Methods and apparatus for mapping sources and uses of consumer funds

• US 7,849,009 B2
• Filed: 01/02/2003
• Issued: 12/07/2010
• Est. Priority Date: 12/29/1999
• Status: Active Grant

• Current Assignee: Western Union
• Original Assignee: Western Union
• Inventors: Compiano, Craig, Rogers, Michael W., Grant, William R.
• Primary Examiner(s): Liversedge; Jennifer
• Assistant Examiner(s): Swartz; Jamie H
• Application Number:
  US10/336,671
• Publication Number:
  US 20040015438A1
• Time in Patent Office: 2,896 Days
• Field of Search: 705/35, 705/40
• 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 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

Abstract

The present invention provides exemplary bill paying service methods and systems. One such bill paying service method (1000) includes enrolling a subscriber (Step 1010) who is a debtor to a first creditor and who has authorized debits to be taken from a designated account. The designated account is adapted to periodically receive a payroll deposit on a first regular schedule that is over time in excess of a minimum payment on a first debt owed by the debtor to the first creditor. The designated account is periodically debited, and any funds obtained are used to credit a custody account (Step 1012). The first creditor is paid (Step 1016), on behalf of the debtor and from the custody account, on a second regular schedule that differs from the first regular schedule. Paying the first creditor occurs in an amount calculated for an accelerated repayment of the first debt (Step 1014). 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 bill-paying service method, comprising:

enrolling a subscriber who is a debtor to a first creditor and who has authorized debits to be taken from a designated account, the designated account periodically receiving a payroll deposit on a first regular schedule that is over time in excess of a minimum payment on a first debt owed by the debtor to the first creditor;

periodically debiting the designated account by a computer processor and using any funds obtained to credit a custody account;

paying by a computer processor the first creditor on behalf of the debtor from the custody account, wherein the paying occurs on a second regular schedule that differs from the first regular schedule, and wherein the paying is in an amount calculated for an accelerated repayment of the first debt;

providing a bill paying service mechanism configured to determine an amount of funds to be paid to a second creditor from the custody account to pay a second debt owed the second creditor by the debtor;

determining by a computer processor included in the bill paying service mechanism an amount of funds to be paid to the second creditor from the custody account to pay a second debt owed the second creditor by the debtor;

paying by a computer processor the second creditor on behalf of the debtor from the custody account; and

determining by a computer processor included in the bill paying service mechanism an extra payment to be made to the first creditor after paying the second creditor, the extra payment calculated to provide at least a portion of the accelerated repayment of the first debt.

2. The method as in claim 1 wherein periodically debiting the designated account coincides with the first regular schedule.

3. The method as in claim 1 further comprising charging a service fee to the subscriber by debiting the custody account.

4. The method as in claim 1 wherein the periodically debiting and the paying the first creditor each are implemented by a series of transmissions of ACH-files to an originating depository financial institution (ODFI) that has access to the designated account and the custody account, and that can forward funds to the first creditor.

5. The method as in claim 1 wherein a temporal difference between the first and second regular schedules provides at least partially for the accelerated repayment.

6. The method as in claim 1 further comprising reporting to the subscriber an adjusted credit term on the first debt.

7. The method as in claim 1 wherein the periodically debiting the designated account comprises debiting the designated account over a designated period of time in an amount that is at least as much as the sum of the first debt and the second debt.

8. The method as in claim 1 wherein the first debt comprises an interest-bearing debt and the second debt comprises a non-interest-bearing debt.

9. The method as in claim 1 wherein the designated account is adapted to periodically receive a second payroll deposit on a third regular schedule.

10. A bill paying system, comprising:

a computer programmed to perform designated functions with respect to;

a designated deposit account (DDA) belonging to a debtor, the DDA being periodically credited with a first credit on a first regular credit schedule;

a custody account, the custody account receiving funds from the DDA on a first funds transfer schedule;

a first creditor account belonging to a first creditor of the debtor; and

a second creditor account belonging to a second creditor of the debtor;

wherein the computer is programmed to determine an amount of funds comprising a first portion of the first credit to be transferred from the custody account to the first creditor account to provide an accelerated repayment of a first debt owed the first creditor by the debtor;

wherein the computer is further programmed to initiate a transfer of funds comprising a second portion of the first credit from the custody account to the second creditor account to pay a second debt owed the second creditor by the debtor; and

wherein the computer is further programmed to calculate an extra payment to be made to the first creditor after paying the second creditor, the extra payment calculated to provide at least a portion of the accelerated repayment of the first debt.

11. The bill paying system as in claim 10 wherein the DDA is periodically credited with a second credit on a second regular credit schedule.

12. The bill paying system as in claim 11 wherein at least one of the first and second credits comprises a direct deposit of a debtor paycheck.

13. The bill paying system as in claim 10 wherein the first debt comprises an interest-bearing debt and the second debt comprises a non-interest-bearing debt.

14. The bill paying system as in claim 10 wherein the computer is further programmed to report to the debtor:

the transfer of funds from the custody account to the first creditor account; and

an adjusted credit term on the first debt.

15. The bill paying system as in claim 10, wherein the computer is further programmed to interact with an originating depository financial institution (ODFI), the ODFI effectuating the transfer of funds between the DDA, the custody account and the first creditor account.

16. The bill paying system as in claim 10 wherein the computer is further programmed to perform a trust finder function.

17. The bill paying system as in claim 10 wherein the computer is further programmed to perform a campaign product tool.