System, program product, and method for debit card and checking account autodraw
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.
1. A computer-implemented method for accessing a plurality of line of credit accounts, the method comprising the steps of:
establishing, by a computer associated with a lending institution to define a lending institution computer, a plurality of line of credit accounts associated with a plurality of checking accounts, the plurality of line of credit accounts configured to be drawn in predetermined loan increments each being equal in value, the plurality of line of credit accounts further having a predetermined loan fee for each of the predetermined loan increments;
determining by the lending institution computer, responsive to a receipt of a request for authorization for an amount greater than a first value associated with one of the plurality of checking accounts, a number of separate predetermined loan increments to be drawn from one of the plurality of line of credit accounts associated with the one of the plurality of checking accounts, the determined number of predetermined loan increments being so that a second value of the one of the plurality of checking accounts will at least equal the value of the request for authorization; and
crediting, by the lending institution computer, the one of the plurality of checking accounts with the determined number of separate predetermined loan increments from the one of the plurality of line of credit accounts so that the one of the plurality of checking accounts equals the second value, the second value of the one of the plurality of checking accounts being the first value plus a value equal to the determined number of separate predetermined loan increments.
2. The method as defined in claim 1 , wherein the method further comprises the step of:
authorizing, via an electronic communication network, the request for authorization.
3. A method as defined in claim 1 , wherein the request for authorization is responsive to a proposed payment involving one or more of the following: an electronic check, a debit card, an electronic bill payment, an automated teller machine (ATM) withdrawal, and a wire transfer.
4. A method of claim 1 , wherein the lending institution is a first financial institution, the plurality of line of credit accounts are controlled by the first financial institution, and wherein one or more of the plurality of checking accounts are controlled by a second financial institution so that the first financial institution is adapted to offer line of credit services for the one or more of the plurality of checking accounts controlled by the second financial institution.
5. A method as defined in claim 1 , wherein the method further comprises:
determining, by the lending institution computer, a new value of a line of credit balance, the new value being a previous value of the line of credit balance plus the value equal to the determined number of separated predetermined loan increments credited to the one or more of the plurality of checking accounts plus a total value of the predetermined loan advance fee, the total value of the predetermined loan advance fee being equal to the predetermined loan advance fee multiplied by the determined number of separate predetermined loan increment.
6. A method as defined in claim 4 , the method further comprising the step of:
updating, by the lending institution computer associated with the first financial institution, a computer associated with the second institution with a line of credit balance of the one of the plurality of line of credit accounts.
7. A method as defined in claim 5 , the method further comprising the step of:
repaying at least a first portion of the new value of the line of credit balance responsive to an automatic deposits being available, the difference between the new value of the line of credit balance minus the first portion of the new value of line of credit balance repaid thereby defining an unpaid balance, the repaying being responsive to receiving the first portion from a computer associated with the second financial institution.
8. A method as defined in claim 1 , wherein the difference between the value of the authorization request and the second value of the one or more of the plurality of checking accounts being no greater than the value of one of separate predetermined loan increments.
9. A method as defined in claim 1 , the method further comprising the step of:
deducting, by the lending institution computer, at least a first portion of the new value of the line of credit balance responsive to an automatic deposit being available for the one of the plurality of checking accounts, the difference between the new value of the line of credit balance minus the first portion of the new value of line of credit balance repaid thereby defining an unpaid balance.
