Method and system for debt recovery

• US 20060080236A1
• Filed: 09/07/2004
• Published: 04/13/2006
• Est. Priority Date: 09/11/2003
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Knishinsky, Oren, Reynolds, Anthony P., Magnuson, John F., Haworth, James A., Kobayashi, Sow A., Welker, Daniel J.
• Granted Patent: US 7,756,789 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

According to one embodiment of the invention, a method of debt recovery is provided. The method includes providing a device to a consumer owing a debt to a creditor. The device has a utility that becomes available to the consumer after being activated by the creditor. The method also includes indicating to the consumer that the utility of the device will be activated if the consumer contacts the creditor.

Claims

1. A method for recovering debt from a consumer, comprising:

making a stored-value card available to a consumer, the stored-value card having an associated activation protocol;

activating the stored-value card in response to contact and an activation request from the consumer; and

providing a debt repayment plan to the consumer in response to the contact and activation request from the consumer.

2. The method of claim 1, wherein the debt repayment plan comprises transferring money to an account associated with the stored-value card when the consumer repays at least a portion of the debt.

3. The method of claim 2, wherein the stored-value card has an initial balance.

4. The method of claim 2, wherein the stored-value card has an initial balance when made available to the consumer.

5. The method of claim 2, wherein the stored-value card has an initial balance when the consumer agrees to the debt repayment plan.

6. The method of claim 2, wherein the stored-value card has an initial balance when the consumer makes a payment according to the debt repayment plan.

7. The method of claim 1, wherein the stored-value card is a debit card, the debit card operable to deduct an amount of purchase from funds existing in the account.

8. The method of claim 7, wherein an amount may be deducted from the debit card to repay debt according to the debt repayment plan.

9. The method of claim 1, wherein the activation protocol comprises information provided with the stored-value card, the activation protocol containing a phone number the consumer must call to activate the account.

10. The method of claim 1, the stored-value card operable to expire within a predetermined time.

11. The method of claim 2, wherein the amount of money that is transferred to the account when the consumer repays at least a portion of the outstanding debt comprises a percentage of the at least a portion of the outstanding debt repaid by the consumer.

12. The method of claim 1, wherein the stored-value card is operable to enable the consumer to make purchases from a plurality of vendors.

13. The method of claim 3, wherein the initial balance in the stored-value card account is determined by the amount of the consumer'"'"'s debt and transferred to an account associated with the stored-value card when the consumer repays at least a portion of the debt.

14. The method of claim 3, wherein the initial balance is transferred to the stored-value card by transferring money to an account associated with the stored-value card after the consumer agrees to the debt repayment plan.

15. The method of claim 13, wherein the initial balance is transferred to the stored-value card account after the consumer makes at least one payment under the debt repayment plan.

16. The method of claim 1, wherein the stored-value card is operable to withdraw funds from automated teller machines.

17. The method of claim 1, wherein the stored-value card is a prepaid phone card.

18. The method of claim 1, wherein the stored-value card is a gift card issued by a merchant.

19. A method for recovering debt from a consumer, comprising:

making a gift card with an initial balance available to a consumer, the gift card having an associated activation protocol;

activating the gift card in response to contact and an activation request from the consumer; and

providing a debt repayment plan to the consumer in response to the contact and activation request from the consumer.

20. The method of claim 19, wherein the gift card operable to make purchases at a vendor that accepts credit cards for payment.

21. The method of claim 19, further comprising the consumer agreeing to the debt repayment plan.

22. The method of claim 21, further comprising:

establishing a consumer account corresponding to the debt repayment plan;

the consumer making at least one payment according to the debt repayment plan; and

making a stored-value card available to the consumer, the stored-value card corresponding to the consumer account.

23. The method of claim 22, wherein the stored-value card has an initial balance.

24. The method of claim 23, wherein the initial balance is determined by the amount of the at least one payment.

25. The method of claim 22, wherein the stored-value card is affiliated with a major credit card company.

26. The method of claim 22, wherein the stored-value card is a debit card operable to deduct funds from the consumer account when the consumer makes a purchase.

27. The method of claim 22, wherein the stored-value card is a debit card operable to deduct funds from the consumer account when the consumer withdraws funds from an automatic teller machine.

28. The method of claim 22, wherein funds may be deducted from the debit card to repay any debt carried in the account.

29. The method of claim 21, wherein at least one additional gift card is made available to the consumer when the consumer makes at least one payment according to the debt repayment plan.

