Late fee avoidance system

• US 7,653,591 B1
• Filed: 09/13/2002
• Issued: 01/26/2010
• Est. Priority Date: 09/13/2002
• Status: Active Grant

• Current Assignee: James Wilson Dabney
• Original Assignee: James Wilson Dabney
• Inventors: Dabney, James W.
• Primary Examiner(s): Poinvil; Frantzy
• Assistant Examiner(s): Graham; Clement
• Application Number:
  US10/243,219
• Time in Patent Office: 2,692 Days
• Field of Search: 705/40, 705 35- 38
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and apparatus are disclosed (a) which maintain credit card account and billing data including (i) data correlating credit card numbers, cardholders, and payment information such as mailing addresses or American Banking Association (ABA) routing numbers of the payee or his representative; (ii) data from which a payment due date can be determined; and (iii) means for estimating, receiving, or calculating a payment amount equal to or greater than a minimum payment amount due during a credit card'"'"'s billing cycle; (b) which provide a mechanism for automatic funding of said payment amount payable during a billing cycle; and (c) which provide a mechanism for automatically issuing said payment amount to a designated payee or his representative whereby “late fees” are avoided.

Claims

1. A system for avoiding assessment of a late fee against a billing account designated by a billing account identifier, said system comprising:

one or more computer processors, said computer processors comprising computer hardware and software, said software comprising;

(i) computer instructions to cause said one or more computer processors to determine a payment amount for said billing account, said payment amount being adequate to avoid assessment of a late fee;

(ii) computer instructions to cause said one or more computer processors to store said payment amount in computer memory in linked association with said billing account identifier;

(iii) computer instructions to cause said one or more computer processors to cause funding of said payment amount utilizing credit available under said billing account;

(iv) computer instructions to cause said one or more computer processors to record said funding in computer memory in linked association with said billing account identifier;

(v) computer instructions to cause said one or more computer processors to cause payment to be made for said billing account in said payment amount no later than a due date, thereby avoiding a late fee against said billing account; and

(vi) computer instructions to cause said one or more computer processors to record said payment in computer memory in linked association with said billing account identifier.

2. The system of claim 1, wherein said payment amount is automatically calculated by reference to a credit limit of said billing account.

3. The system of claim 1, wherein payment terms are recorded for said billing account.

4. The system of claim 3, wherein said payment terms include a credit limit.

5. The system of claim 3, wherein said payment terms include said due date.

6. The system of claim 3, wherein said payment terms are recorded by means of an interactive internet web site.

7. The system of claim 1, wherein said payment is made electronically to a payee of said billing account.

8. The system of claim 1, wherein the payment amount is determined in accordance with a formula.

9. A method for avoiding assessment of a late fee against a billing account for failure to make a minimum payment by a due date, said method comprising:

a) electronically storing information for said billing account in computer memory, said information comprising a billing account identifier;

b) electronically determining in one or more computer processors a payment amount for said billing account, said payment amount being adequate to avoid assessment of a late fee;

c) electronically storing said payment amount in computer memory in linked association with said billing account identifier;

d) utilizing credit available under said billing account to fund said payment amount such that said billing account is credited by said payment amount no later than the due date, thereby avoiding a late fee against said billing account;

e) electronically recording said funding in computer memory in linked association with said billing account identifier; and

f) electronically recording said payment in computer memory in linked association with said billing account identifier.

10. The method of claim 9, wherein said payment amount is automatically calculated by reference to a credit limit of said billing account.

11. The method of claim 9, wherein payment terms are recorded for said billing account.

12. The method of claim 11, wherein said payment terms include a credit limit.

13. The method of claim 11, wherein said payment terms include said due date.

14. The method of claim 11, wherein said payment terms are recorded by means of an interactive internet web site.

15. The method of claim 9, wherein said payment is made electronically to a payee of said billing account.

16. The method of claim 9, wherein the payment amount is determined in accordance with a formula.

17. A system for avoiding assessment of a late fee against a billing account for failure to make a minimum payment by a due date, said system comprising:

a) means for causing information for said billing account to be stored in computer memory, said information comprising a billing account identifier;

b) means for causing one or more computer processors to determine a payment amount for said billing account, said payment amount being adequate to avoid assessment of a late fee;

c) means for causing said payment amount to be stored in computer memory in linked association with said billing account identifier;

d) means for utilizing credit available under said billing account to fund said payment amount and for causing said billing account to be credited by said payment amount no later than the due date, thereby avoiding a late fee against said billing account;

e) means for causing said funding to be recorded in computer memory in linked association with said billing account identifier; and

f) means for causing said payment to be recorded in computer memory in linked association with said billing account identifier.

