Method and apparatus for mapping sources and uses of consumer funds

• US 8,255,326 B2
• Filed: 07/06/2009
• Issued: 08/28/2012
• Est. Priority Date: 12/29/1999
• Status: Expired due to Fees

• Current Assignee: Western Union
• Original Assignee: Western Union
• Inventors: Compiano, Craig
• Primary Examiner(s): Garg, Yogesh C
• Application Number:
  US12/498,272
• Publication Number:
  US 20090327127A1
• Time in Patent Office: 1,149 Days
• Field of Search: 705/38, 705/39, 705/42, 705/26.1, 705/30, 705/35, 705/36.R, 705/37, 705/40, 705/41, 705/43
• 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 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A bill-paying system includes a customer deposit account which receives periodic payroll deposits of an individual or a couple. A bill-paying service enrolls the individual or couple for a fee, and is authorized to transfer money from the deposit account to the accounts of various creditors. An originating depository financial institution, such as a bank, handles the transfers of money, and such transfers are preferably done electronically. The automated clearing house (ACH) network supports such electronic money transfers. The various bills and debts of the individual or couple come due at times that are asynchronous to their income structure. The bill-paying service is authorized to debit the deposit account for more than the basic minimums due the creditors each month. 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 non-transitory machine-readable medium for bill payment, including sets of instructions stored thereon which, when executed by a machine, cause the machine to:

in a first transfer step, periodically initiate on a funds transfer schedule a debit to a designated deposit account (DDA) belonging to a debtor, wherein the fund transfer schedule comprises at least a portion of a subscription transaction table file, the subscription transaction table file comprising;

information regarding a plurality of transactions for a plurality of subscribers; and

all data necessary for effecting all of the plurality of transactions;

in a second transfer step, receive funds from the DDA to a custody account;

determine an amount of funds and a date that funds are to be transferred from the custody account to a creditor'"'"'s creditor account in order to pay down both interest and principle of a debt owed and accomplish an accelerated repayment of the debt owed to the creditor by the debtor;

determine a transfer method, based on the subscription transaction table file, of whether the amount of funds are to be transferred via an Electronic Funds Transfer (EFT) or a check disbursement;

in a third transfer step, initiating a transfer of funds from the custody account;

create a transaction record of either a disbursement from the custody account to an EFT disbursement account, or a creation of a check, based on the determination of transfer method;

in a fourth transfer step, depositing the transfer of funds with the creditor;

wherein the creditor account includes an associated minimum payment frequency;

wherein the amount of funds to be transferred from the custody account to the creditor account is determined based at least in part on maintaining a minimum balance threshold value in the custody account;

wherein the date that funds are to be transferred from the custody account to the creditor account is determined based at least in part on transferring funds to the creditor account at a greater frequency than the associated minimum payment frequency;

wherein the greater frequency decreases the length of repayment of the debt;

wherein the first transfer step, the second transfer step, the third transfer step, and the fourth transfer step occur asynchronously, based on conditions specified by a trust finder, such that the transfer steps do not occur in that order; and

wherein the trust finder provides a join between parties involved in the bill payment.

2. The non-transitory machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to periodically credit the DDA with a credit on a regular credit schedule.

3. The non-transitory machine-readable medium of claim 2, wherein the credit comprises a direct deposit of a debtor paycheck.

4. The non-transitory machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to determine a second amount and a date that funds from the custody account are to be transferred to a second creditor'"'"'s creditor account to pay a second debt owed to the second creditor by the debtor.

5. The non-transitory machine-readable medium of claim 1, wherein the debt comprises an interest-bearing debt.

6. The non-transitory machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to report to the debtor a transfer of funds from the custody account to the creditor account.

7. The non-transitory machine-readable medium of claim 6, wherein the sets of instructions when further executed by the machine, cause the machine to report to the debtor an adjusted credit term.

8. The non-transitory machine-readable medium of claim 1, wherein the transferring of the funds between the DDA, the custody account, and the creditor account is performed using an originating depository financial institution (ODFI).

9. The non-transitory machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to offer the debtor a campaign product.

10. The non-transitory machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to receive, at the DDA, credits over time that are in excess of a particular debt owed by the debtor to the creditor.

11. The non-transitory machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to provide for a computation of the accelerated re-payment.

12. The non-transitory machine-readable medium of claim 1, wherein the sets of instructions when further executed by the machine, cause the machine to transfer an excess payment to the creditor account that provides a reduction in a total finance charge earned by the creditor and charged to the debtor.

13. The non-transitory machine-readable medium of claim 1, wherein the amount of funds to be transferred from the custody account to the creditor account is further based on pending transactions.

14. The non-transitory machine-readable medium of claim 1, wherein the date that funds are to be transferred from the custody account to the creditor account is further determined based at least in part on a date of pending receipts into the custody account.