U.S. patent application number 13/601724 was filed with the patent office on 2012-12-27 for computerized extension of credit to existing demand deposit accounts, prepaid cards and lines of credit based on expected tax refund proceeds, associated systems and computer program products.
This patent application is currently assigned to METABANK. Invention is credited to Scott H. Galit, Trent Sorbe.
Application Number | 20120330820 13/601724 |
Document ID | / |
Family ID | 42738484 |
Filed Date | 2012-12-27 |
United States Patent
Application |
20120330820 |
Kind Code |
A1 |
Galit; Scott H. ; et
al. |
December 27, 2012 |
COMPUTERIZED EXTENSION OF CREDIT TO EXISTING DEMAND DEPOSIT
ACCOUNTS, PREPAID CARDS AND LINES OF CREDIT BASED ON EXPECTED TAX
REFUND PROCEEDS, ASSOCIATED SYSTEMS AND COMPUTER PROGRAM
PRODUCTS
Abstract
Systems, computer programs encoded on non-transitory memory, and
computer-implemented methods to make available new credit or
additional credit to demand deposit accounts, prepaid cards, and
existing lines of credit of a customer based on expected tax refund
amounts. The new or additional credit being, for example, based on
a computerized estimate of the tax refund of the customer. The
existing line of credit, for example, is adjusted based on the
expected refund and/or actual tax refund determined to be
available, which can serve as an additional source of repayment for
the line of credit. One or more of several adjustments may then be
made to an existing line of credit: the line of credit may be
increased; fees reduced; or the terms of payment adjusted.
Inventors: |
Galit; Scott H.; (New York,
NY) ; Sorbe; Trent; (Brookings, SD) |
Assignee: |
METABANK
Sioux Falls
SD
|
Family ID: |
42738484 |
Appl. No.: |
13/601724 |
Filed: |
August 31, 2012 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13474519 |
May 17, 2012 |
8296227 |
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13601724 |
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13329748 |
Dec 19, 2011 |
8214286 |
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13474519 |
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12407320 |
Mar 19, 2009 |
8090649 |
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13329748 |
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Current U.S.
Class: |
705/38 |
Current CPC
Class: |
G06Q 40/02 20130101;
G06Q 40/123 20131203; G06Q 40/025 20130101 |
Class at
Publication: |
705/38 |
International
Class: |
G06Q 40/02 20120101
G06Q040/02 |
Claims
1. A computer-implemented method of adjusting an existing line of
credit account, the method comprising of: determining, by a
computer associated with a credit provider and configured to
control a plurality of existing line of credit accounts, whether a
consumer has one or more of the plurality of existing line of
credit accounts, each of the plurality of existing line of credit
accounts adapted to be drawn in at least one of a plurality of
separate predetermined loan increments, each of the plurality of
separate predetermined loan increments being equal in value;
determining, by the computer, an estimated tax refund for the
consumer responsive to the consumer having one or more of the
plurality of existing line of credit accounts; and adjusting, by
the computer, loan fee terms for the plurality of separate
predetermined loan increments responsive to the estimated tax
refund so that a total value of a loan advance fee equals a
predetermined loan advance fee multiplied by a number of separate
predetermined loan increments drawn by the consumer.
2. A computer-implemented method as defined in claim 1, wherein the
adjusting includes reducing the predetermined loan advance fee from
a first amount to a second amount.
3. A computer-implemented method as defined in claim 1, wherein the
adjusting includes extending a time period for repayment of at
least a portion of a line of credit balance of the one or more of
the plurality of existing line of credit accounts.
4. A computer-implemented method as defined in claim 1, wherein the
method further comprises the step of: increasing, by the computer,
a total credit limit of the one or more of the plurality of
existing line of credit accounts by a number of separate
predetermined loan increments based on the estimated tax refund to
thereby increase existing available credit for the consumer, the
increased available credit adapted to be drawn in at least one of
the plurality of separate predetermined loan increments.
5. A computer-implemented method as defined in claim 1, wherein the
one or more of the plurality of existing line of credit accounts
are associated with one or more of a plurality of prepaid card
accounts associated with the consumer; and the method further
comprising the step of: loading, by the computer, one or more of
the plurality of prepaid card accounts with draws from the one or
more of the plurality of existing line of credit accounts in at
least one of the plurality of separate predetermined loan
increments.
