System, program product, and method for debit card and checking account autodraw

• US 8,341,021 B2
• Filed: 09/08/2010
• Issued: 12/25/2012
• Est. Priority Date: 04/04/2008
• Status: Active Grant

• Current Assignee: Pathward National Association
• Original Assignee: MetaBank (Meta Financial Group Incorporated)
• Inventors: Ahlers, Rebecca, Sorbe, Trent, Crowe, Andrew B, Galit, Scott H
• Primary Examiner(s): Zeender, Ryan
• Assistant Examiner(s): ORTIZ ROMAN, DENISSE Y
• Application Number:
  US12/877,490
• Publication Number:
  US 20110119140A1
• Time in Patent Office: 839 Days
• Field of Search: None
• US Class Current: 705/17
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• 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

Abstract

A consumer is prequalified for a line of credit attached to a checking account by a lending institution computer responsive to consumer underwriting data. The lending institution computer makes available draws to the line of credit line in an authorization stream for a proposed payment from the checking account. When the line of credit is accessed, the checking account is credited with an additional value equal to one or more preselected loan increments so that the account then has a new amount totaling a previous amount plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or equals the value of a proposed payment. Next, a new value for the line of credit balance available is determined, accounting for value credited to the checking account and a preselected loan advance fee for each loan increment credited to the account.

Claims

1. A computer-implemented method of accessing a line of credit, the method comprising:

prequalifying a consumer for a line of credit associated with a checking account by a lending institution computer responsive to consumer underwriting data and predetermined qualification parameters to thereby convert consumer underwriting data into line of credit data, the line of credit data including a total loan value, a preselected loan increment, a preselected loan advance fee associated with each preselected loan increment, an available loan value and a line of credit balance available;

making available draws to the line of credit in an authorization stream for a proposed payment when the proposed payment is greater than an amount of funds in the checking account;

crediting the checking account with one or more preselected loan increments so that the funds in the checking account totals a previous amount of funds in the checking account plus one or more preselected loan increments and so that the new amount of funds in the checking account at least equals the proposed payment; and

updating the line of credit data to reflect the addition of the funds to the checking account to fund the proposed payment, the updating including the steps of;

determining a new available loan value for the line of credit, the new available loan value being a previous available loan value minus the one or more preselected loan increments credited to the checking account and minus one or more preselected loan advance fees associated with each of the one or more preselected loan increments credited to the account, and

determining a new line of credit balance, the new line of credit balance being a previous line of credit balance plus a value equal to the one or more preselected loan increments credited to the checking account and plus a value equal to one or more preselected loan advance fees associated with each of the one or more preselected loan increments credited to the account.

2. A computer-implemented method of claim 1, wherein the proposed payment involves one or more of the following:

a check, an electronic check, a debit card, an electronic bill payment, an automated teller machine (ATM) withdrawal, and a wire transfer.

3. A computer-implemented method of claim 2, wherein the lending institution comprises a first financial institution, the first financial institution being associated with the line of credit, and wherein the checking account is associated with a second financial institution so that a first financial institution can offer line of credit services for a checking account associated with a second financial institution.

4. A computer-implemented method of claim 3, wherein the lending institution computer associated with the first financial institution sends the available loan data to a second computer associated with the second financial institution so that the second financial institution computer can make a determination regarding the line of credit for a proposed payment in real time.

5. A computer-implemented method of claim 3, wherein a core banking system of the first financial institution is integrated into a core banking system of the second financial institution so that a second computer associated with the second financial institution can make a determination regarding the line of credit for a proposed payment in real time.

6. A computer-implemented method of claim 1, wherein the proposed payment is payment for a purchase of goods;

and the computer-implemented method further includes displaying an account activity statement, including a purchase, on a display device to thereby provide a visual representation of a value associated with the checking account being exchanged for goods.

7. A computer-implemented method of claim 1, wherein the proposed payment involves a debit card, and the computer-implemented method further includes receiving data by the lending institution computer from a card reader device associated with a point of sale terminal responsive to the card reader device reading data from the debit card and modifying the data to include point of sale data to communicate with the lending institution computer.

8. A computer-implemented method of claim 1, wherein the making available step includes determining a number of separate preselected loan increments to be added to the checking account so that the number of separate preselected loan increments multiplied by a value of one preselected loan increments and plus a value associated with the checking accounts exceeds a value of the proposed purchase.

9. A computer-implemented method of claim 1, wherein a difference between the new amount of funds in the checking account and the proposed payment is no greater than a value of a single preselected loan increment.

10. A computer-implemented method of claim 8, wherein a difference between the new amount of funds in the checking account and the proposed payment is no greater than a value of a single preselected loan increment.

11. A computer-implemented method of accessing a line of credit, the method comprising:

prequalifying, by a computer associated with a first lending institution to define a first lending institution computer, a consumer for a line of credit response to consumer underwriting data and predetermined qualification parameters to thereby convert consumer underwriting data into line of credit data, the line of credit data including a total loan value, a plurality of separate preselected loan increments, a preselected loan advance fee associated with each of the plurality of preselected loan increments, an available loan value, and a line of credit balance, the line of credit being associated with checking account managed by a second financial institution positioned remote from the first lending institution;

configuring, by first lending institution computer, the line of credit to be associated with a checking account managed by a second financial institution positioned remote from the first lending institution responsive to receiving checking account data from a second computer associated with the second financial institution to define a second financial institution computer, the line of credit further being configured to be drawn in one or more of the plurality of separate preselected loan increments;

crediting, by first lending institution computer, the checking account with the second financial institution with one or more of the plurality of preselected loan increments responsive to receiving data from the second financial institution computer that a proposed payment is greater than an amount of funds in the checking account so that a total value of the one or more of the plurality of preselected loan increments plus a value associated with the one or more of the plurality of checking accounts exceeds a value of the proposed purchase; and

updating, by first lending institution computer, the line of credit data to reflect the addition of the funds to the checking account to fund the proposed payment, the updating including;

determining a new available loan value for the line of credit, the new available loan value being a previous available loan value minus the one or more of the plurality of preselected loan increments credited to the checking account and minus preselected loan advance fee for each of the one or more of the plurality of preselected loan increments credited to the checking account, and

determining a new line of credit balance, the new line of credit balance being a previous line of credit balance plus the total value of the one or more of the plurality of preselected loan increments credited to the checking account and plus a value equal to the preselected loan advance fee for each of the one or more preselected loan increments credited to the checking account with the second financial institution.

12. A computer-implemented method of claim 11, wherein a difference between the one or more of the plurality of preselected loan increments credited to the checking account and the value associated with the one or more of the plurality of checking accounts is no greater than a value of a single preselected loan increment.