METHOD AND APPARATUS FOR MAPPING SOURCES AND USES OF CONSUMER FUNDS

• US 20090327127A1
• Filed: 07/06/2009
• Published: 12/31/2009
• Est. Priority Date: 12/29/1999
• Status: Active Grant

• Current Assignee: Western Union
• Original Assignee: Western Union
• Inventors: Compiano, Craig
• Granted Patent: US 8,255,326 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 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A bill-paying system includes a customer deposit account which receives periodic payroll deposits of an individual or a couple. A bill-paying service enrolls the individual or couple for a fee, and is authorized to transfer money from the deposit account to the accounts of various creditors. An originating depository financial institution, such as a bank, handles the transfers of money, and such transfers are preferably done electronically. The automated clearing house (ACH) network supports such electronic money transfers. The various bills and debts of the individual or couple come due at times that are asynchronous to their income structure. The bill-paying service is authorized to debit the deposit account for more than the basic minimums due the creditors each month. Such excess is used to accelerate the repayment of various loans and debts according to what particular application at that time will have the greatest long-term beneficial effect.

Claims

1. A machine-readable medium for bill payment, including sets of instructions stored thereon which, when executed by a machine, cause the machine to:

periodically initiate on a funds transfer schedule a debit to a designated deposit account (DDA) belonging to a debtor;

receive funds from the DDA to a custody account;

determine an amount of funds and a date that funds are to be transferred from the custody account to a creditor'"'"'s creditor account in order to pay down both interest and principle of a debt owed and accomplish an accelerated repayment of the debt owed to the creditor by the debtor;

wherein the creditor account includes an associated minimum payment frequency;

wherein the amount of funds to be transferred from the custody account to the creditor account is determined based at least in part on maintaining a minimum balance threshold value in the custody account;

wherein the date that funds are to be transferred from the custody account to the creditor account is determined based at least in part on transferring funds to the creditor account at a greater frequency than the associated minimum payment frequency; and

wherein the greater frequency decreases the length of repayment of the debt.

2. The machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to periodically credit the DDA with a credit on a regular credit schedule.

3. The machine-readable medium of claim 2, wherein the credit comprises a direct deposit of a debtor paycheck.

4. The machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to determine a second amount and a date that funds from the custody account are to be transferred to a second creditor'"'"'s creditor account to pay a second debt owed to the second creditor by the debtor.

5. The machine-readable medium of claim 1, wherein the debt comprises an interest-bearing debt.

6. The machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to report to the debtor a transfer of funds from the custody account to the creditor account.

7. The machine-readable medium of claim 6, wherein the sets of instructions when further executed by the machine, cause the machine to report to the debtor an adjusted credit term.

8. The machine-readable medium of claim 1, wherein the transferring of the funds between the DDA, the custody account, and the creditor account is performed using an originating depository financial institution (ODFI).

9. The machine-readable medium of claim 1, The machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to offer the debtor a campaign product.

10. The machine-readable medium of claim 1, The machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to receive, at the DDA, credits over time that are in excess of a particular debt owed by the debtor to the creditor.

11. The machine-readable medium of claim 1, The machine-readable medium of claim 10, wherein the sets of instructions when further executed by the machine, cause the machine to provide for a computation of the accelerated re-payment.

12. The machine-readable medium of claim 11, The machine-readable medium of claim 10, wherein the sets of instructions when further executed by the machine, cause the machine to transfer an excess payment to the creditor account that provides a reduction in a total finance charge earned by the creditor and charged to the debtor.