Online credit escrow service

• US 20090228392A1
• Filed: 02/13/2009
• Published: 09/10/2009
• Est. Priority Date: 03/05/2008
• Status: Active Grant

• Current Assignee: Walter H. Pinson III
• Original Assignee: Walter H. Pinson III
• Inventors: PINSON, WALTER H. III
• Granted Patent: US 8,401,960 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

The online credit escrow service is a method of protecting the credit of debtors who are paying back their debts. The method involves a third party as an intermediary between the debtor and the debt collector. The debtor delivers money to a third party that stores the money in an escrow account. The third party then contacts the debt collector and notifies them that the debt has been paid, but payment will not be transferred to the debt collector until the credit rating of the debtor has been updated to reflect the payment. When the debt collector updates the debtor'"'"'s credit rating the payment for the debt is sent to the debt collector.

Claims

1. A computerized online credit escrow method, comprising the steps of:

accepting payment from a debtor;

storing the payment in an escrow account;

verifying that the debtor'"'"'s credit record has been updated; and

releasing the payment to the debt collector.

2. The computerized online credit escrow method according to claim 1, wherein the step of accepting payment comprises accepting input regarding payment information from a computing device operated by the debtor.

3. The computerized online credit escrow method according to claim 1, further comprising the step of updating the debtor'"'"'s credit reporting agency credit record.

4. The computerized online credit escrow method according to claim 1, further comprising the step of notifying the debt collector that the debt has been paid and that payment will not be transferred to the debt collector until a credit reporting agency credit record of the debtor has been accurately updated to reflect the payment.

5. The computerized online credit escrow method according to claim 4, wherein the step of notifying the debt collector comprises transmitting a notification to a computing device accessible to the debt collector.

6. The computerized online credit escrow method according to claim 1, wherein verifying that the debtor'"'"'s credit record has been updated comprises receiving debtor credit record information compiled by at least one credit bureau.

7. The computerized online credit escrow method according to claim 1, wherein the step of accepting payment further comprises accepting electronic funds from the debtor in any combination of credit card, direct deposit, wire transfer and check payments.

8. The computerized online credit escrow method according to claim 1, further comprising the step of conducting payment negotiations with the debt collector on behalf of the debtor.

9. The computerized online credit escrow method according to claim 1, further comprising the steps of accepting and responding to administrative inputs initiated by an administrator via an administrative computing device.

10. The computerized online credit escrow method according to claim 1, further comprising the step of charging a utilization fee.

11. The computerized online credit escrow method according to claim 1, further comprising the steps of notifying the debt collector that the debt has been paid and that payment will not be transferred to the debt collector until a credit reporting agency credit record of the debtor has been accurately updated to reflect the payment, periodically checking to see if the credit record has been updated, and if the credit record has not been updated, repeating the notifying step.

12. The computerized online credit escrow method according to claim 1, further comprising the step of generating a transaction record.

13. A computerized online credit escrow method, comprising the steps of:

receiving an escrow payment into an escrow account via transactional communication with a debtor server, the escrow payment being on behalf of a debtor;

accepting escrow instructions from the debtor server, the escrow instructions placing conditions for release of the escrow payment to a creditor;

verifying the conditions for release; and

upon successful verification of the conditions for release, releasing the escrow payment to the creditor.

14. The computerized online credit escrow method according to claim 13, further comprising the step of conducting payment negotiations with the debt collector on behalf of the debtor.

15. A computerized online credit escrow method, comprising the steps of:

receiving notification via transactional communication with a debtor server that an escrow payment for the benefit of a creditor has been made on behalf of a debtor;

receiving notification via transactional communication with the debtor server that the payment will not be transferred to a debt collector until a credit reporting agency credit record of the debtor has been accurately updated to reflect the payment;

updating the debtor'"'"'s credit reporting agency credit record;

transmitting information regarding update details of the debtor'"'"'s credit reporting agency credit record; and

accepting the payment into an account held by the debt collector on behalf of the debtor for the benefit of the creditor.