Method and system for rapid loan approval

• US 7,933,833 B2
• Filed: 08/31/2006
• Issued: 04/26/2011
• Est. Priority Date: 08/31/2006
• Status: Active Grant

• Current Assignee: CC Serve Corp. (Atlanticus Holdings Corporation)
• Original Assignee: Compucredit Intellectual Property Holdings Corporation II
• Inventors: Hotz, Stephen, Kelly, Jennifer, Srinivasan, Krishnamoorthy, Jindia, Ajay Kumar
• Primary Examiner(s): Colbert, Ella
• Assistant Examiner(s): Malhotra, Sanjeev
• Application Number:
  US11/469,467
• Publication Number:
  US 20080059363A1
• Time in Patent Office: 1,699 Days
• Field of Search: 705/1, 705/14, 705/26, 705/35, 705/37, 705/38, 705/39, 705/42, 705/45, 705/50, 705/64, 235/379, 463/42, 707/10, 709/204
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 30/0241 Advertisements
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• 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 for rapidly and remotely providing temporary credit to a borrower is provided. In one embodiment, a lender uses as one criterion in approving the temporary credit a minimum number of deposits within a predetermined deposit verification time. Upon receipt of a request for credit, which may come either from a prospective borrower or from a merchant upon denial of credit to the prospective borrower, a lender queries a deposit account to determine whether a predetermined minimum number of deposits has been made within a predetermined deposit verification time. The lender may also determine whether each of the deposits exceeds a minimum deposit amount. Where approved, the lender is able to rapidly dispense funds for use by the borrower. In one embodiment, the lender makes these funds available via a pre-paid credit card. The lender is then able to collect principal and interest through electronic withdrawals.

Claims

1. A method, operable with one or more processors, to control the one or more processors to execute a method for extending a temporary line of credit to a customer, the method comprising:

receiving a request for the temporary line of credit from the customer;

verifying, with a processing module operable with the one or more processors, at least a minimum number of deposit transactions have occurred in a deposit account belonging to the customer within a predetermined deposit verification time;

verifying, with the one or more processors, that at least one prohibitive criterion has not been met by the customer;

extending, with a credit extension module operable with the one or more processors, the temporary line of credit to the customer only where the at least a minimum number of deposit transactions have occurred in the deposit account within the predetermined deposit verification time;

collecting, with a collection module operable with the one or more processors, a repayment amount from the deposit account within a predetermined deposit time window;

transmitting electronically temporary line of credit terms and conditions to the customer; and

receiving an electronic signature authorizing an automated withdrawal from the deposit account.

2. The method of claim 1, wherein an elapsed time between the step of receiving the request for the temporary line of credit from the customer and the step of extending the temporary line of credit to the customer is less than sixty (60) seconds.

3. The method of claim 1, prior to the receiving the request for the temporary line of credit, further comprising transmitting a temporary credit line extension offer to the customer by one of e-mail, telephone, data message and multimedia message.

4. The method of claim 3, wherein transmitting the temporary credit line extension offer is triggered by a third party credit rejection received by the customer.

5. The method of claim 1, wherein the at least one prohibitive criterion is selected from the group consisting of an existence of an outstanding loan, an existence of a discounted credit repayment, and an existence of a payment due for more than a predetermined payment due period.

6. The method of claim 1, wherein the method is paperless.

7. The method of claim 1, wherein the minimum number of deposit transactions comprises at least three deposit transactions, further wherein the predetermined deposit verification time is less than ninety (90) days.

8. The method of claim 7, wherein the extending a temporary line of credit to the customer occurs only where each of the minimum number of deposit transactions is for an amount greater than a minimum deposit amount.

9. The method of claim 8, wherein the temporary line of credit comprises a temporary credit amount, wherein a determination of the temporary credit amount depends from a deposit history within the deposit account.

10. The method of claim 9, wherein the deposit history comprises the minimum deposit amount.

11. The method of claim 1, wherein the predetermined deposit time window comprises a period running from three days prior to a deposit transaction through three days after the deposit transaction.

12. The method of claim 1, wherein the extending a temporary line of credit to the customer occurs only where the deposit account is configured to receive direct deposit transactions.

13. The method of claim 1, further comprising:

determining an available amount of credit; and

wherein the available amount of credit is below a predetermined threshold, transmitting an invitation for the temporary line of credit to the customer.

14. The method of claim 1, further comprising:

reviewing a purchase history to determine an anticipated purchase; and

where an available amount of credit is insufficient to make the anticipated purchase, transmitting an invitation for a temporary line of credit to the customer.

15. A system for extending temporary credit to a customer, the system comprising:

a. a network information server configured to deliver browser readable content to a client terminal having a browser in communication with the Internet, the network information server providing at least a temporary extension of credit webpage to the browser with which the customer may submit a request for a temporary extension of credit, wherein the request for the temporary extension of credit includes at least information identifying a deposit account belonging to the customer;

b. a processing module operable with the network information server, the processing module being configured to verify that at least a predetermined number of deposit transactions have occurred in the deposit account, within a predetermined deposit verification time, in response to the request for the temporary extension of credit;

c. a credit extension module operable with the network information server, the credit extension module being configured to direct the network information server to extend a temporary extension of credit to the customer where the predetermined number of deposit transactions have occurred within the predetermined deposit verification time;

d. a financial transfer module operable with the network information server, the financial transfer module being configured to cause funds to be deposited in the deposit account;

e. a collection module operable with the financial transfer module, the collection module being configured to automatically collect a payment amount from the deposit account within a predetermined deposit time window;

f. wherein the credit extension module is configured to direct the network information server to transmit terms and conditions of the temporary extension of credit to the browser; and

g. wherein the terms and conditions include a provision providing an authorization from the customer for an electronic automated withdrawal from the deposit account within the predetermined deposit time window.

16. The system of claim 15, wherein an elapsed time within which the processing module verifies that the predetermined number of deposit transactions have occurred in the deposit account within the predetermined deposit verification time, the credit extension module directs the network information server to extend a temporary offer of credit, and the financial transfer module causes funds to be deposited in the deposit account, is less than sixty (60) seconds.

17. The system of claim 16, further comprising a messaging module operable with the network information server, the messaging module being configured to transmit a message to the customer directing the customer to the temporary extension of credit webpage.

18. The system of claim 16, further comprising a communications link between the financial transfer module and the deposit account.

19. A method for extending a temporary line of credit, the method comprising:

receiving, at a merchant terminal, a customer request to purchase one of goods and services;

transmitting, from the merchant terminal, a credit authorization request for the purchase;

receiving, at the merchant terminal, a denial of the credit authorization request;

transmitting, from the merchant terminal, a request for a temporary line of credit on behalf of a customer;

receiving, at the merchant terminal, an authorization for a temporary line of credit upon a verification of a minimum number of deposit transactions in a customer deposit account within a predetermined deposit verification time; and

completing a sale for the one of goods and services.

20. The method of claim 19, wherein a duration between the step of transmitting the request for the temporary line of credit on behalf of the customer and the step of receiving the authorization for the temporary line of credit is less than sixty (60) seconds.