10. A computer associated with a lending institution to define a lending institution for accessing a plurality of line of credit accounts, the lending institution computer comprising:
one or more input/output units to facilitate communication via an electronic communication network;
one or more processors for processing data associated with a lending institution; and
non-transitory computer-readable memory encoded with computer program and operable by the one or more processors, the one or more computer programs comprising the instructions of:
establishing a plurality of line of credit accounts associated with a plurality of checking accounts, the plurality of line of credit accounts configured to be drawn in predetermined loan increments each being equal in value, the plurality of line of credit accounts further having a predetermined loan fee for each of the predetermined loan increments;
determining responsive to a receipt of a request for authorization for an amount greater than a first value associated with one of the plurality of checking accounts, a number of separate predetermined loan increments to be drawn from one of the plurality of line of credit accounts associated with the one of the plurality of checking accounts, the determined number of predetermined loan increments being so that a second value of the one of the plurality of checking accounts will at least equal the value of the request for authorization; and
crediting, by the lending institution computer, the one of the plurality of checking accounts with the determined number of separate predetermined loan increments from the one of the plurality of line of credit accounts so that the one of the plurality of checking accounts equals the second value, the second value of the one of the plurality of checking accounts being the first value plus a value equal to the determined number of separate predetermined loan increments.
11. The computer as defined in claim 10 , wherein the crediting is responsive to the determined number of predetermined loan increments being less than or equal to a preauthorized loan amount selected by a borrower associated with the one of the plurality of line of credit accounts, wherein the one of the plurality of line of credit accounts being configured such that when the determined number of predetermined loan increments is greater than the preauthorized loan amount, borrower authorization is required prior to crediting the one of the plurality of checking accounts with the determined number of separate predetermined loan increments.
12. The computer as defined in claim 10 , wherein the one or more computer program further comprises the instruction of:
authorizing, via an electronic communication network, the request for authorization.
13. The computer as defined in claim 10 , wherein the request for authorization is responsive to a proposed payment involving one or more of the following: an electronic check, a debit card, an electronic bill payment, an automated teller machine (ATM) withdrawal, and a wire transfer.
14. The computer as defined in claim 10 , wherein the lending institution is a first financial institution, the plurality of line of credit accounts are controlled by the first financial institution, and wherein one or more of the plurality of checking accounts are controlled by a second financial institution so that the first financial institution computer is adapted to offer line of credit services for the one or more of the plurality of checking accounts controlled by the second financial institution.
15. A computer as defined in claim 10 , the one or more computer programs further comprising the instructions of:
determining a new value of a line of credit balance, the new value being a previous value of the line of credit balance plus the value equal to the determined number of separated predetermined loan increments credited to the one or more of the plurality of checking accounts plus a total value of the predetermined loan advance fee, the total value of the predetermined loan advance fee being equal to the predetermined loan advance fee multiplied by the determined number of separate predetermined loan increment.
16. A computer as defined in claim 14 , the one or more computer programs further comprising the instructions of:
updating, by the lending institution computer associated with the first financial institution, a computer associated with the second institution with a line of credit balance of the one of the plurality of line of credit accounts.
17. A computer as defined in claim 15 , the one or more computer programs further comprising the instructions of:
repaying at least a first portion of the new value of the line of credit balance responsive to an automatic deposits being available, the difference between the new value of the line of credit balance minus the first portion of the new value of line of credit balance repaid thereby defining an unpaid balance, the repaying being responsive to receiving the first portion from a computer associated with the second financial institution.
18. A computer as defined in claim 10 , wherein the difference between the value of the authorization request and the second value of the one or more of the plurality of checking accounts being no greater than the value of one of separate predetermined loan increments.
19. A computer as defined in claim 10 , the one or more computer programs further comprising the instructions of:
deducting at least a first portion of the new value of the line of credit balance responsive to an automatic deposit being available for the one of the plurality of checking accounts, the difference between the new value of the line of credit balance minus the first portion of the new value of line of credit balance repaid thereby defining an unpaid balance.
20. A computer as defined in claim 14 , the one or more computer programs further comprising the instructions of:
determining a new value of a line of credit balance, the new value being a previous value of the line of credit balance plus the value equal to the determined number of separated predetermined loan increments credited to the one or more of the plurality of checking accounts plus a total value of the predetermined loan advance fee, the total value of the predetermined loan advance fee being equal to the predetermined loan advance fee multiplied by the determined number of separate predetermined loan increments.