Abstract:
A web-based, collection law-compliant debt collection system and methods for using the same are disclosed. At its center, the system comprises the databases, processors, and software that form system data storage, website and database management servers, and automatic webpage generators. The center is accessible through the Internet via landline or wireless connections. The system connects all kinds of users and services and enables them to collect debts, negotiate settlements, resolve disputes, exchange information, advertise legal or financial services, and trade debts in a fair, open, and law-compliant manner.

Description:
FIELD OF THE INVENTION 
       [0001]    The present invention relates generally to debt collection system and more particularly to a web-based system and method for debt collection. 
       BACKGROUND OF THE INVENTION 
       [0002]    Debt collection is a multi-billion-dollar industry that directly affects a large number of consumers. To protect the consumers from unlawful debt collection practices, the U.S. Fair Debt Collection Practices Act (FDCPA) and similar laws at state level are enforced. However it is very challenging for small entity creditors, such as individual landlords to whom their formal tenants owe rents, to collect debts with their limited resources. Small entity creditors usually lack the expertise and experience in debt collection, in compliance with the laws, and in legal procedure for judgment. Furthermore, their debt collection would make less business sense because of high costs for using debt collection services or other legal services. Besides, small entity creditors usually do not have easy access to competitive debt trade or collection services. These disadvantages make the debt collection inefficient or unpractical for small creditors, including the large utility companies with a lot of small debt accounts, who would then unwillingly give up. 
         [0003]    The FDCPA restricts direct communication of creditors or debt collectors with individual debtors if the latter decline. It is therefore quite challenging, for large or small creditors alike, to collect debts directly from the uncooperative debtors, especially those transient ones who conceal their new contact or location information. For the lack of such information, the creditors or debt collectors are even unable to collect monetary judgments after expensive, time-consuming litigation. Moreover, the FDCPA forbids creditors from disclosing the information about debtors&#39; debts to any third parties without debtors&#39; consent. Since the FDCPA significantly reduces creditors&#39; debt collection power, it is desirable to build a fair, open, and accessible collection system overcoming the obstacles while complying with all the laws. 
         [0004]    It would be helpful to connect creditors and the people searching the names of individuals through the Internet for information or curiosity. Among them are debtors themselves, their relatives, neighbors, friends, attorneys, or employers, and authorized entities who conduct their background checks. The concern for their online reputation would motivate debtors to search online; and the communication initiated or authorized by debtors would always be in compliance with the FDCPA. Moreover, without any disclosure about debts, the acquisition of debtors&#39; location information from third parties is allowed by the law. Furthermore it would be mutually beneficial that the authorized entities, such as prospective landlords, share and exchange relevant information with creditors. In the prior art, however, no system provides such useful connections. 
         [0005]    Therefore, it is desirable to build a FDCPA-compliant, web-based system that enables creditors to store the information about debtors and debts, enables the debt information to be fully accessible and searchable except the debtors&#39; identities, enables debt purchasers, service providers, or debtors to contact creditors, enables the names of the debtors to be publicly searchable without indications of their debts, enables creditors to exchange information about debtors with authorized entities, and enables debtors to dispute or negotiate with creditors. Such a system would establish cost-efficient, effective communication, information exchange, and business between creditors and interested third parties and encourage debtors to solve their debt problems with creditors. 
         [0006]    Accordingly, these are the objects and advantages of the present invention. Further objects and advantages will become apparent after consideration of the following detailed description and drawings. 
       SUMMARY OF THE INVENTION 
       [0007]    A web-based system allows creditors to input and store debtors&#39; account information and enables all users—creditors, collection service providers, debt purchasers, legal service professionals, information querists, and debtors—to communicate with each other for collecting debts, negotiating settlements, resolving disputes, trading debts, exchanging information, and providing legal or financial services in fair, open, and FDCPA-compliant manners. At its center, the system comprises the computer databases, hardware, and software that form data storage, servers, automatic webpage generators, and landline or wireless connection with the Internet. 
