Secure Payment Plan Obligation Transfer System
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Solution Overview
Problem
Current payment plans lack flexibility in managing repayment obligations, particularly during economic downturns, leading to potential defaults and exposure of sensitive information when users seek external financial assistance.
Innovation Solution
A computer-implemented method that securely transfers repayment obligations between users within an issuer system, involving transfer requests, confirmation processes, and alerts to ensure timely fulfillment of repayment obligations, while maintaining user privacy and financial stability.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If users seek external financial assistance during economic downturns, then flexibility in managing repayment obligations is improved, but sensitive information is exposed and default risk increases
Solution Approach 1:
The patent introduces a payment network as an intermediary between the issuer system and external users. This intermediary enables secure transfer of repayment obligations without direct exposure of sensitive user information. The payment network acts as a trusted mediator that facilitates the transfer while maintaining privacy and security boundaries, resolving the contradiction between flexibility and information protection.
2Reliability
If repayment obligations are transferred between users, then default risk is reduced and flexibility is improved, but system complexity increases
Solution Approach 1:
The system enables self-service transfer of repayment obligations between users through automated processes. Users can initiate transfers, and the system automatically manages the complex backend operations including updating repayment schedules, notifying relevant parties, and adjusting account balances. This self-service approach reduces default risk while minimizing the perceived complexity for users.
Solution Approach 2:
The patent implements feedback mechanisms where the system continuously monitors repayment status and automatically triggers transfer processes when conditions are met (e.g., missed payments, user requests). This automated feedback loop manages system complexity by using rule-based triggers rather than requiring complex manual coordination, thereby reducing default risk through timely interventions.
3Reliability
If confirmation processes are implemented for transfer requests, then security is improved and information protection is enhanced, but processing time increases
Solution Approach 1:
The system performs preliminary actions by pre-validating user identities, verifying account statuses, and checking eligibility criteria before transfer requests are submitted. This preliminary validation reduces the need for lengthy confirmation processes later, as basic security checks are already completed. The system prepares confirmation templates in advance, allowing for faster processing when actual transfers are initiated.
Data Source
AI summary
A computer implemented method of securely transferring at least one repayment obligation associated with a payment plan set for a first user to a second user includes receiving a transfer request from a first user device, associated with the first user, to transfer the at least one repayment obligation to the second user, wherein the transfer request includes a payment plan account identifier associated with the second user. The method includes pushing a confirmation request to a second user device, associated with the second user, to confirm acceptance of a transfer of the at least one repayment obligation, wherein the confirmation request comprises an identifier associated with the first user. The method includes receiving a confirmation, from the second user device, of the acceptance of the transfer of the at least one repayment obligation, and updating a payment status associated with the payment plan to a transferred status.