Computerized extension of credit to existing demand deposit accounts, prepaid cards and lines of credit based on expected tax refund proceeds, associated systems and computer program products

• US 8,175,962 B2
• Filed: 09/18/2009
• Issued: 05/08/2012
• Est. Priority Date: 12/18/2008
• Status: Active Grant

• Current Assignee: Pathward National Association
• Original Assignee: MetaBank (Meta Financial Group Incorporated)
• Inventors: Galit, Scott H., Sorbe, Trent
• Primary Examiner(s): Norman, Samica L
• Application Number:
  US12/562,331
• Publication Number:
  US 20100161477A1
• Time in Patent Office: 963 Days
• Field of Search: 705/31, 705/38
• US Class Current: 705/38
• 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 40/123 Tax preparation or submission

Abstract

Systems, computer program products, and computer-implemented methods apply or otherwise make available new credit or additional credit to demand deposit accounts, prepaid cards, and existing lines of credit of a customer based on expected tax refund amounts. A computerized estimate of the tax refund available from a tax return of the customer is formed. A portion of the computerized estimate of the tax refund which can be made available as the line of credit is then determined. The existing line of credit is then adjusted based on the expected refund determined to be available, which will serve as an additional source of repayment for the line of credit. One or more of several adjustments may then be made to an existing line of credit: the line of credit may be increased; fees reduced; or the terms of payment adjusted. The invention may be implemented as a computerized process, a computer system or a computer program product.

Claims

1. A computer-implemented method of adjusting an existing line of credit account, the method comprising:

determining, by a computer associated with a credit provider and configured to control a plurality of existing line of credit accounts, whether a consumer has one or more of a plurality of existing line of credit accounts, each of the plurality of existing line of credit accounts adapted to be drawn in at least one of a plurality of separate predetermined loan increments;

determining, by the computer, an estimated tax refund for the consumer responsive to the consumer having one or more of the plurality of existing line of credit accounts;

determining, by the computer, a portion of the estimated tax refund available as borrowing capacity in a number of separate predetermined loan increments; and

modifying, by the computer, the one or more of the plurality of the existing line of credits for the consumer based on the determined portion of the estimated tax refund available as borrowing capacity, the modification including at least an increase or decrease to a total credit limit of the one or more of the plurality of existing line of credits by the number of separate predetermined loan increments, the modified total credit limit adapted to be drawn in at least one of the plurality of separate predetermined loan increments.

2. A computer-implemented method as defined in claim 1, wherein the one or more of the plurality of existing line of credit accounts are associated with one or more of a plurality of demand deposit accounts associated with the consumer;

and the method further comprising;

loading, by the computer, one or more of the plurality of demand deposit accounts with draws from the one or more of the plurality of existing line of credit accounts in at least one of the plurality of separate predetermined loan increments, a total value of a predetermined loan advance fee being equal to a predetermined fee multiplied by the number of separate predetermined loan increments loaded to the one or more of the plurality of demand deposit accounts.

3. A computer-implemented method as defined in claim 1, wherein the one or more of the plurality of existing line of credit accounts are associated with one or more of a plurality of prepaid card accounts associated with the consumer;

and the method further comprising;

loading, by the computer, one or more of the plurality of prepaid card accounts with draws from the one or more of the plurality of existing line of credit accounts in at least one of the plurality of separate predetermined loan increments, a total value of a predetermined loan advance fee being equal to a predetermined fee multiplied by the number of separate predetermined loan increments loaded to the one or more of the plurality of prepaid card accounts.

4. A computer-implemented method as defined in claim 1, wherein the one or more of the plurality of existing line of credit accounts are associated with one or more of a plurality of customer accounts positioned remote from the computer and the method further comprising:

repaying at least a portion of a line of credit balance of one or more of the plurality of existing line of credit accounts responsive to receiving a tax refund associated with the consumer.

5. A computer-implemented method as defined in claim 1, wherein at least a portion of a line of credit balance of one or more of the plurality of existing line of credit accounts is not due until a tax refund associated with the consumer is received;

and wherein the estimated tax refund is determined and the total credit limit is modified prior to a tax return being filed.

6. A computer-implemented method as defined in claim 1, wherein modifying includes modifying one or more terms of the one or more of the plurality of existing line of credit accounts.

7. A computer-implemented method as defined in claim 1, wherein the portion of the estimated tax refund available as borrowing capacity is determined based on underwriting criteria;

and wherein the modifying includes modifying one or more terms of the one or more of the plurality of existing line of credit accounts.

8. A computer associated with a credit provider for adjusting an existing line of credit account, the computer comprising:

one or more input/output unit;

one or more processors;

one or more non-transitory computer-readable memories encoded with computer program, the computer program comprising a set of instructions that, when executed by a computer, causes the computer to perform the operations of;

determining whether a consumer has one or more of a plurality of existing line of credit accounts, each of the plurality of existing line of credit accounts adapted to be drawn in at least one of a plurality of separate predetermined loan increments;

determining an estimated tax refund for the consumer responsive to the consumer having one or more of the plurality of existing line of credit accounts;

determining a portion of the estimated tax refund available as borrowing capacity in a number of separate predetermined loan increments; and

modifying the one or more of the plurality of the existing line of credits for the consumer based on the determined portion of the estimated tax refund available as borrowing capacity, the modification including at least an increase or decrease to a total credit limit of the one or more of the plurality of existing line of credits by the number of separate predetermined loan increments, the modified total credit limit adapted to be drawn in at least one of the plurality of separate predetermined loan increments.