         [0008]    The webpage generator automatically creates one webpage for each debtor recorded in the database. The webpages for persons or individuals do not reveal their debt information other than their names and locations while the ones for business entities disclose detailed information. All the webpages are searchable at least by the unique queries—the names of either persons or entities—on the Internet or the home page of the system&#39;s website. Creditors can be contacted through hyperlinks in the webpages. The creditors who have one same debtor automatically form closer relationships, as “friends”, to exchange or consolidate the debtor&#39;s information. Authorized querists may submit debtor&#39;s written authorizations to and exchange debtors&#39; information with creditors. However, unauthorized querists cannot obtain the debt information from the system except providing creditors with certain information about the debtors that they know well as “neighbors.” Debtors may initiatively communicate with creditors to pay their debts, make payment plans, or negotiate settlements using the hyperlinks. After the debt problems are solved, the creditors submit requests for the removals of related debt records. The system processes the requests, removes the records from the database, and updates the corresponding webpages. When all the debt records associated with a debtor are removed, the webpage associated with the name of the debtor is deleted. Debtors can dispute their debts through a forum of the system by initiating new topics or “threads” on the debts and submitting their evidence. The forum is open to all registered users of the system. Collection and legal service professionals are allowed to access the information about the debt accounts in dispute and to comment on the disputes. All registered users except debtors can poll on which side in a dispute more trustful. If predetermined critical votes are met in favor of a debtor, the relevant debt record is removed from the system with no creditor&#39;s consent provided that the creditor fails to submit new evidence to support the original claim. Debt purchasers may login the system to search all the debt records except the persons&#39; names. There are advertisement spaces on the webpages, open to the public and preferable to debts related services, such as debt collectors, lawyers, and financial advisors. And legal information or advice is provided by the system to users during all the communications. 
         [0009]    The following detailed description together with the accompanying drawings will provide a better understanding of the nature and advantages of the present invention. 
     
    
     
       BRIEF DESCRIPTION OF DRAWINGS 
         [0010]      FIG. 1  depicts central components of a debt collection system according to an embodiment of the present invention. 
           [0011]      FIG. 2  depicts a debt collection system according to an embodiment of the present invention. 
           [0012]      FIG. 3  depicts alternative configuration of the central components shown in  FIG. 1  according to an embodiment of the present invention. 
           [0013]      FIG. 4  depicts alternative central components of a debt collection system according to an embodiment of the present invention. 
       
    
    
     DETAILED DESCRIPTION 
     Preferred Embodiment 
       [0014]      FIG. 1  depicts exemplary components of a debt collection center  10  according to a preferred embodiment of the present invention. Debt collection center  10  is established to run an open yet FDCPA-compliant collection system and implemented with a database and computer hardware and software. As shown in  FIG. 1 , debt collection center  10  generally comprises a web server  12 , a database management server  14 , a database  16 , an automatic webpage generator  18 , a forum server  20 , and a webpage storage  22  consisted of a computer storage medium or memory. Web server  12 , having a means for accessing the Internet (not shown, such as a modem, network card, or other similar networking device) to transfer data via landline or wireless connection, receives debt data and handles online queries or requests. The debt data are verified or consolidated through management server  14  and are stored into database  16 ; and the requests are forwarded to management server  14  or forum server  20  if necessary. The receipt of the debt data triggers automatic webpage generator  18  to create new webpages, which are stored to webpage storage  22  and posted on the Internet through web server  12 . The created webpages are FDCPA-compliant by the use of different predetermined templates depending on entities. 
         [0015]      FIG. 2  depicts a debt collection system according to a preferred embodiment of the present invention. Through web server  12 , debt collection center  10  is in communication with a creditor  24 , a debtor  26 , a querist  28 , a forum  30 , a collection or legal service  32 , and a debt purchaser  34 . Using a web browser, creditor  24  subscribes or registers to collection center  10  by a password protection or user authentication scheme and enters the data of one or more debtors&#39; accounts into database  16  through web server  12  and management server  14 . For the creditors having the same debtor, a close group relationship, as of “friends,” is automatically established to share, exchange, distinguish or consolidate all the information about the debtor among the group. The data entries trigger off the creation of new webpages or the update of existing ones. 
