Rules-Based Engine for Automated Debt Settlement Offers
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Solution Overview
Problem
Current systems for resolving financial transactions, such as debt collection and insurance claim settlements, are inefficient and costly due to the need for intrusive and time-consuming methods, including aggressive collection tactics and high operational costs, which can lead to reduced overall recovery and increased debt delinquency.
Innovation Solution
A system and method that utilizes a server arrangement with a rules-based engine to collect relevant financial information and present settlement offers to users, allowing for lump sum payments and customizable payment options, thereby automating the transaction resolution process and reducing costs and complexities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional aggressive collection tactics and manual negotiation methods are used, then debt recovery may be achieved, but operational costs increase and time consumption increases
Solution Approach 1:
The system enables automated self-service transaction resolution where the server arrangement automatically collects financial information, evaluates lump sum payment proposals, and presents settlement offers without requiring manual intervention from collectors or claim representatives, thereby reducing operational complexity while maintaining recovery effectiveness
Solution Approach 2:
The patent replaces manual mechanical negotiation processes with an automated electronic system that uses rules-based engines to evaluate proposals and generate settlement offers, substituting human-collector interactions with automated computational processes that reduce operational complexity
2Manufacturing precision
If manual investigation and face-to-face negotiation are used, then settlement terms can be optimized, but time consumption increases significantly
Solution Approach 1:
The system performs preliminary automated investigation and evaluation of financial information before settlement negotiations, pre-calculating optimal settlement terms based on collected data and lump sum payment proposals, thereby reducing the time required for actual negotiation while maintaining optimization quality
Solution Approach 2:
The patent replaces time-consuming manual investigation and negotiation processes with automated electronic information collection and rules-based settlement offer generation, substituting face-to-face interactions with computational processes that achieve similar optimization outcomes much faster
3Measurement precision
If comprehensive financial information is collected, then settlement offers can be tailored accurately, but system complexity increases
Solution Approach 1:
The server arrangement performs multiple functions through a unified automated system: collecting financial information, evaluating lump sum payment proposals, calculating optimal settlement terms, and presenting tailored offers, thereby achieving high settlement accuracy without proportionally increasing system complexity through functional integration
4Productivity
If automated systems are implemented, then operational costs decrease, but adaptability to individual cases may be reduced
Solution Approach 1:
The system maintains adaptability by dynamically adjusting settlement offer parameters based on collected financial information and lump sum payment proposals, using rules-based calculations that customize settlement terms for each individual case while operating within an efficient automated framework
Data Source
AI summary
A system and method for the online settling of a transaction is provided. The system includes a server arrangement having a rules based engine including rules established on behalf of a party to the transaction, such as a creditor. The rules based engine is configured to process data and present a transaction settlement offer set comprising a plurality of selectable offers to the user based on at least one decision made by the rules based engine. The server arrangement is further configured to receive a lump sum payment proposal from the user and to use the rules based engine to process information comprising the lump sum payment proposal and present a second transaction settlement offer set to the user based at least in part on the lump sum payment proposal from the user.