Universal payment protection

• US 8,447,672 B2
• Filed: 04/07/2011
• Issued: 05/21/2013
• Est. Priority Date: 05/27/2005
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: DeLoach, John Mark
• Primary Examiner(s): NGUYEN, TIEN C
• Application Number:
  US13/082,165
• Publication Number:
  US 20110184846A1
• Time in Patent Office: 775 Days
• Field of Search: 705 30- 45, 705/2, 705/4, 709/217, 709/227, 726/35
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/3555 Personalisation of two or more cards
• CPC Class Codes: G06Q 20/3572 Multiple accounts on card
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G07F 7/10 together with a coded signal , e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data

Abstract

A system for and method of providing payment protection upon the occurrence of trigger events. The system and method include an account, which may be associated with a credit card or other financial product. An accountholder may select trigger events and associated benefits. Upon the occurrence of a trigger event, the issuing entity will evaluate whether the accountholder is entitled to receive an associated benefit. Each benefit is intended to address at least one payment obligation. For example, an account may include payment protection in the form of automatic payment of minimum monthly credit card fees should the accountholder involuntarily become unemployed.

Claims

1. A computer-implemented method for providing an unrestricted line of credit to an entity from a credit provider, the method comprising:

receiving, through a computer, an application from an entity for an unrestricted line of credit which is not limited to payment obligations associated with the credit provider;

performing, through the computer, a risk-assessment of the application to determine credit risk of the entity, and upon a determination that the credit risk is acceptable, accepting the application;

receiving, through the computer, a selection of trigger event and benefit pairs, each comprising a trigger event and a line of credit associated with each trigger event;

calculating, through the computer, a value for each trigger event and benefit pair;

calculating, through the computer, a payment protection price for each trigger event and benefit pair;

issuing the payment protection price for each selected trigger event and benefit pair for payment by the entity;

receiving notification that a trigger event has occurred;

verifying the occurrence of the trigger event; and

upon verification of the trigger event;

providing, through the computer, the line of credit to the entity associated with the trigger event.

2. The method of claim 1, wherein the calculation of the value of the trigger event and benefit pair comprises at least one probabilistic computation.

3. The method of claim 2, wherein the probabilistic computation comprises at least one financial assessment associated with the trigger event.

4. The method of claim 1, further comprising determining that the entity is entitled to the unrestricted line of credit.

5. The method of claim 1, wherein the unrestricted line of credit is in the form of a check, direct deposit, wire transfer to an account, added funds to a stored value card or distribution of a stored value card.

6. The method of claim 1, wherein trigger event is involuntary loss of employment, disability, hospitalization, child birth, child adoption, retirement, divorce, medical treatment, family leave, judicial proceedings, tax events, natural disasters, call to duty, fire, flood, marriage, bankruptcy or death.

7. The method of claim 1, wherein the payment protection price is in the form of a monthly fee, a lump-sum fee, a percentage of a monthly obligation, a percentage of a total outstanding debt, a percentage of an average monthly balance or any combination thereof.

8. A computer-implemented method for providing a payment protection account to an entity from a credit provider, the method comprising:

receiving, through a computer, an application from an entity for a payment protection account;

performing, through the computer, a risk-assessment of the application to determine credit risk of the entity, and upon a determination that the credit risk is acceptable, accepting the application;

providing the payment protection account to the entity;

receiving, through the computer, a selection of trigger event and benefit pairs associated with the payment protection account, each trigger event and benefit pair comprising a trigger event and an unrestricted line of credit associated with each trigger event, wherein the unrestricted line of credit is accessible to the entity upon occurrence of the associated trigger event;

calculating, through the computer, a value for each trigger event and benefit pair;

calculating, through the computer, a payment protection price for each trigger event and benefit pair;

issuing the payment protection price for each selected trigger event and benefit pair for payment by the entity.

9. The method of claim 8, further comprising receiving an indication that the trigger event has occurred.

10. The method of claim 9, further comprising providing the unrestricted line of credit to the entity in response to the indication that the trigger event has occurred.

11. The method of claim 8, further comprising verifying that the trigger event has occurred.

12. The method of claim 8, wherein the unrestricted line of credit is in the form of a check, direct deposit, wire transfer to an account, added funds to a stored value card or distribution of a stored value card.

13. The method of claim 8, wherein trigger event is involuntary loss of employment, disability, hospitalization, child birth, child adoption, retirement, divorce, medical treatment, family leave, judicial proceedings, tax events, natural disasters, call to duty, fire, flood, marriage, bankruptcy or death.

14. The method of claim 8, wherein the payment protection price is in the form of a monthly fee, a lump-sum fee, a percentage of a monthly obligation, a percentage of a total outstanding debt, a percentage of an average monthly balance or any combination thereof.