Method and system for debt recovery

• US 7,756,789 B2
• Filed: 09/07/2004
• Issued: 07/13/2010
• Est. Priority Date: 09/11/2003
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Welker, Daniel J, Knishinsky, Oren, Reynolds, Anthony P., Magnuson, John F., Haworth, James A., Kobayashi, Sow A.
• Primary Examiner(s): Kazimi; Hani
• Assistant Examiner(s): Rankins; William E
• Application Number:
  US10/935,696
• Publication Number:
  US 20060080236A1
• Time in Patent Office: 2,135 Days
• Field of Search: 705/40
• US Class Current: 705/41
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

According to one embodiment of the invention, a method of debt recovery is provided. The method includes providing a device to a consumer owing a debt to a creditor. The device has a utility that becomes available to the consumer after being activated by the creditor. The method also includes indicating to the consumer that the utility of the device will be activated if the consumer contacts the creditor.

Claims

1. A computer-implemented method for recovering debt from a consumer, comprising:

making a stored-value card available to a consumer, the stored-value card having an associated account and activation protocol and an initial balance, wherein the initial balance in the stored-value card account is determined, using a processor, by the amount of the consumer'"'"'s debt with a creditor;

providing a debt repayment plan to the consumer in response to the contact and activation request from the consumer

electronically activating, by a processor, the stored-value card in response to the consumer'"'"'s acceptance of the debt repayment plan;

receiving a payment from the consumer according to the debt repayment plan, the payment comprising at least a portion of the debt; and

electronically transferring, by a processor, a monetary balance to the stored-value card account associated with the stored-value card upon receipt of the payment.

2. The method of claim 1, wherein the store-value card has an initial balance when made available to the consumer.

3. The method of claim 1, wherein the stored-value card has an initial balance when the consumer agrees to the debt repayment plan.

4. The method of claim 1, wherein the stored-value card has an initial balance when the consumer makes a payment according to the debt repayment plan.

5. The method of claim 1, wherein the stored-value card is a debit card, the debit card operable to deduct an amount of purchase from funds existing in the account.

6. The method of claim 5, wherein an amount may be deducted from the debit card to repay debt according to the debt repayment plan.

7. The method of claim 1, wherein the activation protocol comprises information provided with the stored-value card, the activation protocol containing a phone number the consumer must call to activate the account.

8. The method of claim 1, the stored-value card operable to expire within a predetermined time.

9. The method of claim 1, wherein the amount of money that is transferred to the account when the consumer repays at least a portion of the outstanding debt comprises a percentage of the at least a portion of the outstanding debt repaid by the consumer.

10. The method of claim 1, wherein the stored-value card is operable to enable the consumer to make purchases from a plurality of vendors.

11. The method of claim 1, wherein the initial balance is transferred to the stored-value card by transferring money to an account associated with the stored-value card after the consumer agrees to the debt repayment plan.

12. The method of claim 1, wherein the initial balance is transferred to the stored-value card account after the consumer makes at least one payment under the debt repayment plan.

13. The method of claim 1, wherein the stored-value card is operable to withdraw funds from automated teller machines.

14. The method of claim 1, wherein the stored-value card is a prepaid phone card.

15. The method of claim 1, wherein the stored-value card is a gift card issued by a merchant.

16. A computer-implemented method for offering a debt repayment plan to a consumer, comprising:

making a gift card with an initial balance available to a consumer, the gift card having an associated protocol, wherein the initial balance in the gift card is determined, using a processor, by the amount of the consumer'"'"'s debt with a creditor;

providing a debt repayment plan to the consumer in response to a contact and activation request from the consumer; and

electronically activating, using a processor, the gift card in response to the contact and activation request from the consumer;

receiving a payment from the consumer according to the debt repayment plan, the payment comprising at least a portion of the debt; and

making at least one additional gift card available to the consumer upon receipt of the payment.

17. The method of claim 16, wherein the gift card operable to make purchases at a vendor that accepts credit cards for payment.

18. The method of claim 16, further comprising the consumer agreeing to the debt repayment plan.

19. The method of claim 18, further comprising:

establishing a consumer account corresponding to the debt repayment plan;

the consumer making at least one payment according to the debt repayment plan; and

making a stored-value card available to the consumer, the stored-value card corresponding to the consumer account.

20. The method of claim 19, wherein the stored-value card has an initial balance.

21. The method of claim 20, wherein the initial balance is determined by the amount of the at least one payment.

22. The method of claim 19, wherein the stored-value card is affiliated with a major credit card company.

23. The method of claim 19, wherein the stored-value card is a debit card operable to deduct funds from the consumer account when the consumer makes a purchase.

24. The method of claim 19, wherein the stored-value card is a debit card operable to deduct funds from the consumer account when the consumer withdraws funds from an automatic teller machine.

25. The method of claim 20, wherein funds may be deducted from the debit card to repay any debt carried in the account.

26. The method of claim 18, wherein at least one additional gift card is made available to the consumer when the consumer makes at least one payment according to the debt repayment plan.

27. The method of claim 26, wherein the at least one additional gift card has a stored-value equal to a percentage of the amount of the at least one payment.

28. The method of claim 16, wherein the activation protocol is comprised of a sticker removably affixed to the gift card.

29. The method of claim 16, wherein the initial balance on the gift card is determined by the amount of the outstanding debt.

30. The method of claim 16, wherein the gift card is a prepaid phone card.

31. A computer-implemented method of offering a debt recovery plan, comprising:

providing a card, with an initial balance, to a consumer owing a financial debt to a creditor, the card associated with an account established to give the consumer access to communications services after the creditor initiates an activation of the account, wherein the initial balance in the card is determined, using a processor, by the amount of the consumer'"'"'s debt with the creditor;

indicating to the consumer that activation of the account will be initiated if the consumer contacts the creditor;

participating in a communications session initiated by the consumer over a network, wherein a debt repayment plan is provided to the consumer during the communications session; and

electronically activating, using a processor, the account in response to the consumer'"'"'s participation in the communications session.

32. The method of claim 31, wherein the account is to be expired at a predetermined time period.

33. The method of claim 31, wherein the account associated with the card is established to be used for communication with only the creditor prior to the activation of the account.

34. The method of claim 31, wherein indicating to the consumer that activation of the account will be initiated if the consumer contacts the creditor comprises indicating to the consumer that activation of the account will be initiated if the consumer contacts the creditor within a predetermined time period.

35. The method of claim 31, wherein the card is a stored-value card.

36. The method of claim 31, wherein the card is a gift card.

37. The method of claim 31, wherein the card is a prepaid phone card.