6. Non-transitory memory encoded with computer program for
adjusting an existing line of credit account, the computer program
comprising a set of instructions that, when executed by a computer,
causes the computer to perform the operations of: determining, by a
computer associated with a credit provider and configured to
control a plurality of existing line of credit accounts, whether a
consumer has one or more of a plurality of existing line of credit
accounts, each of the plurality of existing line of credit accounts
adapted to be drawn in at least one of a plurality of separate
predetermined loan increments, each of the plurality of separate
predetermined loan increments being equal in value; determining, by
the computer, an estimated tax refund for the consumer responsive
to the consumer having one or more of the plurality of existing
line of credit accounts; and adjusting, by the computer, loan fee
terms for the plurality of separate predetermined loan increments
responsive to the estimated tax refund so that a total value of a
loan advance fee equals a predetermined loan advance fee multiplied
by a number of separate predetermined loan increments drawn by the
consumer.
7. Non-transitory memory as defined in claim 6, wherein the
adjusting includes reducing the predetermined loan advance fee from
a first amount to a second amount.
8. Non-transitory memory as defined in claim 6, wherein the
adjusting includes extending a time period for repayment of at
least a portion of a line of credit balance of the one or more of
the plurality of existing line of credit accounts.
9. Non-transitory memory as defined in claim 6, wherein the method
further comprises the step of: increasing, by the computer, a total
credit limit of the one or more of the plurality of existing line
of credit accounts by a number of separate predetermined loan
increments based on the estimated tax refund to thereby increase
existing available credit for the consumer, the increased available
credit adapted to be drawn in at least one of the plurality of
separate predetermined loan increments.
10. Non-transitory memory as defined in claim 6, wherein the method
further comprises the step of: repaying at least a portion of a
line of credit balance of one or more of the plurality of existing
line of credit accounts responsive to receiving a tax refund
associated with the consumer.
11. Non-transitory memory as defined in claim 9, wherein the method
further comprises the step of: increasing, by the computer, the
total credit limit of the one or more of the plurality of existing
line of credit accounts by a second number of separate
predetermined loan increments responsive a filing of an actual tax
refund to thereby increase existing available credit for the
consumer by a second amount, the second increased available credit
adapted to be drawn in at least one of the plurality of separate
predetermined loan increments.
12. Non-transitory memory as defined in claim 6, wherein the method
further comprises the step of: allocating a portion of the
estimated tax refund to repay at least a portion of a line of
credit balance of one or more of the plurality of existing line of
credit accounts; and wherein the one or more of the plurality of
existing line of credit accounts are associated with one or more of
a plurality of prepaid card accounts associated with the
consumer.
13. Non-transitory memory as defined in claim 6, wherein the one or
more of the plurality of existing line of credit accounts are
associated with one or more of a plurality of prepaid card accounts
associated with the consumer; and the method further comprising the
step of: loading, by the computer, one or more of the plurality of
prepaid card accounts with draws from the one or more of the
plurality of existing line of credit accounts in at least one of
the plurality of separate predetermined loan increments.
Description
BACKGROUND
[0001] 1. Related Applications
[0002] This application is a divisional of and claims the benefit
and priority to U.S. patent application Ser. No. 13/474,519, filed
on May 17, 2012, titled "Computerized Extension of Credit to
Existing Demand Deposit Accounts, Prepaid Cards, and Lines of
Credit Based on Expected Tax Refund Proceeds, Associated Systems
and Computer Program Products," which is a divisional of and claims
the benefit and priority to U.S. patent application Ser. No.
13/329,748, filed on Dec. 19, 2011, titled "Computerized Extension
of Credit to Existing Demand Deposit Accounts, Prepaid Cards, and
Lines of Credit Based on Expected Tax Refund Proceeds, Associated
Systems and Computer Program Products," which is a continuation of
and claims the benefit and priority to U.S. patent application Ser.
No. 12/407,320, titled "Computerized Extension of Credit To
Existing Demand Deposit Accounts, Prepaid Cards And Lines of Credit
Based on Expected Tax Refund Proceeds, Associated Systems And
Computer Program Products," filed on Mar. 19, 2009. Each of these
previous applications is incorporated herein by reference in its
entirety.
