Loyalty reward program for reducing the balance of a loan obligation

• US 20020161630A1
• Filed: 09/29/2000
• Published: 10/31/2002
• Est. Priority Date: 07/07/2000
• Status: Active Application

• Current Assignee: Nelnet Incorporated
• Original Assignee: Nelnet Loan Services, Inc. (Nelnet Incorporated)
• Inventors: Hartman, Brooke, Bird, Joseph, Kern, K. Jon
• Application Number:
  US09/677,401
• Publication Number:
  US 20020161630A1
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0232 Frequent usage rewards other than merchandise, cash or travel
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Abstract of Disclosure

A method and apparatus for reducing the balance of a consumer or educational loan obligation using a loyalty reward program is disclosed. Loan obligors can reduce the balances of their loan obligations by purchasing consumer goods and services that they would normally purchase. The method essentially comprises the steps of (a) establishing a site on a global computer network; (b) recognizing at least certain users of the site; (c) directing the recognized users to merchants; (d) enabling accumulation of loyalty points by the recognized users based upon purchases from the merchants; (e) monitoring the purchases by the recognized users from the merchants; (f) tracking the accumulated loyalty points; and (g) permitting selective redemption of the accumulated loyalty points. Users of the site are recognized by requiring them to provide initial registration information. Accumulated loyalty points may be categorized with a status of "pending" or a status of "earned." Selective redemption of the accumulated loyalty points includes selective application of earned loyalty points to a loan of a recognized user to permit repayment of the loan, or selective transfer of earned loyalty points from one recognized user to another recognized user. Information about accumulated, redeemed, and transferred loyalty points may be displayed to a recognized user.

Claims

1. A method of accumulating and redeeming loyalty points, said method comprising the steps of

2. The method of claim 1, wherein said step (D) further comprises enabling accumulation of loyalty points based upon a commission rate for each of said merchants, and wherein said method further comprises the step of permitting said recognized users to look up said commission rates.

3. The method of claim 1, wherein said site established in said step (A) is a virtual college community, with topics primarily of interest to past, present, and future college students.

4. The method of claim 1, wherein said recognized users include a first user, and wherein said step (G) further comprises permitting application of said selectively redeemed loyalty points to an outstanding balance of a loan obligation of said first user to permit repayment of said loan obligation using said applied loyalty points.

5. The method of claim 4, wherein said step (G) further comprises requiring that said first user apply at least a predetermined minimum number of loyalty points.

6. The method of claim 5, wherein said minimum number of loyalty points is twenty-five loyalty points.

7. The method of claim 1, wherein said recognized users include a first user and a second user, and wherein said step (G) further comprises transferring said selectively redeemed loyalty points from said first user to said second user.

8. A method of facilitating repayment of a loan obligation, said method comprising the steps of

9. The method of claim 8, wherein said step (F) further comprises automatically tracking said accumulated loyalty points.

10. The method of claim 8, wherein said step (B) further comprises storing said initial registration information in a participant table.

11. The method of claim 8, wherein said initial registration information comprises

12. The method of claim 8, wherein said step (C) further comprises presenting said recognized users with a first selectable button to link said recognized users to a virtual shopping mall and a second selectable button to link said recognized users to a preferred textbook merchant, wherein said step (E) further comprises monitoring a first one of said recognized users for selection of one of said first and second selectable buttons, and wherein, following selection of one of said first and second selectable buttons, said step (E) further comprises requiring said first one of said recognized users to log in.

13. The method of claim 12, wherein said step (E) further comprises

14. The method of claim 13, wherein said initial registration information comprises a user name and a password, and wherein said login screen requires said first one of said recognized users to enter said user name and said password.

15. The method of claim 12, wherein said step (F) further comprises passing identifying information about said first one of said recognized users to a selected merchant selected by said first one of said recognized users.

16. The method of claim 15, wherein said step (B) further comprises assigning a member ID to said first one of said recognized users.

17. The method of claim 16, wherein said identifying information comprises said member ID, and wherein said step (E) further comprises passing said member ID to said selected merchant.

18. The method of claim 17, wherein said step (F) further comprises said selected merchant filling an order, creating a transaction record comprising information about said filled order, and posting said transaction record to an information retrieval system.

19. The method of claim 17, wherein said step (F) further comprises said selected merchant filling an order, creating a transaction record comprising information about said filled order, and transmitting said transaction record to a merchant broker.

20. The method of claim 19, wherein said merchant broker posts said transaction record to an information retrieval system.

