Method and system for balance transfer operations
AssigneeCompucredit Intellectual Property Holdings Corp. II
InventorsStephen Drummond, Mark Pendleton
Life of this patent
Estimating the term…
Abstract
A system and method for extending a balance reduction offer to a set of borrowers selected from a pool is provided. A lender, for instance a financial institution issuing credit cards to a pool of borrowers, selects a subset of borrowers based upon a criterion. The balance reduction offer includes a financial incentive to encourage the borrower to accept the offer. When the borrower accepts the offer, the lender credits the account for a payment received. In one embodiment, an issuer of credit cards may employ the invention to facilitate selected borrowers transferring outstanding balances to another credit card. In such an embodiment, the borrower may complete the transaction with the assistance of a cash wire transfer company.
Claims20
For a lender having a pool of borrowers, a method of reducing outstanding borrowed balances, the method comprising the steps of:
- a. selecting a subset from the pool of borrowers, the selection being based upon at least a criterion selected from the group consisting of borrowed balance amount and interest rate;
- b. transmitting a balance reduction offer to each borrower of the subset, wherein the balance reduction offer comprises a financial incentive;
- c. receiving at least a partial payment from at least one borrower from the subset;
- and
- d. crediting an account of the at least one borrower from the subset.
A method for a lender to reduce a total amount due by a pool of borrowers, the method comprising the steps of:
- a. selecting a subset of borrowers from the pool of borrowers to whom a balance reduction offer will be extended, the selection of the subset being based on at least one of a credit score, an outstanding balance and an annual percent interest rate;
- b. extending a balance reduction offer to the subset of borrowers;
- c. extending a financial incentive to accept the balance reduction offer to the subset of borrowers;
- d. crediting an account of a borrower selected from the subset for an amount equal to the financial incentive upon receipt of an acceptance of the balance reduction offer;
- and
- e. receiving a payment from the borrower selected from the subset.
A system for effecting a balance reduction offer, the system comprising:
- a. a module configured to select from a set of borrowers a subset of borrowers characterized by at least one of a credit score below a predetermined credit score threshold, an outstanding balance above a predetermined outstanding balance threshold, an annual interest rate above a predetermined annual interest rate threshold, and combinations thereof;
- b. a module configured to transmit a balance reduction offer to members of the subset of borrowers, wherein the balance reduction offer comprises at least one financial incentive to accept the balance reduction offer;
- c. a module configured to apply the financial incentive to accounts of any members of the subset of borrowers who accept the balance reduction offer;
- and
- d. a module configured to credit the accounts of the any members of the subset of borrowers when the any members of the subset of borrowers transmit a payment.
Dependencies are inferred from the claim text.