Patent ID: 8401960

Claim:
A computerized online credit escrow method, comprising the steps of: a server receiving data representative of an electronic payment from a computing device operated by a debtor; storing a payment value associated with the electronic payment in a payment database stored in non-transitory computer readable memory of the server; the server updating an escrow account database stored in the nontransitory computer readable memory of the server to reflect the payment value, the escrow account database having a total payment value stored therein; the server comparing the total payment value stored in the payment database against a total debt value stored in the escrow account database; determining whether the total payment value equals the total debt value; when the total payment value equals the total debt value, then the server performing the additional steps of: (1) transmitting a notification signal to a debt collector from the third party that a debt has been paid and that payment will not be transferred to the debt collector until a credit reporting agency credit record of the debtor has been accurately updated to reflect the payment, the total payment value representing funds being held in escrow by the third party; (2) verifying that the debtor's credit record has been accurately updated by the debt collector to reflect the payment; and (3) releasing the funds held in escrow by the third party to the debt collector if the debtor's credit rating has been accurately updated by the debt collector to reflect the payment.