21. The method of claim 20, wherein said step (D) further comprises said merchant broker assigning merchant identification numbers to said predetermined merchants and prearranging a commission structure with said predetermined merchants, whereby said purchases by said recognized users from said predetermined merchants produce an accumulation of loyalty points according to said prearranged commission structure, and wherein said transaction record includes raw sales and commission data.

22. The method of claim 18 or 20, wherein said step (D) further comprises prearranging a commission structure with said predetermined merchants, whereby said purchases by said recognized users from said predetermined merchants produce an accumulation of loyalty points according to said prearranged commission structure, and further wherein said transaction record includes raw sales and commission data.

23. The method of claim 22, wherein said step (A) further comprises a primary loan servicer establishing said site on said global computer network, and wherein said step (F) further comprises said primary loan servicer

24. The method of claim 23, wherein said step (i) is performed manually, and wherein said step (ii) further comprises receiving said transaction records electronically on a weekly basis.

25. The method of claim 23, wherein said step (F) further comprises said primary loan servicer further processing said raw sales and commission data to determine a number of loyalty points accumulated by said first one of said recognized users based upon said commission structure.

26. The method of claim 25, wherein, for each of said predetermined merchants, said commission structure includes at least one product and a full commission for said at least one product, and wherein said number of loyalty points accumulated by said first one of said recognized users for purchasing said at least one product equals no more than said full commission.

27. The method of claim 19, wherein said merchant broker provides marketing resources and data about said predetermined merchants.

28. The method of claim 27, wherein said step (A) further comprises a primary loan servicer establishing said site on said global computer network, and wherein said step (C) further comprises said primary loan servicer incorporating said marketing and resource data into said site for presentation to said recognized users.

29. The method of claim 8, further comprising the steps of

30. The method of claim 8, wherein said recognized users include a first recognized user and a second recognized user, said method further comprising the steps of

31. The method of claim 30, further comprising the step of permitting said first recognized user to selectively repay the loan obligation based upon discretionary redemption of said accumulated loyalty points.

32. The method of claim 29, 30, or 31, wherein said additional registration information comprises

33. The method of claim 29, 30, or 31, wherein said step (D) further comprises prearranging a commission structure with said predetermined merchants, whereby said purchases by said recognized users from said predetermined merchants produce an accumulation of loyalty points according to said prearranged commission structure.

34. The method of claim 29, 30, or 31, wherein said step (D) further comprises enabling accumulation of loyalty points at a predetermined percentage of a purchase price, wherein said predetermined percentage varies by merchant based upon prearranged merchant agreements.

35. The method of claim 34, wherein said predetermined percentage is no more than 5 percent of said purchase price.

36. The method of claim 8, wherein said step (C) further comprises presenting said recognized users with a selectable button to link said recognized users to a virtual shopping mall.

37. The method of claim 36, wherein said virtual shopping mall comprises a list of said predetermined merchants.

38. The method of claim 8, wherein said step (C) further comprises presenting said recognized users with a list of said predetermined merchants.

39. The method of claim 37 or 38, wherein said list of said predetermined merchants is presented alphabetically.

40. The method of claim 37 or 38, wherein said list of said predetermined merchants is presented based upon a user-selectable category from a list of available categories.

41. The method of claim 40, wherein said list of available categories is presented as a pop-up list of available categories.

42. The method of claim 37 or 38, wherein at least one of said predetermined merchants has a merchant site on said global computer network, and wherein said step (C) further comprises framing screens from said merchant site of said at least one predetermined merchant.

43. The method of claim 37 or 38, wherein at least one of said predetermined merchants has a merchant site on said global computer network, and wherein said step (C) further comprises hyperlinking to said merchant site of said at least one of said predetermined merchants.

44. The method of claim 8, wherein said step (C) further comprises directing said recognized users to at least one predetermined textbook merchant.

45. The method of claim 8, wherein said step (A) further comprises establishing said site on said global computer network to include linkable references to a preferred textbook merchant, and wherein said step (C) further comprises directing said recognized users to said preferred textbook merchant.

46. The method of claim 45, wherein said step (C) further comprises presenting said recognized users with a user-selectable button to link said recognized users to said preferred textbook merchant.

47. A method of facilitating repayment of a loan obligation, said method comprising the steps of

48. The method of claim 47, wherein said step (A) further comprises a primary loan servicer establishing said site on said global computer network, and wherein said method further comprises the step of

49. The method of claim 48, wherein said displayed loan information comprises

50. The method of claim 48, wherein said step (H) further comprises

51. The method of claim 50, wherein said step (H) further comprises applying 120 percent of said typed number of accumulated loyalty points to said selected one of said at least one loan of said first recognized user.