[0003] 2. Field of Invention
[0004] The present invention relates generally to the financial
service and banking industries, and, more particularly, to systems,
computer program products, and associated methods to utilize the
expectation of tax refunds to extend credit to existing demand
deposit accounts, prepaid cards and lines of credit associated
therewith.
[0005] 3. Background
[0006] Millions of prepaid cards are issued each year in the United
States. Many of the customers of prepaid cards rely primarily on
cash and a prepaid card account for their personal finances; these
customers often do not have a traditional checking, savings, or
other bank deposit account, and they consequently do not write or
otherwise use bank checks.
[0007] Short-term financing is at present a $20 billion plus per
year industry. Considerable portions of this lending take the form
of lines of credit, the proceeds of which are made available to the
customers through demand deposit accounts and prepaid cards. It is
believed by industry experts that an appropriate manner of offering
micro-lending is through a federal bank.
SUMMARY OF INVENTION
[0008] Applicants have recognized a need for enhanced lending
options, bank products, demand deposit accounts, and prepaid card
accounts. The present invention provides computer systems, computer
program products and computer-implemented methods for underwriting
and extending credit based on expected tax refund proceeds to
demand deposit accounts, prepaid cards and lines of credit
associated therewith of customers and providing enhanced lending
options for both banks and their customers. In view of the
foregoing, Applicants have recognized a need for enhanced lending
options, bank products, demand deposit accounts and prepaid card
products associated therewith.
[0009] For example, Applicants have recognized a growing demand and
need within the banking industry to provide lines of credit to
customers or consumers who generally have had limited financial
resource alternatives in their times of greatest need. According to
the present invention, computer systems, computer program products,
and computer-implemented methods are provided for providing a line
of credit or enhancing an existing line of credit. The line of
credit might operate as a micro-lending open line of credit product
provided by a bank. The line of credit adjustment features of the
present invention are made available through communications media,
such as through a computer network, a global communication network
such as the Internet, or through a stand alone computer system
available through a lending source. The present invention is also
provided as a computer program product stored on a tangible
computer readable memory or storage device.
[0010] The adjustment of an existing line of credit according to
the present invention provides a meaningful enhancement to
consumers by offering a service that is commonly used and important
to consumers today, e.g., advance access to a future electronic
deposit based on an authorized portion or percentage of an amount
of funds owed to the customer as a tax refund, typically that from
an income tax return filed on behalf of the customer through by an
income tax return preparation service. Qualified borrowers with
existing lines of credit available may have their line of credit
enhanced or adjusted. The adjustment may be the customer having the
line of credit increased, repayment terms extended or borrowing
costs improved. In some cases, the borrower will make draws in
approved increments, allowing the borrower to only utilize the
amount of credit needed, rather than a loan where the full amount
is borrowed in one transaction. Authorized funds can be made
available immediately for use by the borrower.
[0011] Some of the beneficial features of this line of credit
product and line of credit enhancement are providing various types
of assistance to consumers with the management of their finances by
providing a short-term borrowing alternative that is more cost
effective than other expensive financial service products such as
payday loans. The line of credit product, however, can still be
controlled, monitored, and managed by the bank or financing
institution. This embodiment of a line of credit product can be
less costly than other alternatives. This is a significant benefit
from the perspective of the consumer, regulators, and lending
institutions.
[0012] The present invention thus provides fund distribution
opportunities to banks and to bank customers. For example,
underwriting criteria can be based upon the prepaid card (or other
types of banking cards) transaction history and direct deposit
history and is often a requirement for consumer qualification for a
line of credit.
[0013] The present invention may take several forms, including a
computer program product stored on a tangible computer memory media
that is readable by a computer, for advancing credit proceeds to a
prepaid card account, the computer program product comprising a set
of instructions that, when executed by the computer, cause the
computer to perform various operations. The operations include
forming a computerized estimate of a tax refund available from a
tax return of the customer, information that would eventually be
used on a future tax return or based on data from other sources
(for example a credit bureau); determining in the computer a
portion of the computerized estimate of the tax refund available as
the line of credit; and adjusting in the computer the line of
credit based on the determined funding proceeds expected to be
available as a refund to ultimately repay the line of credit.
