Automated debt payment system and method using ATM network

• US 6,304,860 B1
• Filed: 10/03/1997
• Issued: 10/16/2001
• Est. Priority Date: 10/03/1997
• Status: Expired due to Fees

• Current Assignee: Hinkle D. Allen, Joseph B. Martin Jr
• Original Assignee: Hinkle D. Allen, Joseph B. Martin Jr
• Inventors: Hinkle, D. Allen, Martin, Joseph B. Jr.
• Primary Examiner(s): Voeltz, Emanuel Todd
• Assistant Examiner(s): KALINOWSKI, ALEXANDER G
• Application Number:
  US08/943,284
• Time in Patent Office: 1,474 Days
• Field of Search: 705/40, 705/43, 379/91.01
• US Class Current: 705/43
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/04 Payment circuits
• 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 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/18 involving self-service terminals [SST], vending machines, kiosks or multimedia terminals
• CPC Class Codes: G06Q 30/04 Billing or invoicing

Abstract

An electronic funds transfer methodology for providing access to a plurality of non-bank loan payment processors (loan servicers) through established ATM (automated teller machine) networks, thereby creating a payment system designed to allow a consumer to initiate an electronic transfer of funds from a primary bank transaction account (e.g., checking account, savings account) to a loan servicer to satisfy an outstanding consumer debt or payment obligation. Automated payment of consumer debt obligations through use of an ATM network is facilitated by a processor and associated software, which are employed to combine specific consumer loan payment data with specific depository transaction account information through an electronic ATM network for the purpose of affecting a more efficient loan payment/servicing process. Information relevant to the loan payment is electronically communicated from the loan servicer through software designed to access the servicer'"'"'s loan database, extract specific fields from designated records, and communicate this information to a third party central computer. The third party central computer reformats the data as necessary, aggregates this information with any similar information received from other loan or debt servicers, and transmits the aggregated information to one or more ATM transaction processors.

Claims

1. A method of processing a debt payment on a consumer debt obligation using an ATM network comprising the steps of:

communicating consumer debt obligation information for at least one consumer debt obligation from at least one debt servicer responsible for said at least one consumer debt obligation to a third party payment facilitator when a consumer has indicated to the at least one debt servicer that the consumer elects to use the third party payment facilitator to effect future payments over an ATM network;

storing said consumer debt obligation information in a computer database separate from said at least one debt servicer;

receiving command information with an ATM network access device from the consumer sufficient to identify the consumer debt obligation;

receiving command information with an ATM network access device from the consumer sufficient to identify the consumer debt obligation;

accessing said consumer debt obligation information to retrieve at least a portion of said consumer debt obligation information corresponding to said command information; and

transmitting said portion of said consumer debt obligation information to a transaction processor associated with the ATM network to facilitate a transaction requesting that funds be transferred from an account associated with said consumer to at least one account at a banking institution associated with said at least one debt servicer whereby a payment on the consumer debt obligation is made;

wherein said funds transferred from said account associated with said consumer are divided into at least first and second portions prior to being transferred to said at least one account at said banking institution and are transferred to at least two different accounts at said banking institution.

2. The method of claim 1 further comprising the step of displaying a reminder to the consumer that a payment is due and wherein said command information received from the consumer is received in response to said reminder.

3. The method of claim 1 wherein said consumer debt obligation is a mortgage obligation and a first one of said at least two different accounts at said at least one banking institution receives funds including at least a principal portion of said mortgage obligation and a second one of said at least two different accounts at said at least one banking institution receives funds including an escrow portion of said mortgage obligation.

4. A method of processing a debt payment on a consumer debt obligation using an ATM network comprising the steps of:

communicating consumer debt obligation information for at least one consumer debt obligation from at least one debt servicer responsible for said at least one consumer debt obligation to a third party payment facilitator when a consumer has indicated to the at least one debt servicer that the consumer elects to use the third party payment facilitator to affect future payments over an ATM network;

storing said consumer debt obligation information in a computer database separate from said at least one debt servicer;

receiving command information with an ATM network access device from the consumer sufficient to identify the consumer debt obligation;

accessing said consumer debt obligation information to retrieve at least a portion of said consumer debt obligation information corresponding to said command information; and

transmitting said portion of said consumer debt obligation information to a transaction processor associated with the ATM network to facilitate a transaction requesting that funds be transferred from an account associated with said consumer to at least one account at a banking institution associated with said at least one debt servicer whereby a payment on the consumer debt obligation is made;

wherein said transaction requesting that funds be transferred from an account associated with said consumer to said at least one account at said banking institution comprises at least two electronic credit requests.

5. A system for processing a debt payment on a consumer debt obligation using an ATM network comprising:

debt servicer access means for communicating consumer debt obligation information for at least one consumer debt obligation from at least one debt servicer responsible for said at least one consumer debt obligation to a third party payment facilitator when a consumer has indicated to the at least one debt servicer that the consumer elects to use the third party payment facilitator;

storage means connected with said debt servicer access means for storing said consumer debt obligation information in a computer database separate from said at least one debt servicer and associated with the third party facilitator;

ATM network access means connected with said storage means for transferring at least a portion of said consumer debt obligation information to an ATM network;

input means for receiving commands using an ATM network access device from a user identifying the consumer debt obligation;

database accessing means connected with said input means and said ATM network access means for accessing said computer database in response to said commands to retrieve at least a portion of said consumer debt obligation information from said database; and

transmission means connected with said data base accessing means for transmitting said portion of said consumer debt obligation information to a transaction processor associated with the ATM network to facilitate a transaction requesting that funds be transferred from an account associated with said consumer to an account at a banking institution associated with said at least one debt servicer;

wherein said funds transferred from said account associated with said consumer to said at least one banking institution are divided into at least a first and second portion prior to being transferred to said banking institution and are transferred to at least two different accounts at said banking institution.

6. The system of claim 5 further comprising display means for displaying a reminder to the consumer that a payment is due and wherein said commands received from the consumer are received in response to said reminder.

7. The system of claim 5 wherein said consumer debt obligation is a mortgage obligation and a first one of said at least two different accounts at said at least one banking institution receives funds including at least a principal portion of said mortgage obligation and a second one of said at least two different accounts at said at least one banking institution receives funds including an escrow portion of said mortgage obligation.

8. A method of electronically making a payment on one consumer debt obligation of a consumer using an ATM network comprising the steps of communicating data relating to said one consumer debt obligation from a debt servicer responsible for the consumer debt obligation to a third party payment facilitator, receiving input from said consumer directing a payment to be made on the consumer debt obligation in accordance with said data, dividing the payment into at least a first portion and a second portion prior to transferring funds from a consumer account associated with the consumer to an account at a banking institution associated with said debt servicer, and generating at least two electronic credits processed by said ATM network corresponding to said first portion and said second portion to transfer funds from said consumer account to at least two different accounts at said banking institution associated with said debt servicer.

9. The method of claim 8 wherein said consumer debt obligation is a mortgage obligation and a first one of said at least two different accounts at said banking institution receives funds including at least a principal portion of said mortgage obligation and a second one of said at least two different accounts at said banking institution receives funds including an escrow portion of said mortgage obligation.