52. The method of claim 47, wherein said step (H) further comprises

53. The method of claim 52, wherein said step (H) further comprises transferring funds to said selected secondary loan servicer on an at least one-loyalty-point-for-one-dollar basis.

54. A method of facilitating repayment of a loan obligation, said method comprising the steps of

55. The method of claim 54, wherein said step (H) further comprises

56. The method of claim 55, wherein said categorizing step further comprises placing all newly accumulated loyalty points in said first status for a predetermined status waiting period and then changing said accumulated loyalty points to said second status after said status waiting period elapses.

57. The method of claim 56, wherein said status waiting period is 30 days.

58. The method of claim 55 or 56, wherein said displaying step further comprises graphically presenting said second number of said accumulated loyalty points using a meter graphic.

59. The method of claim 58, wherein said method further comprises the step of permitting said first recognized user to selectively redeem said accumulated loyalty points having said second status in a redemption amount no greater than said second number of said accumulated loyalty points.

60. The method of claim 59, wherein said permitting step further comprises requiring that said first recognized user selectively redeem at least a minimum number of said accumulated loyalty points.

61. The method of claim 60, wherein said displaying step further comprises graphically presenting said second number of said accumulated loyalty points as a portion of said minimum number of said accumulated loyalty points.

62. The method of claim 61, wherein said minimum number of loyalty points is twenty-five loyalty points.

63. The method of claim 59, wherein said first recognized user selectively redeems said accumulated loyalty points in one of the following two ways:

64. The method of claim 63, wherein said first recognized user must apply at least a minimum number of said accumulated loyalty points, and may transfer any number of said accumulated loyalty points.

65. A method of facilitating repayment of a loan obligation, said method comprising the steps of

66. The method of claim 65, wherein said step (J) further comprises displaying details concerning said accumulated loyalty points, wherein, for each purchase from one of said predetermined merchants, said details include

67. The method of claim 65, wherein said step (J) further comprises displaying said first redemption amount with a status of "applied".

68. The method of claim 65, wherein said step (J) further comprises displaying said first redemption amount with a status of "transferred".

69. The method of claim 65, wherein said first recognized user must apply at least a minimum number of said accumulated loyalty points, and may transfer any number of said accumulated loyalty points.

70. The method of claim 65, further comprising the steps of

71. A method of facilitating repayment of a loan obligation, said method comprising the steps of

72. The method of claim 71, wherein said step (A) further comprises generating an opening screen that includes a plurality of user-selectable hyperlinks.

73. The method of claim 71, wherein said step (A) further comprises generating an opening screen that includes a plurality of user-selectable icons and a corresponding plurality of user-selectable hyperlinks.

74. The method of claim 72 or 73, wherein said opening screen further includes a plurality of user-selectable sub-hyperlinks, at least one sub-hyperlink for each hyperlink.

75. The method of claim 71, wherein said step (A) further comprises generating an opening screen that includes a first plurality of user-selectable icons.

76. The method of claim 75, wherein said opening screen further includes a second plurality of user-selectable hyperlinks and a third plurality of user-selectable sub-hyperlinks, wherein said third plurality includes at least one sub-hyperlink for each hyperlink, and wherein said second plurality of hyperlinks and said third plurality of sub-hyperlinks together create a user-selectable outline of said site.

77. The method of claim 75, wherein said opening screen further includes a user-selectable menu of site content.

78. The method of claim 75, wherein said step (A) further comprises generating a site navigation system.

79. The method of claim 78, wherein said site navigation system comprises a first plurality of user-selectable icons representing site content.

80. The method of claim 78, wherein said site navigation system comprises a first plurality of user-selectable tabs representing site content.

81. The method of claim 80, wherein said site navigation system further comprises a second plurality of user-selectable sub-tabs representing site content.

82. The method of claim 78, wherein said site navigation system comprises a first plurality of user-selectable hyperlinks representing site content.

83. The method of claim 82, wherein said site navigation system further comprises a second plurality of user-selectable sub-hyperlinks representing site content.

84. The method of claim 71, wherein said step (A) further comprises establishing said site with an e-commerce component that permits purchasing from said predetermined merchants via online shopping.

85. The method of claim 84, wherein step (B) further comprises requiring said certain users to register by providing registration information.

86. The method of claim 85, wherein step (B) further comprises storing said registration information in a participant table.

87. The method of claim 85, wherein said registration information comprises

88. The method of claim 87, wherein said step (B) further comprises sending a confirmatory email to said email address of said newly-registered users.

89. The method of claim 87, wherein said step (B) further comprises storing said registration information in a participant table, and enabling recognition of a returning recognized user by said stored user name and said password.