Default proof credit card method system

• US 4,718,009 A
• Filed: 05/31/1985
• Issued: 01/05/1988
• Est. Priority Date: 02/27/1984
• Status: Expired due to Fees

• Current Assignee: Default Proof Credit Card System Incorporated
• Original Assignee: Default Proof Credit Card System Incorporated
• Inventors: Cuervo, Vincent
• Primary Examiner(s): NOT, DEFINED
• Assistant Examiner(s): Meyer, Charles B.
• Application Number:
  US06/739,690
• Time in Patent Office: 949 Days
• Field of Search: 364/408, 364/200 MS File, 364/900 MS File, 364/400
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G07F 17/0014 for vending, access and use of specific services not covered anywhere else in G07F17/00 meter-controlled dispensing of liquid, gas or electricity G07F15/00
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A method and system for credit card issuers with cardholders that own insurance policies with surrender cash values in them. The method and system include the use of computerized and information storage systems for obtaining information storage systems for obtaining information from each participating cardholder. The system uses this information to compute a line of credit that is transmitted to the participating bank that issue the conventional cards. Since the system has an assignment of the equity of each policy, it can extend the line of credit with virtually no risk of default.

Claims

1. A method for providing line of credit information to participating banks that issue charge cards to owners of life insurance policies wherein the cash surrender value of said life insurance policies has been assigned to a system, which provides credit information to said participating bank, by said owner to secure a charge card line of credit to the owner of the life insurance policies, comprising the steps of:

A. providing a system for storing and periodically updating the cash surrender values of the assigned life insurance policies in a computer memory;

B. computing said line of credit for a charge card holder based on said cash surrender values stored for each policy owner;

C. transmitting said line of credit information from said system to participating banks; and

D. monitoring periodically the assigned life insurance policies with said system for any incremental increase of said cash surrender values so that the line of credit for the charge card holder may be automatically upgraded.

2. The method set forth in claim 1 wherein said step of computing the line of credit is done with a general purpose computer and said step of transmitting said line of credit is done through modem means connected through the public telephone lines network to said participating banks.

3. A system for providing line of credit information to participating banks that issue charge cards to owners of life insurance policies wherein the cash surrender value of said life insurance policies have been assigned to said system, which provides credit information to participating banks, by said owners to secure the charge card line of credit to the owner of the life insurance policies, comprising

A. memory means for storing and periodically updating said cash surrender values of assigned life insurance policies;

B. means for computing said line of credit from said stored cash surrender values of the assigned insurance policies according to a pre-determined formula;

C. means for transmitting said computed line of credit information from said system to said participating bank; and

D. means for periodically monitoring the assigned life insurance policies for any incremental increase of said cash surrender value so that the line of credit of the charge card holder may be automatically upgraded in said system.

4. The system set forth in claim 3 wherein said means for computing includes a general purpose computer and said means for transmitting includes modem means connected to said participating banks through the public telephone lines network.