Universal payment protection

• US 7,941,355 B1
• Filed: 01/13/2006
• Issued: 05/10/2011
• 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): Cheung; Mary
• Assistant Examiner(s): Nguyen; Tien C
• Application Number:
  US11/331,141
• Time in Patent Office: 1,943 Days
• Field of Search: 705 1- 45, 283/56, 434/323, 455/412.1, 707/9, 709/206, 713/189
• 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 of relieving an entity from at least one future payment obligation, the computer implemented method comprising:

receiving, at a web page, information relating to the entity;

deciding whether to issue an account to the entity;

issuing an account to the entity in response to the step of deciding, wherein the entity uses the account for purchases from third parties;

receiving data provided by the entity at a web page, the data being associated with at least one of the entity and the account, the data comprising;

first information reflecting a trigger circumstance, the first information defining a potential future situation, and second information reflecting a line of credit intended to address at least one payment obligation;

wherein the payment obligation is not initially associated with the account and not in existence at a time of issuance of the account, and wherein the payment obligation is owed to a third party;

processing, using a programmed computer, at least a portion of the data using at least one actuarial computation, the actuarial computation reflecting an expected value of the line of credit;

receiving from the entity at least one payment associated with the trigger circumstance and the line of credit, the at least one payment providing the entity with the ability to receive the line of credit upon occurrence of the trigger circumstance, the at least one payment comprising the expected value of the line of credit and at least one additional fee;

receiving an indication that a trigger circumstance has occurred;

comparing information in the indication to account information associated with the entity;

determining, based on the account information associated with the entity and consistent with the data received from the entity, that the entity is entitled to the line of credit; and

providing the line of credit to the entity in accordance with the account information associated with the entity.

2. The method of claim 1 wherein the line of credit is intended to address any payment obligation.

3. The method of claim 1 further comprising restricting use of the line of credit.

4. The method of claim 3 wherein the restricting comprises restricting who receives funds from the line of credit.

5. The method of claim 1 wherein the line of credit is intended for use against a financial obligation arising from a financial product.

6. The method of claim 1 wherein the trigger event is selected from the group consisting of:

loss of employment, divorce, disability, hospitalization, medical treatment, family leave, natural disaster, judicial proceeding, tax event, call to duty, fire, flood, marriage, child birth, child adoption, retirement, and death.

7. The method of claim 1 wherein the at least one payment obligation is selected from the group consisting of:

loan payment, insurance bill, rent, utility bill, hospital bill, mortgage payment, credit card bill, retirement savings, car payment, penalty, fine, attorney fee, tax, lease, line of credit, letter of credit payment, and child support.

8. The method of claim 1 wherein the account comprises at least one financial product selected from the group consisting of:

a credit card, a benefit card, a stored value card, a letter of credit, and a line of credit.

9. The method of claim 1 further comprising:

receiving data selected by the entity, the data being associated with the account, the data comprising;

third information reflecting a second trigger circumstance, the third information defining a potential future situation, and fourth information reflecting a second line of credit, the second line of credit being intended to address at least one payment obligation;

receiving a request, the request indicating that a trigger circumstance has occurred;

comparing information in the request to account information associated with the entity;

determining, based on the account information associated with the entity and consistent with the data received from the entity, that the entity is entitled to a triggered benefit, the triggered benefit being selected from the group consisting of;

the line of credit and the second line of credit; and

providing the triggered benefit to the entity in accordance with the account information associated with the entity.

10. A system for relieving an entity from at least one future payment obligation, the system comprising:

a computer configured to receive information relating to the entity;

an account associated with the entity, wherein the account is usable by the entity to make purchases from third parties;

a web page configured to receive data selected by the entity, the data being associated with the account, the data comprising;

first information reflecting a trigger circumstance, the first information defining a potential future situation, and second information reflecting a line of credit being intended to address at least one payment obligation, wherein the payment obligation is not initially associated with the account and not in existence at a time of issuance of the account, and wherein the payment obligation is owed to a third party;

a computer configured to process at least a portion of the data using at least one actuarial computation, the actuarial computation reflecting an expected value of the line of credit;

means for receiving from the entity at least one payment associated with the trigger circumstance and the line of credit, the at least one payment providing the entity with the ability to receive the line of credit upon occurrence of the trigger circumstance, the at least one payment comprising the expected value of the line of credit and at least one additional fee;

a web page configured to receive a request, the request indicating that a trigger circumstance has occurred;

a computer configured to compare information in the request to account information associated with the entity;

a computer configured to determine, based on the account information associated with the entity and consistent with the data received from the entity, that the entity is entitled to the line of credit; and

means for providing the line of credit to the entity in accordance with the account information associated with the entity.