30. The method of claim 29, wherein the at least one additional gift card has a stored-value equal to a percentage of the amount of the at least one payment.

31. The method of claim 19, wherein the activation protocol is comprised of a sticker removably affixed to the gift card.

32. The method of claim 19, wherein the initial balance on the gift card is determined by the amount of the outstanding debt.

33. The method of claim 19, wherein the gift card is a prepaid phone card.

34. A debt recovery system comprising:

a profile management module operable to evaluate a credit account for a consumer to determine debt recovery risk for the account and provide a stored-value card to the consumer;

an incentive management module operable to generate a debt recovery plan to the account, the debt recovery plan comprising at least one debt recovery incentive; and

an account management module operable to apply the debt recovery incentive to the account upon receiving at least one payment from the consumer.

35. The debt recovery system of claim 34, further comprising a data management system operable to process account information.

36. The debt recovery system of claim 35, further comprising a database operable to store account information processed by the data management system.

37. The debt recovery system of claim 35, wherein the stored-value card corresponds to the account evaluated by the risk management module, the stored-value card comprising an initial balance and an activation protocol.

38. The debt recovery system of claim 37, wherein the data management system is operable to accept communication from a consumer through a communications network.

39. The debt recovery system of claim 38, wherein the communications network is the Internet.

40. The debt recovery system of claim 38, wherein the communications network is a Wide Area Network.

41. The debt recovery system of claim 38, wherein the communications network is a telephone network.

42. The debt recovery system of claim 38, wherein the communications network is a Local Area Network.

43. the debt recovery system of claim 38, wherein the consumer establishes communication with the data management system by following the activation protocol.

44. The debt recovery system of claim 37, wherein the stored-value card is a gift card, the gift card operable to make purchases from a merchant and having an initial balance.

45. The debt recovery system of claim 37, wherein the stored-value card is a debit card, the debit card operable to make purchases from a merchant and having an initial balance.

46. The debt recovery system of claim 37, wherein the stored-value card is a debit card, the debit card operable to allow the consumer to withdraw funds from the account through an automated teller machine.

47. The debt recovery system of claim 34, wherein the account management module is further operable to apply payment from the consumer to the account according to the debt recovery plan.

48. The debt recovery system of claim 34, wherein the debt recovery incentive comprises disbursing funds to the account upon receiving at least one payment from the consumer according to the debt recovery plan.

49. The debt recovery system of claim 34, wherein the debt recovery incentive comprises disbursing a gift card having an initial balance to the consumer upon receiving at least one payment from the consumer according to the debt recovery plan.

50. A stored-value card comprising:

a card operable to affect transactions for a consumer, the card corresponding to an activation protocol and having an initial value;

an account, the card corresponding to the account; and

an incentive system, the incentive system corresponding to a debt repayment plan and operable to distribute an incentive to the consumer when the consumer pays money into the account.

51. The stored-value card of claim 50, further comprising an activation protocol associated with the card, the activation protocol operable to allow the consumer to establish contact with a card provider.

52. The stored-value card of claim 50, wherein the stored-value card is re-loadable with cash value.

53. The stored-value card of claim 52, wherein the cash value is disbursed to the account associated with the stored-value card.

54. The stored-value card of claim 50, wherein the stored-value card is a gift card operable to make purchases from a merchant.

55. The stored-value card of claim 50, wherein the stored-value card is a debit card operable to with draw cash from an automated teller machine.

56. The stored-value card of claim 50, wherein the stored-value card is a credit card, the credit card operable to make purchases from a merchant.

57. The stored-value card of claim 55, wherein the debit card is operable to make purchases from a merchant.

58. The stored-value card of claim 55, wherein funds may be deducted from the debit card to repay any balance carried in the account.

59. A method of debt recovery, comprising:

providing a device to a consumer owing a debt to a creditor, the device having a utility that becomes available to the consumer after being activated by the creditor; and

indicating to the consumer that the utility of the device will be activated if the consumer contacts the creditor.

60. The method of claim 59, wherein the device comprises a stored-value card and the utility comprises purchasing power represented by a monetary amount.

61. The method of claim 59, wherein the device comprises a gift card issued by a merchant and the utility comprises purchasing power with the merchant.

62. The method of claim 59, wherein the device comprises a mobile phone and the utility comprises an amount of time that the mobile phone is operable to be used to make one or more calls.

