A METHOD FOR COLLECTION OF AMOUNTS OVERDUE AND DUE BY PAYDAY-TO-PAYDAY DRAFTS

摘要

A method and computer program product for collection of amounts overdue and due by payday-to-payday debits from a debtor's asset account. In a first version, using ACH debits, the debtor is solicited by mail and followed-up by telephone. A second version employs payee-emitted checks as a payment vehicle. The debtor authorizes recurring debits equal to one half of a regular monthly payment, on payday dates, from the asset account, beginning on a negotiated date. Subsequently, regular debits from the account are set up. A delinquent account may be re-aged after a required number of drafts have been honored. The invented method allows collections to be made from any customer from asset accounts in virtually any financial institution that is an ACH participant or which pays against checks. The invention also provides the capability of re-submitting rejected debits without expelling the debtor from the payday-to-payday debit program.