11. The system of claim 10 wherein the line of credit is intended to address any payment obligation.

12. The system of claim 10 wherein use of the line of credit is restricted.

13. The system of claim 12 wherein the restricting comprises restricting who fray receives funds from the line of credit.

14. The system of claim 10 wherein the line of credit is intended for use against a financial obligation arising from a financial product.

15. The system of claim 10 wherein the trigger event is selected from the group consisting of:

loss of employment, divorce, disability, hospitalization, medical treatment, family leave, judicial proceeding, tax event, natural disaster, call to duty, fire, flood, marriage, child birth, child adoption, retirement, and death.

16. The system of claim 10 wherein the at least one payment obligation is selected from the group consisting of:

loan payment, insurance bill, rent, utility bill, hospital bill, mortgage payment, credit card bill, retirement savings, car payment, penalty, fine, attorney fee, tax, lease, line of credit, letter of credit payment, and child support.

17. The system of claim 10 further comprising at least one financial product selected from the group consisting of:

a credit card, a benefit card, a stored value card, a letter of credit, and a line of credit, wherein the account comprises the at least one financial product.

18. The system of claim 10 further comprising:

a computer configured to receive data selected by the entity, the data being associated with the account, the data comprising;

third information reflecting a second trigger circumstance, the third information defining a potential future situation, and fourth information reflecting a second line of credit, the second line of credit being intended to address at least one payment obligation;

a web page configured to receive a request, the request indicating that a trigger circumstance has occurred;

a computer configured to compare information in the request to account information associated with the entity;

a computer configured to determine, based on the account information associated with the entity and consistent with the data received from the entity, that the entity is entitled to a triggered benefit, the triggered benefit being selected from the group consisting of;

the line of credit and the second line of credit; and

means for providing the triggered benefit to the entity in accordance with the account information associated with the entity.

19. The system of claim 10, further comprising:

means for receiving an application from the entity, the application comprising information relating to the entity; and

means for accepting the application.

20. A system for of relieving an entity from at least one future payment obligation, the system comprising:

means for receiving an application from the entity;

means for accepting the application;

means for issuing an account to the entity in response to said accepting, wherein the entity uses the account for purchases from third parties;

means for receiving data selected by the entity, the data being associated with the account, the data comprising;

first information reflecting a trigger circumstance, the first information defining a potential future situation, and second information reflecting a line of credit, the line of credit being intended to address at least one payment obligation, wherein the at least one payment obligation is not initially associated with the account and wherein the payment obligation is owed to a third party;

means for processing at least a portion of the data using at least one actuarial computation, the actuarial computation reflecting an expected value of the line of credit;

means for receiving from the entity at least one fee associated with the trigger circumstance and the line of credit, the at least one fee providing the entity with the ability to receive the line of credit upon occurrence of the trigger circumstance, the at least one fee comprising the expected value of the line of credit and at least one additional fee;

means for receiving a request, the request indicating that a trigger circumstance has occurred;

means for comparing information in the request to account information associated with the entity;

means for determining, based on the account information associated with the entity and consistent with the data received from the entity that the entity is entitled to the line of credit; and

means for providing the line of credit to the entity in accordance with the account information associated with the entity.

21. A computer implemented method of relieving an entity from at least one future payment obligation, the computer implemented method comprising:

receiving, at a web page, information relating to the entity;

deciding whether to issue an account to the entity;

issuing an account to the entity in response to the step of deciding, wherein the entity uses the account for purchases from third parties;

receiving data provided by the entity at a web page, the data being associated with at least one of the entity and the account, the data comprising;

first information reflecting a trigger circumstance, the first information defining a potential future situation, and second information reflecting a line of credit intended to address at least one payment obligation, wherein the payment obligation is not initially associated with the account and wherein the payment obligation is owed to a third party, and wherein the trigger circumstance is selected from the group consisting of;

loss of employment, divorce, disability, hospitalization, medical treatment, family leave, natural disaster, judicial proceeding, tax event, call to duty, fire, flood, marriage, child birth, child adoption, retirement, and death;

processing, using a programmed computer, at least a portion of the data using at least one actuarial computation, the actuarial computation reflecting an expected value of the line of credit;

receiving from the entity at least one payment associated with the trigger circumstance and the line of credit, the at least one payment providing the entity with the ability to receive the line of credit upon occurrence of the trigger circumstance, the at least one payment comprising the expected value of the line of credit and at least one additional fee;

receiving an indication that a trigger circumstance has occurred;

comparing information in the indication to account information associated with the entity;

determining, based on the account information associated with the entity and consistent with the data received from the entity, that the entity is entitled to the line of credit; and

providing the line of credit to the entity in accordance with the account information associated with the entity.