroll information with repayments pulled 744.
The payroll can be sent, loaded or processed by a payroll processor
730 for ACH transmittal, check generation, or card
loading/providing, for example (see, e.g., FIG. 7). These
embodiments of associated computer-implemented methods, for
example, can include providing a prepaid card to an employee who
gets direct deposit to a DDA whereby the consumer borrow funds from
the service/product and has those funds direct deposited onto the
card instantly and repaid by pulling funds from the direct deposit
file prior to sending to the other bank account to repay the amount
withdrawn. An example of and more details on how repayment can be
accomplished is illustrated in U.S. Provisional Patent Application
Ser. No. 61/016,213 titled "Transfer Account Systems, Computer
Program Products, and Associated Methods" filed on Dec. 21, 2007
which is incorporated herein by reference in its entirety.
[0043] Additionally, along these lines, any repayment of a line
supersedes repayment of a negative balance on a card due to force
posts or settlement transactions that cause the card to go
negative. Any monies remaining after a payment is received can be
credited to the prepaid card account. If payment takes the card
balance to $0, any transactions attempted with the card can be
declined. Those transactions can be subject to any related decline
fees. Repayment of a draw, for example, should not be taken from
the principal balance on a card. That is, if a card balance is
positive prior to a draw, only when the next electronic deposit is
initiated to the card will repayment be triggered. If a draw is not
paid within the preselected time period, preferably days, e.g., 35
day timeframe, any amount owed can be taken from the principal
balance on a card.
[0044] In an embodiment of a computer-implemented method 100 of
advancing funds using a prepaid card to a customer of a retailer,
as illustrated in FIG. 1, the computer-implemented method 100
includes determining eligibility for a line of credit program from
a financial institution responsive to a consumers prior enrollment
in a payroll prepaid card program and one or more of the following:
the consumers historical direct deposit data, and data associated
with the consumer's historical behavior in the payroll card program
103. The computer-implemented method also includes enrolling the
consumer in the line of credit program through an on-line process,
the consumer having been determined enrollment being responsive to
an acceptance of terms and conditions of the line of credit program
by the consumer 105. The computer-implemented method further
includes extending an amount of available credit to the enrolled
consumer through the line of credit program defining a consumer
credit limit, the consumer credit limit being capped through
underwriting criteria to ensure that no more than a predetermined
percentage of a consumer's historic direct deposit amount is
required for minimum repayments associated with the line of credit
program 107. The computer-implemented method also includes
receiving authorization for an advance under the line of credit
program from the consumer by the computer server 307, 403 so that
the consumer authorizes all advances 109 and assessing a loan
advance fee of a predetermined percentage of the value of the
advance 111. The computer-implemented method further includes
receiving loan repayments over one or more predetermined direct
deposit periods 113 and changing the consumer credit limit 115.
[0045] The computer-implemented method can further include
notifying the consumer of changes in the consumer credit limit
through one or more of the following: e-mail, and traditional mail.
The computer-implemented method can include cancelling an advance
through a call to a customer service center by the computer server
307, 403 and suspending access to funds under the line of credit
program if one or more of the following events occur: a missed
payment, an interruption in direct deposits, a negative card
balance, and a preselected threshold number of consecutive loans
from the line of credit program.
[0046] In an embodiment of a computer-implemented method of
advancing funds using a prepaid card to a customer of a retailer,
as illustrated in FIG. 2, the computer-implemented method 200
includes determining eligibility for a line of credit program from
a financial institution by the computer server 307, 403 responsive
to a consumer's prior enrollment in a payroll prepaid card program
and one or more of the following: the consumer's historical direct
deposit data, and data associated with the consumer's historical
behavior in the payroll card program 203. The computer-implemented
method also includes extending an amount of available credit to the
consumer by the computer server 307, 403 through the line of credit
program defining a consumer credit limit, the consumer credit limit
being capped through underwriting criteria to ensure that no more
than a predetermined percentage of a consumer's historic direct
deposit amount is required for minimum repayments associated with
the line of credit program 205. The computer-implemented method
further includes receiving loan repayments over one or more
predetermined direct deposit periods 207.
[0047] Method embodiments of the present invention can
advantageously be implemented by a computer as understood by those
skilled in the art.