63. The method of claim 59, wherein the device comprises a calling card and the utility comprises an amount of time available to the consumer to use the communications service provided at least partially by a communications company.

64. The method of claim 59, and further comprising activating the utility of the device if the consumer initiates a communication session with the creditor.

65. The method of claim 59, and further comprising:

participating in a communication session initiated by the consumer;

offering a plan for the consumer to reduce at least a portion of the debt; and

activating the utility of the device.

66. The method of claim 59, and further comprising:

participating in a communication session initiated by the consumer;

offering a plan to reduce the debt; and

activating the utility of the device, the utility having a predetermined limit and an expiration time.

67. The method of claim 59, and further comprising:

participating in a communication session initiated by the consumer;

offering a plan to reduce the debt, the plan including an offer to provide the consumer with an incentive for reducing at least a portion of the debt;

activating the utility of the device;

determining whether the consumer at least partially reduced the debt; and

providing the incentive to the consumer if the consumer at least partially reduced the debt.

68. The method of claim 59, wherein indicating to the consumer that the utility of the device will be activated when the consumer contacts the creditor comprises indicating to the consumer that the utility of the device will be activated when the consumer contacts the creditor by a predetermined time period.

69. The method of claim 59, wherein the device comprises a mobile phone that, prior to activation of the utility of the mobile phone by the creditor, is operable to be used to contact only the creditor and one or more emergency services.

70. The method of claim 59, wherein indicating to the consumer that the utility of the device will be activated when the consumer contacts the creditor comprises indicating to the consumer using the device that the utility of the device will be activated if the consumer contacts the creditor.

71. The method of claim 59, wherein the utility is associated with communications.

72. A method of debt recovery, comprising:

providing a mobile phone to a consumer, the mobile phone operable to be used by the consumer to communicate with each of a plurality of parties selected by the consumer after a creditor initiates an activation of the mobile phone; and

indicating to the consumer that the activation of the mobile phone will be initiated if the consumer contacts the creditor.

73. The method of claim 72, wherein the consumer has a financial debt owed to the creditor

74. The method of claim 72, and further comprising:

participating in a communications session initiated by the consumer; and

initiating an activation of the mobile phone.

75. The method of claim 72, wherein, prior to the activation of the mobile phone, the mobile phone is operable to be used for communication with only the creditor and one or more emergency services, and further comprising:

participating in a communications session initiated by the consumer using the mobile phone; and

initiating an activation of the mobile phone.

76. The method of claim 72, wherein indicating to the consumer that the activation of the mobile phone will be initiated if the consumer contacts the creditor comprises indicating to the consumer that the activation of the mobile phone will be initiated if the consumer contacts the creditor within a predetermined amount of time.

77. The method of claim 72, and further comprising:

participating in a communications session initiated by the consumer; and

initiating an activation of an account associated with the mobile phone.

78. The method of claim 72, wherein the mobile phone is operable to be used by the consumer to communicate with each of a plurality of parties selected by the consumer after an activation code is entered into the mobile phone, and further comprising:

participating in a communications session initiated by the consumer; and

initiating an activation of the mobile phone by communicating the activation code to the consumer after the consumer initiates the communications session.

79. The method of claim 72, wherein the mobile phone is a prepaid mobile phone.

80. A method of debt recovery, comprising:

providing a card to a consumer, the card associated with an account established to give the consumer access to communications services after a creditor initiates an activation of the account; and

indicating to the consumer that activation of the account will be initiated if the consumer contacts the creditor.

81. The method of claim 80, wherein the consumer has a financial debt owed to the creditor.

82. The method of claim 80, and further comprising:

participating in a communications session initiated by the consumer; and

initiating an activation of the account.

83. The method of claim 80, and further comprising:

participating in a communications session initiated by the consumer; and

initiating an activation of the account, the account to be expired at a predetermined time period.

84. The method of claim 80, wherein the account associated with the card is established to be used for communication with only the creditor prior to the activation of the account, and further comprising:

participating in a communications session initiated by the consumer using the account; and

initiating an activation of the account.

85. The method of claim 80, wherein indicating to the consumer that activation of the account will be initiated if the consumer contacts the creditor comprises indicating to the consumer that activation of the account will be initiated if the consumer contacts the creditor within a predetermined time period.

86. The method of claim 80, wherein the card is a stored-value card.

87. The method of claim 80, wherein the card is a gift card.

88. The method of claim 80, wherein the card is a prepaid phone card.