         [0016]    One of predetermined web templates is automatically chosen for the creation of a new webpage depending on debtors. If a debtor is a person, the webpage discloses the debtor&#39;s full name and last known location or where the debt incurred (i.e. city/county, state and zip code), with no indication of the debt, neither explicitly nor implicitly. On the webpage, there is a hyperlink to a HTML form which inputs and attachments are sent to the creditor through email or email-forwarding; its hypertext indicates that someone holds information about the named one or that someone is seeking communication with the named one. However, if the debtor is a company, the webpage discloses more information about it and its debt. Therefore, such created webpages are FDCPA-compliant and searchable by the names of debtors and maintain accessible communication channels to corresponding creditors. On the HTML form and by its radio button, drop-down list, select box, or check box, users are required to choose one of the predefined categories—being the person or entity that the webpage is about, holding information about the person or entity, or seeking information about the person or entity. And a completed form is validated upon submission by requiring certain document as an attachment to support the user&#39;s claim; the creditor is also advised by debt collection center  10  about how to respond accordingly for compliance with laws. 
         [0017]    Because of their curiosity about or concern for the information about themselves online, debtors  26  may search the Internet for their own names with web browsers, and find the webpages associated with their names. The debtors may initiate communication with creditors, using the hyperlinks on the webpages, to obtain more information or request the creditors to remove the webpages. At the beginning of the communications, the debtors may be asked to identify themselves by providing collection center  10  with certain personal information, such as last 4 digits of their social security numbers, which is verified by matching the information stored in database  16 . The debtors may solve their debt problems by paying their debts or negotiating payment plans or settlements with the creditors. Upon the completion of the payment or settlements, the creditors can submit requests for removal of the corresponding debt accounts or records from database  16 . The requests are received at web server  12  and passed to management server  14  for processing. After certain verification and authorization processes, database  16  is updated by deleting the corresponding debt records. Accordingly the associated webpages are updated by webpage generator  18 , in response to the database updating, by deleting the corresponding hyperlinks or removing the webpages as whole if all the hyperlinks thereon are deleted. Therefore, the debt collection system can have debtors well informed with no direct calls and enable them to initiate initiatively the communications with their creditors about their debts at their convenience. 
         [0018]    Debtors  26  may openly dispute their debts through forum  30  hosted by debt collection center  10 . The forum is similar to the Internet forums or message boards as well-known in the art but only open to the subscribed or registered users of the debt collection system. Forum server  14  creates and organizes different topics or “threads,” which are archived in webpage storage  22 . Only can a registered debtor initiate a topic or thread on the debt; and the debtor&#39;s initiation authorizes the system to allow the creditor to disclose detailed debt information on the forum. Both sides are allowed to post their evidence relating to the debt account in dispute. Upon request, a system administrator may decide whether to remove the disputed account basing on the evidence. Also collection or legal service  32  and debt purchaser  34  are allowed to comment or advise on the forum. Basing on the posted evidence and the experts&#39; comments or opinions, all registered users except debtors can poll on whether the debt account in dispute should be removed. When predetermined critical votes are reached in favor of the debtor, the disputed account is removed by collection center  10  without the creditor&#39;s consent provided that there is no new evidence to support the creditor after the poll. 
         [0019]    Querist  28  could be anyone who is interested in searching the Internet for information with queries of the names of persons or entities, including a debtor&#39;s relative, friend, neighbor, or coworker or an authorized person conducting a background check for the purpose of housing, employment or loan. At the beginning of the communication with a creditor through a hyperlink on a webpage, querist  28  is required to classify his or her self by choosing one of the predefined categories shown on the HTML form and submit a supporting document as required. An authorized querist, such as a prospective landlord having an application from a prospective tenant, is required to attach a copy of a written authorization and send it to the creditor by submission of the form. After receiving the proof of authorization, the creditor can fully disclose the information about the debtor and/or debt to the querist without violating the FDCPA. Such information exchange and disclosure would benefit both sides: the creditor can obtain current location information about the debtor and the querist can inquire the debt or background information. After the communication, the creditor may update the corresponding debt account. However, an unauthorized querist who does not have or submit any written authorizations would be treated only as a “neighbor” or friend of the debtor and be allowed to provide certain information about the debtor but not acquire any debt information. 
