Credit approval system

• US 5,774,882 A
• Filed: 10/25/1993
• Issued: 06/30/1998
• Est. Priority Date: 03/12/1992
• Status: Expired due to Fees

• Current Assignee: Helen J. Panzullo, Regina D. Keen
• Original Assignee: Helen J. Panzullo, Regina D. Keen
• Inventors: Panzullo, Helen J., Keen, Regina D.
• Primary Examiner(s): Hayes, Gail O.
• Assistant Examiner(s): Bainbridge, Barton L.
• Application Number:
  US08/140,489
• Time in Patent Office: 1,709 Days
• Field of Search: 364/401, 364/406, 364/408, 364/405, 382/41, 382/61, 382/101, 382/175, 382/176, 382/187, 235/375, 235/380, 705/35, 705/38
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/403 Solvency checks
• 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

An automated security credit checking system for checking a credit application for fraud before a credit card is issued. The credit checking system scans the credit application, and uses an optical character recognition program to check the application. The credit checking system helps determine whether the application is legible, and whether there is a discrepancy between the post mark and the mailing address. The credit checking system automatically determines whether the application is a corporate or individual application, and whether the application is one of numerous requests from the same person, employer, or address. The credit checking system also tracks the status of each application and the route each type of application has taken, whether it is a corporate application, a suspected fraudulent application, a verified fraudulent application, or a rejected application. This credit checking system checks on-line national fraud information sources, and fraud information that is compiled by the system and entered into system memory on a daily basis. A letter listing credit bureaus to contact for protection is generated and sent to any victim of fraud detected during daily credit checking. The automated credit checking system keeps a daily tally of the number of corporate applications received, the percentage of individual applications approved, the percentage of individual applications declined or rejected, and the percentage of individual applications that were detected as being fraudulent.

Claims

1. An automated security credit checking system comprising:

main computer system processor means;

computer terminal means electronically connected to said main computer processor means for receiving and scanning original credit applications and envelope postmarks from envelopes of the original credit applications wherein a scanned credit application and envelope postmark is formed when a credit application and envelope postmark is scanned;

system memory means for storing said scanned credit application and envelope postmark that is sent to said system memory means from said computer terminal means;

inputter terminal means electronically connected to said main computer system processor for allowing review of said scanned credit application and envelope postmark for legibility, wherein said scanned credit application and envelope postmark is sent to said inputter terminal means from said system memory means;

verification terminal means electronically connected to said main computer system processor means for determining whether said scanned credit application contains suspected fraud by comparing a mailing address of the application to a location from the envelope postmark and suspecting fraud if the mailing address and postmark location are different;

verified fraudulent application terminal means electronically connected to said main computer system processor means for processing said scanned credit application after determining that said scanned credit application contains verified fraud;

review terminal means electronically connected to said main computer system processor means for receiving said scanned credit application after processing by said verification terminal means when said verification terminal means determines than no fraud exists in said scanned application; and

tallies means electronically connected to said main computer system processor means for calculating totals and percentages of applications received and approved on a daily basis.

2. The automated security credit checking system according to claim 1, wherein:

said main computer system processor means further comprises communication means for accessing and checking information on said scanned credit application against information supplied by a plurality of credit database means;

sorting means for determining the type of credit application said scanned credit application is, whereby the types of credit applications comprises a corporate type and an individual type.

3. The automated security credit checking system according to claim 2, wherein said tallies means calculates a total number of corporate type applications received on any one day, a percentage of a total number of individual type applications received on any one day that are fraudulent, a percentage of said total number of individual type applications received on any one day that are approved, and a percentage of said total number of individual type applications taken in on any one day that are declined.

4. The automated security credit checking system according to claim 3, wherein said main computer processor means further comprises means for compiling and displaying geographic regions where a substantial number of fraudulent applications have originated.

5. The automated security credit checking system according to claim 1, wherein said computer terminal means comprises a character recognition means for determining the legibility of said scanned application.

6. The automated security credit checking system according to claim 1, wherein said verified fraudulent application terminal means generates a letter for mailing to a victim of verified fraud, whereby said letter states which credit bureaus said victim can contact for protection against said fraud.

7. The automated security credit checking system according to claim 1, wherein said review means checks information on said scanned credit application to determine the eligibility of said applicant for credit by comparing said scanned application with credit criteria including whether an applicant earns sufficient money to obtain different levels of credit, if said applicant has been employed at said applicant'"'"'s current employer long enough, if said applicant has lived at said applicant'"'"'s current home address long enough, if said applicant has paid said applicant'"'"'s past bills in a timely manner, and if said applicant'"'"'s current address is only inhabited by said applicant.