[0014] The present invention may also take the form of a computer
implemented method of adjusting a line of credit available to
customer having a demand deposit account or prepaid card. According
to the computer-implemented method, a computerized estimate of a
tax refund is formed based upon information from a tax return,
information that would eventually be used on a future tax return or
from other sources (for example a credit bureau); a portion of the
computerized estimate of the tax refund available as proceeds for
funding the line of credit is determined in the computer; and the
line of credit based on the determined funding proceeds available
for the line of credit is adjusted.
[0015] The present invention may also take the form of issuing the
consumer a new prepaid card, demand deposit account or credit card
with a line of credit attached. The size of the line of credit is
set based on underwriting criteria, which include the expected tax
refund of the consumer. Such credit can then be accessed by the
customer in increments (e.g., $20 draws) so only amounts that the
customer needs to use are accessed, contrasted with a loan where
all proceeds are loaned immediately to the borrower. By the system
assessing a fee based on the amount drawn, the borrower only pays
for what is used rather than the entire amount of credit offered or
made available by the lender. In such fashion, the consumer is able
to save money by not being forced to pay unnecessary fees by
borrowing more than is needed.
[0016] The present invention may also take the form of a computer
system for adjusting a line of credit available to customer having
a demand deposit account. According to the computer-implemented
method, a computerized estimate of a tax refund available from a
tax return of the customer is formed in the computer system; a
portion of the computerized estimate of the tax refund available as
proceeds for funding the line of credit is determined in the
computer system and the line of credit based on the determined
funding proceeds available for the line of credit is adjusted in
the computer.
BRIEF DESCRIPTION OF DRAWINGS
[0017] 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.
[0018] FIG. 1 is a schematic diagram of computers interconnected
through an electronics communication network and involved in
preparation and submission of tax refunds.
[0019] FIG. 2 is a schematic diagram of a computer system according
to the present invention for adjusting a line of credit of a
customer having a demand deposit account.
[0020] FIG. 3 is a schematic diagram of a computer-implemented
sequence of steps performed in a computer according to the present
invention.
[0021] FIG. 4 is a schematic diagram of a computer program product
stored in a computer readable medium according to the present
invention.
DETAILED DESCRIPTION OF INVENTION
[0022] 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.
[0023] According to the present invention, tax refund proceeds are
applied or otherwise made available to demand deposit accounts,
prepaid cards and associated lines of credit of a customer based on
tax refund amounts expected to be available. A computerized
estimate of the tax refund available from a tax return of the
customer is formed. A portion of the computerized estimate of the
tax refund which can be available as underwriting criteria for the
line of credit is then determined. The line of credit is then
adjusted, based on the refund expected to be available, in the
stored data reflecting the line of credit. One or more of several
adjustments may then be made: the line of credit may be increased;
the borrowing costs modified; or the terms of payment adjusted. The
invention may be implemented as a computerized process, a computer
system or a computer program product.
[0024] More specifically, tax refund proceeds for a customer or
consumer are entered and stored in machine-readable media on a card
or other data storage mechanism. The proceeds are thus made
available in the form of demand deposit accounts, prepaid cards and
associated lines of credit to a customer based on tax refund
amounts expected to be available. A computerized estimate of the
tax refund available from a tax return of the customer is formed
and appropriate records made by a tax return preparer or service
provider. A portion of the computerized estimate of the tax refund
which can be available as underwriting criteria for the line of
credit is then determined in a computer of a credit facility
provider, such as a bank, savings institution or the like. The line
of credit data stored in a card or other storage medium is then
adjusted based on the refund expected to be available, or some
other form of adjustment made in the customer's records.
[0025] Referring to FIG. 1, a tax return preparer or service
provider is shown schematically at 20 having a computer with data
processing capability and appropriate links and interfaces for data
communication and access through an electronic communications
network 22, such as the Internet, to a computer system or data
processor at a tax authority 24. The tax authority 24 typically is
the United States Internal Revenue Service, although it should be
understood that it may according to the present invention be some
other tax authority or governmental entity. The tax return provider
20 may be, for example, one of the large entities such as Jackson
Hewitt or H & R Block, or the like. The tax return preparation
authority may also be some other entity such as an accounting firm,
tax return preparer, accountant, individual or other authorized tax
preparation service or group, as well.