[0048] An embodiment of a system 300 to advance funds to a customer
of a retailer, as illustrated in FIGS. 3-7, for example, includes a
plurality of customer access interface devices 301 and a remote
computer server 307 positioned to provide communication with each
of the plurality of customer access interface devices 301, being
associated with a financial institution 305, and having memory. The
system also includes program product 308, 401, 500 stored in the
memory of the computer server so that the program product operates
to perform various instructions, such as determining eligibility
for a line of credit program from a financial institution
responsive to a consumer's prior enrollment in a payroll prepaid
card program and one or more of the following: the consumer's
historical direct deposit data, and data associated with the
consumer's historical behavior in the payroll card program. The
instructions can also include enrolling the consumer in the line of
credit program through an on-line process, the consumer having been
determined eligible, enrollment being responsive to an acceptance
of terms and conditions of the line of credit program by the
consumer. The instructions can further include extending an amount
of available credit to the enrolled consumer through the line of
credit program defining a consumer credit limit, the consumer
credit limit being capped through underwriting criteria to ensure
that no more than a predetermined percentage of a consumer's
historic direct deposit amount is required for minimum repayments
associated with the line of credit program. The instructions can
also include receiving authorization for an advance under the line
of credit program from the consumer so that the consumer authorizes
all advances, assessing a loan advance fee of a predetermined
percentage of the value of the advance, receiving loan repayments
over one or more predetermined direct deposit periods, and changing
the consumer credit limit by preselected increments responsive to a
change in the consumer's direct deposit amount.
[0049] The system can also include a second computer associated
with a customer prepaid card account 313 defining a prepaid card
processor 311. The prepaid card processor 311 is in communication
with the financial institution computer server 307 through an
electronic communications network 309. As understood by those
skilled in the art, the electronic communication network 309 can be
a global communication network like the Internet, World Wide Web,
or Web 2.0; a banking type of network; or a retail, customer or
intranet type of network.
[0050] In an embodiment of a program product 401 stored in one or
more tangible computer readable media 405 and readable by a
computer 403, as illustrated in FIG. 4, for example, the program
product 401 can operate to perform the various instructions 407
when read by the computer 403, such as determining eligibility for
a line of credit program from a financial institution responsive to
a consumer's prior enrollment in a payroll prepaid card program and
one or more of the following: the consumer's historical direct
deposit data, and data associated with the consumer's historical
behavior in the payroll card program 409. The instructions can also
include enrolling the consumer in the line of credit program
through an on-line process, the consumer having been determined
eligible, enrollment being responsive to an acceptance of terms and
conditions of the line of credit program by the consumer 411. The
instructions can further include extending an amount of available
credit to the enrolled consumer through the line of credit program
defining a consumer credit limit, the consumer credit limit being
capped through underwriting criteria to ensure that no more than a
predetermined percentage of a consumer's historical direct deposit
amount is required for minimum repayments associated with the line
of credit program 413. The instructions can include receiving
authorization for an advance under the line of credit program from
the consumer so that the consumer authorizes all advances 415,
assessing a loan advance fee of a predetermined percentage of the
value of the advance 417, receiving loan repayments over one or
more predetermined direct deposit periods 419, and changing the
consumer credit limit by preselected increments responsive to a
change in the consumer's direct deposit amount 421.
[0051] The program product can further operate to perform the
instructions of: notifying the consumer of changes in the consumer
credit limit through one or more of the following: e-mail, and
traditional mail; suspending access to funds under the line of
credit program if one or more of the following events occur: a
missed payment, an interruption in direct deposits, a negative card
balance, and a preselected threshold number of consecutive loans
from the line of credit program; and cancelling an advance through
a call to a customer service center.
[0052] Embodiments of the present invention provide, for example,
for a program product 500 associated with a bank or other financial
or lending institution implemented in modules or components, as
illustrated in FIG. 5. An enrollment interface module 501 can, for
example, can provide an on-line process for enrollment, requiring
the consumer to accept terms and conditions of the line of credit
program, including, for example, a privacy policy, and requesting
an e-mail address for statement purposes. An underwriting analyzer
component 505 of a bank program product 500 can receive
underwriting information and make the determine whether to offer a
line of credit or other product to the customer as understood by
those skilled in the art. Favorable underwriting information can
include, for example, good behavior in a prepaid card program,
direct deposit history, an account in good standing, not overdrawn,
cancelled, or default, and continued direct deposit, as understood
by those skilled in the art. In addition, the underwriting analyzer
embodiments of the present invention can determine a credit limit
responsive to a direct deposit history, as described herein and as
understood by those skilled in the arts. Also, a loan advance and
fee manager module 503 deals with extending available credit as
determined by the underwriting analyzer 505, receiving
authorization from a customer for an advance, determining whether
to advance funds, providing loans, assessing a fee of a
predetermined percentage of the loan advance amount, calculating
available credit, managing repayments, and other associated tasks
as understood by those skilled in the art. Other architectures and
organizations will be understood by those skilled in the art to be
included within the embodiments of the present invention. Program
products and computerized or computer-implemented methods can be
implemented in a variety of software and programming languages,
including without limitation hypertext markup language ("HTML"),
Java, C, C++, XML, and others as understood by those skilled in the
art.
