Importance

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Abstract

A method and apparatus for preauthorizing electronic fund transfers from a consumer's bank account without obtaining actual written authentication from the consumer is implemented in connection with a direct marketing strategy for a financial product which, in the presently preferred embodiment of the invention, is a mortgage acceleration program. The invention provides for the mailing of a solicitation to a consumer, i.e. a prospective customer, based upon such factors as mortgage data that the financial institution may posses concerning the consumer. The mailing includes an authorization and passcode which, in the presently preferred embodiment of the invention, is an ACH authorization and passcode. When the consumer receives the solicitation, he may decide to enroll in the mortgage acceleration program. The consumer places a telephone call to a telemarketing organization at a telephone number that accompanied the solicitation. The consumer provides the passcode to a representative of the telemarketing organization and the telemarketing organization attempts to verify the passcode. If the passcode is successfully verified, then the consumer is enrolled in the mortgage acceleration program. Thus, the invention provides a deceptively simple and specific implementation of the 'similarly authenticated' requirement of the EFTA that is applicable to direct marketing solicitations made by, or on behalf of, financial institutions. That is, the passcode provided by the consumer meets the requirement of a 'digital signature or other code.' Yet, the consumer is not required to provide an actual written signature, nor is the consumer required to use a computer or other electronic means to conclude the transaction.

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First Claim