9. A computer as defined in claim 8, wherein the one or more of the plurality of existing line of credit accounts are associated with one or more of a plurality of demand deposit accounts associated with the consumer;

and the computer program further comprising the instruction of;

loading one or more of the plurality of demand deposit accounts with draws from the one or more of the plurality of existing line of credit accounts in at least one of the plurality of separate predetermined loan increments, a total value of a predetermined loan advance fee being equal to a predetermined fee multiplied by the number of separate predetermined loan increments loaded to the one or more of the plurality of demand deposit accounts.

10. A computer as defined in claim 8, wherein the one or more of the plurality of existing line of credit accounts are associated with one or more of a plurality of prepaid card accounts associated with the consumer;

and the computer program further comprising the instruction of;

loading one or more of the plurality of prepaid card accounts with draws from the one or more of the plurality of existing line of credit accounts in at least one of the plurality of separate predetermined loan increments, a total value of a predetermined loan advance fee being equal to a predetermined fee multiplied by the number of separate predetermined loan increments loaded to the one or more of the plurality of prepaid card accounts.

11. A computer as defined in claim 8, the computer program further comprising the instruction of:

repaying at least a portion of a line of credit balance of one or more of the plurality of existing line of credit accounts responsive to receiving a tax refund associated with the consumer.

12. A computer as defined in claim 8, wherein at least a portion of a line of credit balance of one or more of the plurality of existing line of credit accounts is not due until a tax refund associated with the consumer is received;

and wherein the estimated tax refund is determined and the total credit limit is modified prior to a tax return being filed.

13. A computer as defined in claim 8, wherein modifying includes modifying one or more terms of the one or more of the plurality of existing line of credit accounts.

14. A computer as defined in claim 8, wherein the portion of the estimated tax refund available as borrowing capacity is determined based on underwriting criteria.

15. Non-transitory memory encoded with computer program for adjusting an existing line of credit account, the computer program comprising a set of instructions that, when executed by a computer, causes the computer associated with a credit provider to perform the operations of:

determining whether a consumer has one or more of the plurality of existing line of credit accounts, each of the plurality of existing line of credit accounts adapted to be drawn in at least one of a plurality of separate predetermined loan increments;

determining an estimated tax refund for the consumer responsive to the consumer having one or more of the plurality of existing line of credit accounts;

determining a portion of the estimated tax refund available as borrowing capacity in a number of separate predetermined loan increments; and

modifying the one or more of the plurality of the existing line of credits for the consumer based on the determined portion of the estimated tax refund available as borrowing capacity, the modification including at least an increase or decrease to a total credit limit of the one or more of the plurality of existing line of credits by the number of separate predetermined loan increments, the modified total credit limit adapted to be drawn in at least one of the plurality of separate predetermined loan increments.

16. Non-transitory memory as defined in claim 15, wherein the one or more of the plurality of existing line of credit accounts are associated with one or more of a plurality of demand deposit accounts associated with the consumer;

and the computer program further comprising the instruction of;

loading, by the computer, one or more of the plurality of demand deposit accounts with draws from the one or more of the plurality of existing line of credit accounts in at least one of the plurality of separate predetermined loan increments, a total value of a predetermined loan advance fee being equal to a predetermined fee multiplied by the number of separate predetermined loan increments loaded to the one or more of the plurality of demand deposit accounts.

17. Non-transitory memory as defined in claim 15, wherein the one or more of the plurality of existing line of credit accounts are associated with one or more of a plurality of prepaid card accounts associated with the consumer;

and the computer program further comprising the instruction of;

loading, by the computer, one or more of the plurality of prepaid card accounts with draws from the one or more of the plurality of existing line of credit accounts in at least one of the plurality of separate predetermined loan increments, a total value of a predetermined loan advance fee being equal to a predetermined fee multiplied by the number of separate predetermined loan increments loaded to the one or more of the plurality of prepaid card accounts.

18. Non-transitory memory as defined in claim 15, wherein modifying includes modifying one or more terms of the one or more of the plurality of existing line of credit accounts.

19. Non-transitory memory as defined in claim 15, wherein at least a portion of a line of credit balance of one or more of the plurality of existing line of credit accounts is not due until a tax refund associated with the consumer is received;

wherein the credit provider extends credit to the consumer on an ongoing basis based on the determined estimated tax refund for the consumer; and

wherein the estimated tax refund is determined and the total credit limit is increased prior to a tax return being filed.

20. A computer as defined in claim 15, wherein the portion of the estimated tax refund available as borrowing capacity is determined based on underwriting criteria.