[0026] According to the present invention, a credit provider 26
such as a bank or other institution having a computer or data
processor with the capability of advancing credit by adjusting the
data contents of the computer reflecting available funding to a
customer, whether an individual or other entity. The credit
advanced is in the form of a credit facility, such as a line of
credit, loan, credit card or overdraft protection. The computer at
the credit provider 26 interacts with the computers at the tax
authority 24 and/or at the tax return preparation service 20 via
suitable links and interfaces through the electronic communications
network 24, as will be set forth. The credit provider 26 may be a
bank or other lending institution, or it may be an underwriter
operating in conjunction with a lending institution. The computer
of credit provider 26 operates in a processing sequence which
permits a customer or consumer to have access to funds or proceeds
available through a demand deposit account or prepaid card
processor or authority 28. The card processor 28 may take the form
of an automated teller machine (ATM) or other telecommunications
device or mechanism in electronic communication over the electronic
communications network 22 with the computer of the credit system
provider 26. The card processor 28 allows the consumer or customer
to adjust the data contents of a credit card account 30. The credit
card account 30 may take the form of a debit card, check card, bank
card or other machine-readable medium or storage device which has
appropriate data storage and memory functionality and capability
reflecting the status of funds or proceeds to the customer or
consumer have authorized to use and access that particular card
account 30 and make purchases or payments electronically.
[0027] The credit provider 26 provides access to the electronic
records reflecting a credit facility which is formed according to
the present invention based on a determination of expected tax
refund proceeds to be eventually available to the consumer or
customer based on appropriate adjustments made in the status of the
customer card account after tax return processing by the tax
authority 24. All, some or individual increments of such determined
portions of expected tax return proceeds are applied or otherwise
made available to demand deposit accounts, prepaid cards and
associated lines of credit of the customer, as will be set
forth.
[0028] The tax refund amounts expected may be calculated or
determined in several ways according to the present invention. For
example, the expected proceeds may be based on amounts indicated as
a result of tax returns, typically income tax returns, prepared for
the customer by the tax return preparer 20. The amounts may be
those indicated available from tax-related information other than
an actual tax return. For example, the tax-related information may
be available as a result of calculations based on a tax payer's
actual income or wage records, pay stubs or the like.
Alternatively, as will be set forth, the amounts may be based on
tax-related information may be available from a previous year's tax
return, which might also be adjusted for verifiable changes in
income or deductions status.
[0029] Referring now to FIG. 3, a schematic diagram P of a
computer-implemented process according to the present invention is
set forth. As will be set forth, in the process P, a computer
implemented method or process is performed in the computer of the
credit system provider 26 to adjust a credit facility available to
a customer having a demand deposit account or prepaid card. As
indicated at step 50, an initial step is to verify in the
electronic computer records of the credit provider 26 that the
consumer has an existing loan, line of credit, overdraft line,
credit card or other credit facility. Next, as an indicated at step
52, it is determined from the contents of the records of
computations in the computer at the tax preparer 20 and the
computer records of the tax authority 24 whether the consumer is
indicated to either qualify or not qualify for a tax refund.
[0030] If it is indicated by the tax preparer 20 and tax authority
24 that a tax refund is in fact due to the customer as a result of
step 52, and that the consumer is one who also has an existing
credit facility as indicated during step 50, a determination is
then made as indicated at step 54. During step 54, a determination
is made of the amount of tax refund calculated to be owed the
taxpayer consumer. The refund amount calculation may be performed
using conventional computerized tax calculation methods, either by
working with a tax preparation service, tax software provider, or
comparable service as indicated at 24, or by direct filing by a
consumer who otherwise demonstrates qualification for tax
refund.
[0031] Thereafter, a portion of the computerized estimate of the
expected tax refund is made available to the consumer as additional
and/or modified terms on the line of credit is determined during
step 56. The decision and amount are based on a set of underwriting
criteria selected by the credit provider 26, typically also
including a confirmation or other indication or verifiable
expectation that the consumer is in fact to receive a tax refund.
The expected tax refund information can be supplemented by other
information, such as more traditional underwriting information
available from a credit bureau or the like. Supplemental
information of this or other types enables a lender to make a more
comprehensive underwriting assessment. From the amount determined
available during step 54, an amount of borrowing capacity is
allocated in the computer during step 56 to be made available to
the consumer's credit facility and the data contents stored and
accessible in storage media of customer card account 30. Next,
during step 58 the consumer's credit facility and the data contents
stored and accessible in storage media of the customer card account
are adjusted based on the expected refund proceeds that will be
available to repay the line of credit as determined during step
56.