         [0020]    Collection or legal service  32  represents a variety of collection or legal service providers or professionals, such as debt collection companies, financial advisors, lawyers, or skip tracing professionals. In the debt collection system, such companies or professionals may advertise their services in the advertisement spaces of the webpages, provide their services for creditors or debtors, and provide their judgment and opinions on forum  30 . On the basis of the debtors&#39; account information, the debt collection system enables collection or legal service  32  to target the prospective clients in preferred areas or with selected attributes. 
         [0021]    Debt purchaser  34  represents the companies or individuals who are interested in acquiring certain debt ownerships. After registering with debt collection center  10 , through web server  12  and management server  14 , such purchasers may request and search all kinds of lists or views for debt account records in database  16  excluding debtors&#39; names. In compliance with the FDCPA, the lists actually provide all debt information necessary for debt trading. Therefore the concealment of the debtors&#39; names does not affect the business between debt purchasers and creditors before final transaction. As mentioned previously, the debt purchasers&#39; judgment or opinions are appreciated on forum  30 , because of the nature of debt purchasers&#39; business. 
       CONCLUSION, RAMIFICATIONS, AND SCOPE 
       [0022]    The present invention accomplishes its stated objectives. A number of advantages of the present invention, from the description above, is evident:
       It is an open yet FDCPA-compliant system for debt collection and service.   It enables and motivates debtors to initiate communication with their creditors to solve their debt problems initiatively.   It specially benefits small creditors, including individuals and big companies having a large number of individual debt accounts with small amounts.   It enables authorized users to obtain certain background information easily.   It helps creditors obtain current location information about their debtors.   It enables debtors to dispute their debts in a direct, fair, easy, and transparent way.   It makes debt collection and legal services to be conveniently and easily accessible to creditors.   It provides collection and legal service companies and professionals with easier way and good opportunity to find prospective clients in their preferred areas.       
 
         [0031]    While the above description of the debt collection system shown in  FIGS. 1-2  contains many specificities, they should not be construed as limitations on the scope of the present invention, but exemplifications of the preferred embodiments thereof. Many other ramifications and variations are possible within the teachings of the various embodiments. At the collection center, webpage generator  18  may be replaced by an alternative generator  18 ′ that is triggered by a database management server  14 ′ as shown in  FIG. 3 , instead of by database  16  as shown in  FIG. 1 . Management servers  14 ′ and  14  may be different in software. Furthermore, all the servers may be integrated into one, as shown in  FIG. 4 , by an alternative web server  12 ″ having all the functions of the servers; and database  16  and webpage storage  22  may be also integrated (not shown). Here are more examples: 1) supplementary computer hardware and/or software, not described in above description, perform locally or remotely conventional system administration and maintenance, such as backups for servers and database; 2) debt account data could be transferred locally from portable data storage means, such as CDs, into the database through database management server  14  or through other local electronic devices or computers (not shown), especially for the creditors owning a large amount of debt account data; 3) there are more inter communication methods between the system&#39;s users other than emailing, such as by phone calling, texting, or instant messaging; 4) users access the system using the web browsers on their smart phones or other portable devices, instead of the web browsers on their computers; 5) the system provides a homepage having a drop-down name list or fill-up query field for showing or finding the webpages; 6) registered users retrieve creditors&#39; contact information from the database for communication with creditors, in addition to through the hyperlinks on the webpages; 7) the system provides a online payment service to aid debt payment and business transaction, as known in the art; and 8) creditors are advised about how to comply with the FDCPA when combining the system with a conventional collection method, such as making direct calls to debtors. Thus the scope of the present invention should be determined not by the examples given but by the appended claims and their legal equivalents.