Methods and systems for providing debt recovery partnership

• US 20020123946A1
• Filed: 03/01/2001
• Published: 09/05/2002
• Est. Priority Date: 03/01/2001
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Haworth, James, Finnegan, Robert, Mohar, Derek
• Granted Patent: US 7,685,061 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Methods and systems for collecting payments from customers having delinquent accounts are disclosed. Under a debt recovery partnership, a debt recovery service extends an offer for a debt recovery product to a customer with a delinquent account. If the offer is accepted, the debt recovery service receives an acceptance to the offer from the customer and, thereafter, pays a commission for the delinquent account to the partner. The partner ceases attempts to collect payments on the delinquent account corresponding to the accepted offer and continues attempts to collect payments on delinquent accounts not corresponding to an accepted offer.

Claims

1. A method for attempting to collect payments from customers having delinquent accounts concurrently with a partner that owns the delinquent accounts, comprising:

extending an offer for a debt recovery product to a customer with a delinquent account;

receiving an acceptance to the offer from the customer; and

paying, for each customer that accepts the offer, a commission to the partner for a corresponding delinquent account, wherein the partner ceases attempts to collect payments on each delinquent account corresponding to an accepted offer and continues attempts to collect payments on delinquent accounts not corresponding to an accepted offer.

2. The method of claim 1, wherein the debt recovery product comprises a debt recovery credit card product, and wherein the method further comprises:

booking a debt recovery credit card account for each customer that accepts the offer.

3. The method of claim 1, wherein the debt recovery product comprises a debt recovery credit card product, and wherein the method further comprises:

transferring a balance of a delinquent account corresponding to an accepted offer to the debt recovery credit card product;

sending debt recovery credit card account information to the customer;

reporting the balance transfer to the partner; and

informing at least one credit bureau that the delinquent account corresponding to an accepted offer is settled.

4. The method of claim 3, further comprising:

modifying the debt recovery credit card account information when a debt recovery service receives, after the acceptance to the offer was received by the debt recovery service, notification of a customer payment to the partner.

5. The method of claim 4, wherein the debt recovery credit card account information comprises balance information and credit limit information, and wherein said modifying further comprises:

adjusting the balance information when it is determined that the customer made a small payment to the partner before the acceptance to the offer was received by the debt recovery service.

6. The method of claim 5, wherein said modifying further comprises:

adjusting the credit limit information when it is determined that the customer made a large payment to the partner before the acceptance to the offer was received by the debt recovery service.

7. The method of claim 4, further comprising:

sending the customer updated debt recovery credit card account information.

8. The method of claim 1, wherein the delinquent account is a charged-off account.

9. The method of claim 1, wherein the debt recovery product comprises one of a debt recovery credit card product, a loan, or an agreement to buy a product or service from another company.

10. A method for synchronizing accounts in debt recovery, comprising:

receiving an update from a partner reporting a payment collected from a customer having a delinquent account;

determining whether the delinquent account has been booked as a debt recovery credit card account;

determining whether the payment was made before a debt recovery credit card application for the debt recovery credit card account was received; and

modifying debt recovery credit card account information based on a determination that the payment was made to the partner before the debt recovery credit card application was received.

11. The method of claim 10, wherein the partner ceases attempts to collect payments on delinquent accounts corresponding to accepted debt recovery product offers and continues attempts to collect payments on delinquent accounts not corresponding to accepted debt recovery product offers.

12. The method of claim 10, wherein the debt recovery credit card account information comprises balance information and credit limit information, and wherein said modifying comprises:

adjusting the balance information when it is determined that a small payment was made to the partner before the debt recovery credit card application was received.

13. The method of claim 12, wherein said modifying further comprises:

adjusting the credit limit information when it is determined that a large payment was made to the partner before the debt recovery credit card application was received.

14. The method of claim 10, further comprising:

sending the customer updated debt recovery credit card account information.

