Method and system for extending credit with automated repayment
View Patent ↗A system and method for extending a firm offer of credit contingent upon receiving a one-time authorization to execute recurring automatic withdrawals from a deposit account is provided. In providing the one-time authorization to execute recurring automatic withdrawals, a prospective borrower may elect from a plurality of automatic withdrawal repayment options. One such option is electronic fund transfer, such as the initiation of a withdrawal entry into the Automated Clearing House network. A second option is by the remote creation of a paper negotiable instrument, which is then converted into an electronic substitute check capable of electronic routing. Upon receiving the one-time authorization, the lender may make recurring automatic withdrawals from the borrower's deposit account.
1. A method, operable with one or more processors to control the one or more processors to implement a process of providing credit, comprising:
providing an extension of credit application content with which an applicant may submit a request for credit, the extension of credit application comprising a plurality of repayment options, wherein at least one of the plurality of repayment options comprises at least a recurring withdrawal executed by electronic funds transfer and at least another of the plurality of repayment options comprises a recurring withdrawal executed by a remotely created paper negotiable instrument;
verifying an authorization to execute recurring withdrawals from a deposit account is received in conjunction with a completed extension of credit application;
extending a firm offer of credit contingent upon the verifying the authorization to execute recurring withdrawals from the deposit account is received, wherein the authorization comprises a selection from the plurality of repayment options, further comprising the steps of offering the withdrawal executed by electronic funds transfer at a first price and offering the withdrawal executed by the remotely created paper negotiable instrument at a second price, wherein the first price is less than the second price.
2. The method of claim 1 , wherein the electronic funds transfer comprises a withdrawal entry in an automated clearing house network from the deposit account.
3. The method of claim 2 , wherein the deposit account is held by a receiving depository financial institution.
4. The method of claim 3 , wherein the withdrawal entry is executed by an originating depository financial institution.
5. The method of claim 1 , wherein the remotely created paper negotiable instrument comprises a remote check creation.
6. The method of claim 1 , further comprising the step of denying credit where the one-time authorization is not obtained.
7. The method of claim 1 , wherein the deposit account is configured to receive direct deposit transactions.
8. The method of claim 1 , wherein at least one of the plurality of repayment options comprises a conversion of a paper check at a point of sale into an electronic debit.
9. The method of claim 1 , further comprising the step of extending additional credit upon obtaining the one-time authorization to execute recurring automatic withdrawals by electronic funds transfer.
10. A system for extending credit, the system comprising:
a. a network information server configured to deliver browser readable content to a client terminal having a browser in communication with an Internet, the network information server providing at least extension of credit application content to the browser with which an applicant may submit a request for a credit, wherein the extension of credit application content comprises a plurality of repayment options, wherein at least one of the plurality of repayment options comprises at least a recurring withdrawal executed by electronic funds transfer and at least another of the plurality of options comprises a recurring withdrawal executed by a remotely created paper negotiable instrument; b. a processing module operable with the network information server, the processing module being configured to verify that at least an authorization to execute recurring withdrawals from a deposit account is received in conjunction with a completed extension of credit application; and c. a credit extension module operable with the network information server, the credit extension module being configured to authorize an extension of credit only when the processing module verifies that the at least an authorization to execute recurring withdrawals from the deposit account is received; d. wherein the withdrawal executed by electronic funds transfer is presented at a first price and the withdrawal executed by the remotely created paper negotiable instrument is offered at a second price, wherein the first price is less than the second price.
11. The system of claim 10 , wherein the withdrawal executed by remote electronic funds transfer comprises a withdrawal entry in an automated clearing house network.
12. The system of claim 11 , wherein the deposit account is held by a receiving depository financial institution.
13. The system of claim 12 , wherein the withdrawal entry is executed by an originating depository financial institution.
14. The system of claim 10 , wherein the remotely created paper negotiable instrument comprises a remote check creation.
15. The system of claim 10 , wherein the credit extension module is configured to deny credit wherein the processing module fails to verify the authorization to execute recurring withdrawals from the deposit account is received.
16. The system of claim 10 , wherein the deposit account is configured to receive direct deposit transactions.
17. The system of claim 10 , wherein at least one of the plurality of repayment options comprises a conversion of a paper check at a point of sale into an electronic debit.
18. The system of claim 10 , wherein the credit extension module is further configured to extend additional credit upon obtaining the one-time authorization to execute recurring automatic withdrawals by electronic funds transfer.