Automated Debt Resolution Platform for Accelerating Charge Off

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Solution Overview

Problem

Existing debt management plans lack efficiency and user input, often resulting in undue wait times, unnecessary fees, and delayed payments, with creditors charging off debts unexpectedly, harming credit scores and lacking proactive resolution strategies.

Innovation Solution

An interactive debt resolution planning platform that predicts future account behavior using user inputs and account data to enroll delinquent accounts in an accelerated charge off plan, allowing direct payments to creditors, suspending late fees and interest, and automating the charge off process.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional debt management plans are implemented through third-party credit counseling firms, then formal agreements can be established between users and creditors, but the process results in undue wait times, unnecessary fees, and delayed charge off

Engineering Contradiction:

Improvecharge off accuracyVSAvoidwait time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system enables automated self-service processing where the debt resolution platform automatically evaluates delinquent accounts, determines charge off eligibility based on predefined criteria, and executes charge off without requiring manual intervention from credit counseling firms. This eliminates the time-consuming manual agreement process while maintaining reliable charge off decisions through systematic evaluation of account data.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The system performs preliminary evaluation of delinquent accounts against charge off criteria before initiating the charge off process. By pre-assessing account status, payment history, and delinquency patterns, the system identifies eligible accounts in advance, allowing for expedited charge off processing without the delays associated with traditional post-enrollment charge off procedures.

Inventive Principle:

Principle #10Preliminary action

2Productivity

If traditional debt management plans are implemented, then agreements can be established, but the process incurs unnecessary fees and delays payments

Engineering Contradiction:

Improvedebt resolution efficiencyVSAvoidunnecessary fees

Core Design Contradiction:

ProductivityVSLoss of energy

Solution Approach 1:

The system extracts and eliminates the intermediate credit counseling firm layer from the debt resolution process. By implementing a direct automated platform between creditors and delinquent accounts, the system removes the source of unnecessary fees while maintaining the essential function of establishing and managing debt resolution agreements through automated workflows.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The system replaces the manual mechanical process of credit counseling firm intervention with an automated digital platform that uses algorithms to evaluate accounts, determine charge off eligibility, and execute resolutions. This substitution eliminates human-operated fee structures while maintaining productive debt resolution through efficient automated processing.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If creditors wait for traditional debt management processes, then formal procedures can be followed, but charge off occurs unexpectedly and harms credit scores

Engineering Contradiction:

Improvecredit score protectionVSAvoidcharge off timing prediction

Core Design Contradiction:

ReliabilityVSMeasurement precision

Solution Approach 1:

The system continuously monitors delinquent account status, payment behavior, and delinquency patterns, providing real-time feedback on charge off likelihood. This feedback mechanism allows creditors to proactively identify accounts approaching charge off thresholds and intervene with accelerated charge off plans before unexpected charge off occurs, thereby protecting credit scores through timely, predictable resolution.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The system performs preliminary assessment of charge off risk by evaluating account delinquency patterns and predicting future charge off timing. This early identification allows creditors to implement accelerated charge off plans proactively, transforming unexpected charge off into a controlled, predictable process that protects users' credit scores through advance notification and structured resolution.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS11094008B2Debt resolution planning platform for accelerating charge off

Publication Date: 2021.08.17 CAPITAL ONE SERVICES LLC

AI summary

A device receives a request for information regarding a debt resolution plan available for a delinquent account. The request may include a first input indicating a payment amount, a second input indicating a payment frequency, and a third input indicating a payment start date. The device obtains account data associated with the delinquent account and determines, using a model, a score for the delinquent account based on the first input, the second input, the third input, and/or the account data. The score predicts a likelihood that the delinquent account will charge off within a predetermined time period. The device determines a plurality of plan parameters for an accelerated charge off plan when the score satisfies a threshold. The device transmits the plurality of plan parameters, receives an enrollment request, enrolls the delinquent account in the accelerated charge off plan, and performs one or more actions based on the enrolling.