Credit card collection strategy model
AssigneeFirst USA Bank, N.A.
InventorsEric Kosiba, Scott Smallwood
Life of this patent
Estimating the term…
Abstract
The present invention is a computerized collection strategy model for use in collecting payments from delinquent accounts. The computerized collection strategy model estimates for each possible collection strategy, how much will be paid on each account in response to that collection strategy, estimates the amount of resources to be expended in the execution of that collection strategy, and recommends a particular collection strategy for each account that optimizes the use of the available collection resources.
Claims25
An automated method using a computer for determining a collection strategy for collecting payments from a delinquent consumer for debts owed by said consumers based on a credit card debt or consumer debt comprising the steps of:
- identifying a specific population of said consumers;
- automatically defining at least one strategy response category, for each billing cycle of said delinquent consumer's account, which groups said consumer by similar response characteristics;
- defining at least one characteristic for grouped consumers which causes them to have similar response characteristic;
- and
- assigning individual consumers from said specific population to the at least one strategy response category based on a nexus between the characteristic and the individual consumers.
An automated method using a computer for determining a collection strategy for collecting payments from delinquent consumers, the method comprising the steps of:
- automatically defining a collection strategy for each billing cycle of said delinquent consumer's account. which groups said consumer by similar response characteristics,
- estimating for each consumer of a group, the consumer's response to the collection strategy;
- and
- categorizing the consumer based on their estimated response to the collection strategy.
A computerized system for recommending collection strategies to use on delinquent accounts the system comprising:
- a computer;
- and
- a computer program, the computer program being executable on the processing unit and adapted to accept and process historical collection data, automatically estimating possible consumer responses to various collection strategies, which automatically groups said consumer by similar response characteristics;
- and recommending a collection strategy based on said estimated responses.
An automated method using a computer to optimize utilization of collection resources comprising the steps of:
- providing a plurality of specific collection strategies;
- automatically defining at least one strategy response category, for each billing cycle of said delinquent consumer's account, which groups said consumer by similar response characteristics;
- providing historical data related to a consumer's prior responses to said collection strategies used on said consumer;
- estimating said consumer's response to each of the plurality of collection strategies in view of said historical data;
- estimating the cost associated with using each of the plurality of collection strategies on said consumer;
- and
- determining a collection strategy to use on said consumer that optimizes the utilization of collection resources based at least in part on the estimated cost.
An automated method using a computer for determining recommended strategies to be used on delinquent accounts comprising the steps of:
- defining a collection strategy;
- automatically defining at least one strategy response category, for each billing cycle of said delinquent consumer's account, which groups said consumer by similar response characteristics;
- determining a relationship between said defined collection strategy and said consumer's experience;
- estimating a payment amount responsive to said consumer's experience;
- estimating the amount of resources expended during the collection strategy;
- and
- determining a collection strategy for each account that maximizes the available collection resources in view of the estimated payment.
Dependencies are inferred from the claim text.