8. A method of reviewing credit card applications prior to issuance of credit comprising the steps of:

scanning each credit application received to form a digital record of the credit application;

storing each scanned application filed by an applicant in a system memory means;

checking the stored scanned application for legibility;

prompting an inputter to call an applicant listed on the digital record to verify and correct illegible and incorrect information;

checking the stored scanned application to determine whether it is a corporate application;

sending the stored scanned application to a corporate queue if the scanned application is determined to be a corporate application;

sending the fact that the scanned application is a corporate application to a tallies means;

scanning an envelope in which the credit application is contained to form a digital record of the envelope;

checking the scanned application to see if there is a discrepancy between a scanned postmark on the envelope and a mailing address on the scanned application;

sending the scanned application and the scanned postmark to a security means to be checked for verified fraud if the discrepancy is found;

checking to see if the digital record is one of numerous applications listing the same applicant, applicant'"'"'s employer or applicant'"'"'s address if there is no discrepancy between the post mark and the mailing address on the scanned application;

sending the stored scanned application to the security means if the scanned application is one of the numerous applications listing the same applicant, applicant'"'"'s employer or applicant'"'"'s address;

sending the stored scanned application to a review means if the film record contains no verified fraud,

checking the stored scanned application to determine if the applicant is eligible for various levels of credit;

sending a letter listing various credit bureaus to contact for protection to a victim of the verified fraud when verified fraud is established and then sending the fact that the digital record contains verified fraud to the tallies means;

sending a decline letter to the applicant if the credit application is declined and there is no verified fraud and sending the fact that the credit application is declined to the tallies area; and

sending an approval letter to the applicant if the credit application is approved and sending the fact that the credit application is approved to the tallies area.

9. The method of reviewing credit card applications of claim 8, further comprising the steps of:

calculating a number of credit applications sent to the corporate queue each day;

storing the number of the stored scanned applications sent to the corporate queue in the tallies means;

calculating a percentage of the scanned applications that are approved based on a total number of scanned applications processed;

storing the percentage of credit applications that are approved in the tallies area;

calculating a percentage of scanned applications that are declined based on the total number of individual applications processed;

storing the percentage of the credit applications that are declined in the tallies area;

calculating a percentage of scanned applications that contain verified fraud compared to the total number of scanned applications processed; and

storing the percentage of scanned applications that contain verified fraud in the tallies area.

10. The method of reviewing credit card applications of claim 8, further comprising the steps of:

checking information on the stored scanned applications against information contained in various credit databases and contained in the system memory when the digital record is in the security means to verify if there is fraud present on the scanned application.

11. A method of reviewing credit applications, the improvements comprising:

scanning an envelope containing a credit application, and digitally storing the scanned envelope in a memory means;

scanning the credit application, and digitally storing the scanned application in the memory means;

checking for discrepancies between a mailing address contained in the stored application and a postmark contained on the stored envelope;

sending the stored application and the stored postmark to a security means to verify the existence of fraud in the stored application if the discrepancies are found;

sending the stored application to a verification means for comparing the stored application to information contained in a database means for determining whether the stored application is related to multiple requests from the same person;

sending the stored application to the security means to verify the existence of fraud in the stored application if the determination is found to be affirmative;

sending the stored application to a review means to conclude whether to approve or deny the stored application if the determination is found to be negative.

12. The method of reviewing credit applications according to claim 11, further comprising the steps of:

sending the stored application to a verification means for comparing the stored application to information contained in a database means for determining whether the stored application is related to multiple requests from the same employer.

13. The method of reviewing credit applications according to claim 11, further comprising the steps of:

sending the stored application to a verification means for comparing the stored application to information contained in a database means for determining whether the stored application is related to multiple requests from the same address.

14. The method of reviewing credit applications according to claim 11, further comprising the steps of:

generating automatically a letter for mailing to a victim of verified fraud when verified fraud is found to exist, whereby the letter lists which credit bureaus the victim may contact for protection against the fraud.

15. The method of reviewing credit applications according to claim 11, further comprising the steps of:

generating automatically a letter for mailing to a victim of verified fraud when verified fraud is found to exist, whereby the letter lists which credit bureaus the victim can contact for protection against the fraud.