[0032] According to the present invention, the verifiable
indication or expectation of tax refund is applied during step 58
as underwriting criteria to adjust a credit facility of the
consumer, whether an existing loan, line of credit, overdraft line,
credit card or the like stored and accessible in storage media of a
customer card account. Supplemental information of the type
described above may be used at this time. Adjustment of the credit
facility may take several forms according to the present invention.
The credit adjustment may be as credit attached to one or more of
several consumer accounts, much as a demand deposit, prepaid card,
direct deposition account, credit card, or the like. Other examples
of adjustments include improving the terms of the credit,
increasing the amount of credit available, reducing the fees
associated with the credit, extending repayment terms to make
repayment upon receipt of the tax refund rather than wages, or
other known, conventional forms of credit adjustment.
[0033] The present invention also includes extending credit to a
consumer on an ongoing basis based on the expectation of tax
refunds. The existence of an expected refund in the spring (January
through April) can allow an underwriter to extend credit to such
consumer any time throughout the year, providing for repayment when
a tax refund is received, possibly also including other repayment
options. Such repayment can free up additional credit again,
allowing the lender to provide year round access to such
credit.
[0034] The present invention also includes computerized extension
of credit in appropriate situations when a consumer has yet to
timely file a tax return, but is able to provide satisfactory
records to indicate a refund is likely. Such evidence could
include, for example, records of past refunds, pay stub
information, pay records withholding tax records and the like.
[0035] The present invention may also be made available in
situations where there are multiple adjustments to the same
existing account or line of credit at different points in time. For
example, there may be initial adjustments made to the existing line
of credit based on expected tax refund as determined by tax-related
information that has yet to be filed. Subsequently, there may be
further adjusting of the existing line of credit based on an
expected tax refund once the actual tax return is prepared, the tax
refund calculated and the tax return filed with the tax
authority.
[0036] As an illustrative example of the present invention,
consider a consumer who has an existing line of credit that allows
the borrowing of up to $500 in increments of $20, (with an
authorized fee of $2.50 for each increment borrowed) that is to be
repaid on the next demand deposit. In this example of the present
invention, the consumer visits (or contacts via phone or web) an
authorized tax preparation service, such as indicated at 20 (FIG.
1). Upon review of records of the customer/consumer it is
determined that the customer is likely to qualify for a tax refund
of $3,000 even though a tax return has not yet been prepared.
[0037] As a result, the existing line of credit is extended to
allow the customer to borrow up to an additional $1,000, and pay an
appropriate fee (for example $1.50 for each $20 borrowed). The
consumer can then have the additional borrowed amount repaid only
once a tax refund is received. The consumer is provided additional
credit on an existing credit product, while providing modified
terms. Such additional credit can be accessible via the same
methods as the existing credit, so if the customer was accessing
credit via an overdraft line on a checking account, the additional
credit is made available to be accessed through the same checking
account.
[0038] As another example, consider a consumer who has an existing
line of credit that allows the borrowing of up to $500 in
increments of $20, again for an example authorized fee of $2.50 per
$20 borrowed, that is to be repaid on the next demand deposit.
After the consumer has a tax return prepared and filed, it can be
determined that a calculated tax refund on the return sent to the
Internal Revenue Service or IRS is $3,000. There are conventional
financial methods, known as Refund Anticipation Loans, which may be
available to some consumers. However these involve taking out a new
loan on new terms, which are typically expensive. As an
alternative, the present invention enables the consumer to have
access to an additional $3,000 of credit available through that
consumer's existing credit facility. That amount may be borrowed in
small, say $20 increments at an appropriate fee, for example of $1
for each $20 borrowed. Further, any borrowed amount is to be repaid
upon receipt of tax refund from the IRS. In this way, the consumer
enjoys an expansion of an existing credit facility, while only
borrowing what is needed from the credit line and only paying for
the amount actually borrowed.
[0039] As another alternative, a consumer who is not yet a
customer, but demonstrates that a tax refund is likely, may be
provided with a line of credit that is accessible through a demand
deposit account, prepaid card or credit card. The line of credit
can include terms that allow the customer to access credit and not
repay such credit until a tax refund is received. The present
invention makes the credit available in increments the consumer can
choose, rather than as a loan. In such fashion, the consumer
borrows only as much as is required and only pays fees on the
amounts borrowed.