15. The method of claim 10, wherein the delinquent account is a charged-off account.

17. The method of claim 16, wherein the delinquent account is a charged-off account.

18. The method of claim 16, wherein the debt recovery product comprises a debt recovery credit card product.

19. The method of claim 16, wherein the debt recovery product comprises one of a debt recovery credit card product, a loan, or an agreement to buy a product or service from another company.

16. A method for attempting to collect payments from customers having delinquent accounts concurrently with a debt recovery service, comprising:

receiving an indication from the debt recovery service that a delinquent account balance has been transferred to a debt recovery product, the delinquent account balance corresponding to a delinquent account of a customer that accepted an offer for the debt recovery product;

ceasing attempts to collect payments from the customer that accepted the offer; and

continuing attempts to collect payments from customers that have not accepted an offer for a debt recovery product.

20. A method for attempting to collect payments from customers having delinquent accounts concurrently with a partner that owns the delinquent accounts, comprising:

establishing a partnership with a partner;

extending an offer for a debt recovery product to a customer with a delinquent account;

receiving an acceptance to the offer from the customer;

paying, for each customer that accepts the offer, a commission to the partner for a corresponding delinquent account, wherein the partner ceases attempts to collect payments on each delinquent account corresponding to an accepted offer and continues attempts to collect payments on delinquent accounts not corresponding to an accepted offer; and

updating account information using information received from the partner.

21. A system for attempting to collect payments from customers having delinquent accounts, comprising:

a first partner that owns the delinquent accounts and attempts to collect payments from the customers with the delinquent accounts; and

a debt recovery service that attempts to collect payments from the customers concurrently with the partner, the debt recovery service operable to extend an offer for a debt recovery product to each of the customers, receive an acceptance to the offer from at least one customer, and pay a commission for the delinquent account of the at least one customer to the partner,

wherein the partner ceases attempts to collect payments on the delinquent account of the at least one customer and continues attempts to collect payments on delinquent accounts not corresponding to an accepted offer.

22. The system of claim 21, further comprising:

a second partner that owns delinquent accounts and works in a contingency collection relationship with the first partner,

wherein the debt recovery service, the first partner, and the second partner work in an extended debt recovery partnership.

23. A method for attempting to collect payments from customers having delinquent accounts concurrently with a partner that owns the delinquent accounts, comprising:

sending a customer with a delinquent account an offer for a debt recovery product;

receiving an acceptance to the offer from the customer; and

purchasing, for each customer that accepts the offer, the delinquent account of the customer from the partner,

wherein the partner ceases attempts to collect payments on the purchased delinquent account and continues attempts to collect payments on non-purchased delinquent accounts.

24. A system for attempting to collect payments from customers having delinquent accounts concurrently with a partner that owns the delinquent accounts, comprising:

means for extending an offer for a debt recovery product to a customer with a delinquent account;

means for receiving an acceptance to the offer from the customer; and

means for paying, for each customer that accepts the offer, a commission to the partner for a corresponding delinquent account,

wherein the partner ceases attempts to collect payments on each delinquent account corresponding to an accepted offer and continues attempts to collect payments on delinquent accounts not corresponding to an accepted offer.

25. A system for attempting to collect payments from customers having delinquent accounts concurrently with a debt recovery service, comprising:

means for receiving an indication from the debt recovery service that a delinquent account balance has been transferred to a debt recovery product, the delinquent account balance corresponding to a delinquent account of a customer that accepted an offer for the debt recovery product;

means for ceasing attempts to collect payments from the customer that accepted the offer; and

means for continuing attempts to collect payments from customers that have not accepted an offer for a debt recovery product.

26. A system for synchronizing accounts in debt recovery, comprising:

means for receiving an update from a partner reporting a payment collected from a customer having a delinquent account;

means for determining whether the delinquent account has been booked as a debt recovery credit card account;

means for determining whether the payment was made before a debt recovery credit card application for the debt recovery credit card account was received; and

means for modifying debt recovery credit card account information based on a determination that the payment was made to the partner before the debt recovery credit card application was received.