[0053] A person having ordinary skill in the art will recognize
that various types of memory are readable by a computer such as
described herein, e.g., bank computer, computer server, financial
institution computer, prepaid card processors, or other computers
with embodiments of the present invention. Examples of computer
readable media include but are not limited to: nonvolatile,
hard-coded type media such as read only memories (ROMs), CD-ROMs,
and DVD-ROMs, or erasable, electrically programmable read only
memories (EEPROMs), recordable type media such as floppy disks,
hard disk drives, CD-R/RWs, DVD-RAMs, DVD-R/RWs, DVD+R/RWs, flash
drives, memory sticks, and other newer types of memories, and
transmission type media such as digital and analog communication
links. For example, such media can include operating instructions,
as well as instructions related to the system and the method steps
described above and can operate on a computer. It will be
understood by those skilled in the art that such media can be at
other locations instead of or in addition to the locations
described to store program products, e.g., including software,
thereon. Embodiments of a system to advance funds to a customer,
for example, can include a plurality of customer access interface
devices as illustrated and described herein and one or more remote
computer servers positioned to provide communication with each of
the plurality of customer access interface devices and being
associated with a financial institution. Each of these computer
servers, for example, can having one or more of these various types
of memory as understood by those skilled in the art.
[0054] This application is a continuation of and claims priority
and the benefit to U.S. patent application Ser. No. 12/338,712, by
Sorbe et al., titled "Computer-Implemented Methods, Program
Product, and System to Enhance Banking Terms Over Time," filed Dec.
18, 2008, which claims priority to and the benefit of: U.S.
Provisional Patent Application Ser. No. 61/016,213, by Sorbe et
al., titled "Transfer Account Systems, Computer Program Products,
and Associated Methods" filed Dec. 21, 2007; U.S. Provisional
Patent Application Ser. No. 61/052,454, by Sorbe et al., titled
"Transfer Account Systems, Computer Program Products, and Methods
to Prioritize Payments from Preselected Bank Account" filed May 12,
2008; U.S. Provisional Patent Application Ser. No. 61/029,975, by
Sorbe et al., titled "Methods To Advance Loan Proceeds On Prepaid
Cards, Associated Systems and Computer Program Products" filed on
Feb. 20, 2008; U.S. Provisional Patent Application Ser. No.
61/042,612, by Ahlers et al., titled "System, Program Product, and
Associated Methods To Autodraw for Micro-Credit Attached to a
Prepaid Card " filed on Apr. 4, 2008; U.S. Provisional Patent
Application Ser. No. 61/042,624, by Crowe et al., titled "System,
Program Product, and Method To Authorize Draw for Retailer
Optimization" filed on Apr. 4, 2008; U.S. Provisional Patent
Application Ser. No. 61/032,750, by Ahlers et al., titled "Methods,
Program Product, and System for Micro-Loan Management" filed on
Feb. 29, 2008; U.S. Provisional Patent Application Ser. No.
61/060,559, by Galit et al., titled "Methods, Program Product, and
System to Enhance Banking Terms Over Time" filed on Jun. 11, 2008;
U.S. Provisional Patent Application Ser. No. 61/082,863, by Ahlers
et al., titled "System, Program Product, and Method For Debit Card
and Checking Account Autodraw" filed on Jul. 23, 2008; U.S.
Provisional Patent Application Ser. No. 61/053,056, by Galit et
al., titled "System, Program Product, and Method For Loading a Loan
On a Pre-Paid Card" filed on May 14, 2008, all of which are each
incorporated herein by reference in their entireties. This
application also relates to U.S. patent application Ser. No.
12/338,365, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Associated Computer-Implemented
Methods" filed on the same day as this application, Dec. 18, 2008;
U.S. patent application Ser. No. 12/338,402, by Sorbe et al.,
titled "Transfer Account Systems, Computer Program. Products, and
Associated Computer-Implemented Methods" filed on the same day as
this application, Dec. 18, 2008; U.S. patent application Ser. No.
12/338,440, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Associated Computer-Implemented
Methods" filed on the same day as this application, Dec. 18, 2008;
U.S. patent application Ser. No. 12/338,584, by Sorbe et al.,
tilled "Transfer Account Systems, Computer Program Products, and
Computer-Implemented Methods to Prioritize Payments from
Preselected Bank Account" filed on the same day as this
application, Dec. 18, 2008; U.S. patent application Ser. No.
12/338,465, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Computer-Implemented Methods to
Prioritize Payments from Preselected Bank Account" filed on the
same day as this application, Dec. 18, 2008; U.S. patent
application Ser. No. 12/338,684, by Ahlers et al., titled
"Computer-Implemented Methods, Program Product, and System for
Micro-Loan Management" filed on the same day as this application,
Dec. 18, 2008, all of which are each incorporated. herein by
reference in their entireties.
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