[0040] As has been discussed, the present invention also provides
for additional credit which can be granted as either a modification
to an existing credit line (such as having fees reduced, having
line amount temporarily increased, or both); or as a supplement to
an existing credit line; or as adjustment of fees due or repayment
terms.
[0041] Referring to FIG. 2, a computer system or data processing
machine 60 according to the present invention is illustrated
schematically. The computer or computer system 60 adjusts the
credit facility, whether line of credit, loan, overdraft line or
the like, available to a customer having a demand deposit account
or prepaid card 28, through customer card account 30 or otherwise
accessible to the customer. The computer system 60 includes an
input/output unit 62 for transferring information or data, as well
as commands to the computer 60 from an operator. The input/output
unit also receives data and information furnished the computer 60
from other authorized sources over the electronic communications
network 22.
[0042] The computer system 60 also includes a processor 64 for
responding to commands from an operator or generated internally
within the processor and otherwise operating and controlling
operation of the computer. The computer system 60 additionally
includes a memory 66 conventional operating software and
instructions for general purpose operation of the computer system
60 by the processor 64. According to the present invention, the
memory 66 has stored therein a computer program product, stored on
a tangible computer memory media, operable on the processor 64. The
computer system 60 also includes, as is conventional, a display
68.
[0043] The computer program product 70, as illustrated in FIG. 4,
is typically associated with the computer system 60, stored on a
tangible computer memory media 66, and operable by the processor 64
on the computer 60. The computer program product 70 takes the form
of a set of instructions 80 that, when executed by the computer 60,
cause the computer to perform various operations, including the
processing sequence of the present invention as described above
with regard to FIG. 3.
[0044] The computer program product illustrated in FIG. 4 is in the
form of a set of instructions that, when executed by the processor
64, causes the computer 60 to adjust the credit facility available
to the customer having the demand deposit account or prepaid card
by performing the operations of the process of the present
invention described above. The set of instructions according to the
present invention, as stored in a suitable machine readable code in
a tangible computer memory media, provides a computer program
product 70 as shown schematically in FIG. 4.
[0045] As indicated in FIG. 4, the computer program product 70
includes code indicated schematically at 80 for determining if the
consumer has an existing credit facility, such as a loan, line of
credit, credit card or overdraft line. The computer program product
70 further includes code indicated schematically at 82 for a
determination or confirmation that the consumer qualifies for a tax
refund, as well as code indicated at 84 for calculation or
determination of the estimated amount of tax refund available. The
computer program product 70 also includes code indicated
schematically at 86 for allocation of a determined portion
available as proceeds based on underwriting criteria, as described
above. The computer program product 70 further includes code
indicated schematically at 88 for adjusting in the computer data
base or memory and other financial records and documents the
existing credit facility in the agreed one or more types of
adjustments described above.
[0046] The tax preparation provider 20 and credit facility 26 are
described and illustrated in FIG. 1 as distinct and separate
facilities or entities. Further these facilities or entities may be
located at the same or a different physical location. It should be
understood, however, that the tax preparation provider 20 and
credit facility 26 may be the same entity or related entities and
that the computer system 60 may be programmed to include either or
both of the tax return preparation/processing capabilities of the
tax return provider 20 and the credit adjustment authorization
capabilities of the credit institution 26. Thus, either or both of
tax preparation and credit granting/underwriting services may be
performed "in-house" at a single location or institution according
to the present invention.
[0047] It should be understood that various types of computer
readable media are available and adapted for storage of the
computer program product 70 according to the present invention.
Such forms of computer readable media include but are not limited
to tangible storage media, such as 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; as well as 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 should also be understood
that such media can be at other locations instead of or in addition
to the locations described above to store program products, e.g.,
including software, thereon.
[0048] Many modifications and other embodiments of the invention
will come to the mind of one skilled in the art having the benefit
of the teachings presented in the foregoing descriptions and the
associated drawings. Therefore, it is to be understood that the
invention is not to be limited to the illustrated embodiments
disclosed, and that modifications and other embodiments are
intended to be included within the scope of the appended
claims.
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