18. A system for avoiding assessment of a late fee against a billing account designated by a billing account identifier, said system comprising:

one or more computer processors, said computer processors comprising computer hardware and software, said software comprising;

(i) computer instructions to cause said one or more computer processors to automatically determine a payment amount for said billing account, said payment amount being selected to be less than a balance due for said billing account but adequate to avoid assessment of a late fee;

(ii) computer instructions to cause said one or more computer processors to store said payment amount in computer memory in linked association with said billing account identifier;

(iii) computer instructions to cause said one or more computer processors to cause automatic funding of said payment amount;

(iv) computer instructions to cause said one or more computer processors to record said funding in computer memory in linked association with said billing account identifier;

(v) computer instructions to cause said one or more computer processors to cause payment to be made for said billing account in said payment amount no later than a due date, thereby avoiding a late fee against said billing account; and

(vi) computer instructions to cause said one or more computer processors to record said payment in computer memory in linked association with said billing account identifier.

19. The system of claim 18, wherein said payment amount is automatically calculated by reference to a credit limit of said billing account.

20. The system of claim 18, wherein payment terms are recorded for said billing account.

21. The system of claim 20, wherein said payment terms include a credit limit.

22. The system of claim 20, wherein said payment terms include said due date.

23. The system of claim 20, wherein said payment terms are recorded by means of an interactive internet web site.

24. The system of claim 18, wherein said payment amount is funded utilizing credit available under said billing account.

25. The system of claim 18, wherein said payment is made electronically to a payee of said billing account.

26. The system of claim 18, wherein the payment amount is determined in accordance with a formula.

27. A method for avoiding assessment of a late fee against a billing account for failure to make a minimum payment by a due date, said method comprising:

a) electronically storing information for said billing account in computer memory, said information comprising a billing account identifier;

b) electronically determining automatically in one or more computer processors a payment amount for said billing account, said payment amount being selected to be less than a balance due for said billing account but adequate to avoid assessment of a late fee;

c) electronically storing said payment amount in computer memory in linked association with said billing account identifier;

d) automatically funding said payment amount such that said billing account is credited by said payment amount no later than the due date, thereby avoiding a late fee against said billing account;

e) electronically recording said funding in computer memory in linked association with said billing account identifier; and

f) electronically recording said payment in computer memory in linked association with said billing account identifier.

28. The method of claim 27, wherein said payment amount is automatically calculated by reference to a credit limit of said billing account.

29. The method of claim 27, wherein payment terms are recorded for said billing account.

30. The method of claim 29, wherein said payment terms include a credit limit.

31. The method of claim 29, wherein said payment terms include said due date.

32. The method of claim 29, wherein said payment terms are recorded by means of an interactive internet web site.

33. The method of claim 27, wherein said payment amount is funded utilizing credit available under said billing account.

34. The method of claim 27, wherein said payment is made electronically to a payee of said billing account.

35. The method of claim 27, wherein the payment amount is determined in accordance with a formula.

36. A system for avoiding assessment of a late fee against a billing account for failure to make a minimum payment by a due date, said system comprising:

a) means for causing information for said billing account to be stored in computer memory, said information comprising a billing account identifier;

b) means for causing one or more computer processors to automatically determine a payment amount for said billing account, said payment amount being selected to be less than a balance due for said billing account but adequate to avoid assessment of a late fee;

c) means for causing said payment amount to be stored in computer memory in linked association with said billing account identifier;

d) means for automatically funding said payment amount and for causing said billing account to be credited by said payment amount no later than the due date, thereby avoiding a late fee against said billing account;

e) means for causing said funding to be recorded in computer memory in linked association with said billing account identifier; and

f) means for causing said payment to be recorded in computer memory in linked association with said billing account identifier.