Wednesday, July 26, 2006

Some Banks Utilize "Affinity Credit Cards" to counter predatory lending

Affinity cards are cards issued by a major bank that also bear the logo of a select charity or nonprofit. Each time you use an affinity card, the issuing bank donates a set amount to the charity/nonprofit.

First USA Partnership

(Letter from First USA Partners 8/99)

I would like to thank you for providing First USA Bank with the opportunity to bid on the affinity credit card business for UEDC. We are currently looking at groups with a membership or 20,000. Unfortunately your current membership of 2,500 does not meet the bank's present size requirements; therefore I must respectfully decline at this time. I wish you success with your organization and will be happy to reevaluate the opportunity as your membership grows.
Suzanne M. Devoe, Vice President Research

June 13, 2006
To: Mr. Douglas Corrigan
Affinity Credit Card Division
JPMorganChase Bank

Mr. Corrigan,
April 4, 2006 a meeting was held at JPMorganChase Bank at the main branch in Ruston, LA. Present from Chase were Mr. Ruben Ramos, Mr. Mizell Scott, Ms. Charlita Cloman. Mr. David Lewis of the OCC, 3 members of the Grambling Community and I the CEO of United Affirmative Action Development Corp (UAAD). Mr. Ramos stated at this meeting that he would put me in touch with a Chase Bank official that would negotiate an affinity credit card program for UAAD members. His estimate was that contact would be made within 24 hours. April 28, 2006 a conference call was held with Mr. Ramos and other Chase Bank officials. Mr. Ramos and Chase officials asked UAAD to submit our proposal, outlining groups, from whence our potential members shall come. The following describes our potential membership pools:

Historic Black Universities and Colleges (HBUC), faculty, students, family members of each community’s ancillary to campuses, anticipated membership: 250 Thousand

UAAD is negotiating a coalition of small banks in the state of Louisiana to assist the Hurricane Victims, with emphasis on the low-moderate income. This process we believe will attract an anticipated membership of approximately: One Million

With an affinity card at a reduced interest rate UAAD will again attract labor unions, truck driver, (owner operators), with an anticipated membership: 250Thousand

Within 3years UAAD with the assistance of the Affinity Credit Card anticipate a membership in excess of : 5 Million

UAAD will need in writing from JPMorganChase Bank an acknowledgment of these negotiations, in order that we may began the process of presenting to our members and potential members.

UAAD/UEDC Hurricane Victims Recovery (HVR) Louisiana Bank Proposal

Attn: CRA Representative
UEDC an affiliate of UNITED AFFIRMATIVE ACTION DEVELOPMENT CORP (UAAD) a 501c3 non-profit propose to create a coalition of small and large banks in the state of Louisiana in order to provide low, moderate-income individual and small businesses to include African Americans (AA) the necessary funding in order to recover from KATRINA, and its aftermath.

UAAD will seek a contribution of 3% of each banks CRA commitment to develop the following programs:
Mobil office and trailer units. These vehicles will be used to service the Hurricane Victims and others. Units will be staged at organization sites, churches, colleges and other locations to assist low-moderate income individuals in loan applications, credit repair, business assistance, legal and other mobile assistance. See:

Promote Coordinate efforts with participating banks to bring financial aid to Hurricane Victims and others. See:

UAAD is in the process of negotiating a low interest Affinity Credit Card that will benefit other participating banks members. See:, credit card program.

UAAD anticipate that the majority of the banks in Louisiana will join and participate in this Hurricane Recovery program.

United Affirmative Action Development Corporation, a 501c3 non-profit, would like to meet with your CRA representative. We would like to have a copy of your CRA files and to discuss the following:
A CRA Proposal From UNITED EQUITY DEVELOPMENT CORP (UEDC) To All Banks In The State of Louisiana for Hurricane KATRINA Recovery.

The suggestions of the COMMUNITY RE-INVESTMENT ACT of 1977 (CRA) is that banks commit at least 10 percent of their assets toward CRA activities. These set asides can be in the form of low interest loans, or contributions.
CRA a part of the civil rights legislation of 1977 was created due to predatory lending, red-lining and discrimination on the part of our nation’s banks.

see: /
UAAD/UEDC will organize a coalition of banks, community organizations, in order to benefit the Hurricane victims. Such a coalition will benefit the banks, low, moderate-income to include AA. /

Utilization of funds:
Finance down payments to low-moderate-income for home purchase, (based on programs JPMorganChase Bank has established).

Provide low (no interest loans to hurricane victims)

Provide low interest business loans to small businesses. (Lower to Katrina Victims).

Contributions to HBUC’s, to increase CRA activities and scholarship programs.

Establish Micro-business Centers at all HBUC’s and other locations where needed. Centers will be assisted by Community Organizations and small banks. Small banks will also serve and assist on Community Loan Committees.

In addition to low interest loans, assistance from business centers, our members will also benefit from UAAD/UEDC’s low interest AFFINITY CREDIT CARD being negotiated with JPMorganChase Bank.

Although UAAD/UEDC has in excess of 20 years involvement in CRA, we are aware that the success of accomplishing our goals we will need a commitment from our nation’s banks, FDIC, Office of the Comptroller of the Currency (OCC) and as many community organizations that will join with us in order to assist the KATRINA victims and others. Our nation’s banks have in excess of $4.2 trillion dollars in CRA commitments. If the CRA ACT has any significance or purpose, now is the time for it to be implemented. See:

We propose a 5 year commitment of 10 percent of assets to be administered by UAAD and other established community organizations. We will be negotiating for UAAD and the coalition will require a reasonable percentage in advance to administer these programs.
We anticipate your in-put and participation.

UEDC will ask small banks to contribute administration assistance in lieu of cash contributions. Such contributions will be in the form of business consultation, serving on community loan committees, teaching CRA and banking in HBUC’s etc. Larger banks will be asked to contribute at least 10 percent of their assets toward these proposed projects for the next 5 years. We believe the FDIC/OCC will consider this proposal to be practical and meet the requirements of the bank(s) obligation to meet prudent banking practices as required under the Community Re-Investment Act of 1977 (CRA).

Based on the conference call April 28, 2006 (see memorandum of call) UAAD ask that you or the appropriate department will meet with UAAD to finalize negotiations.

(Below is a letter to NAACP requesting assistance)


July 26, 2006
To: Mr. Hillary Shelton
Washington, DC Branch NAACP
202 463-2940

Mr. Shelton,
I received your reply to my request dated June 26 2006, and appreciate your assistance. I have not received any reply from NAACP Louisiana state conference, nor Gulf Coast Advocacy Center.
June 16, 2006 a request was forwarded to the office of Mark A. Willis, Executive Vice President Community Development Group JPMorganChase Bank. July 17, 2006 we received a reply from Mr. Willis that stated the following dated July 7, 2006:
..., JPMorganChase

Mark A. Willis
Executive Vice President Community Development Group

July 7,2006

Mr. Walter Ellis
315 Neal Street
Ruston, Louisiana 71270

Re: Affinitv Card Request

Dear Mr. Ellis:

This letter is in response to the proposal of United Affirmative Action Development Corp. ("UAAD"), forwarded to Chase on June 16,2006 by Walter Searcy III, JD, for an affinity card relationship with Chase.

In Chase's April 8, 2006 telephone conference call with you, we said that in order for Chase to enter into an affinity card partnership, we would require a comprehensive business and marketing plan; including: (1) the rights to use and assign use of the logos and brand indicia anticipated for use in marketing campaigns; (2) rights to utilize a qualified list of members of a fair size (approximately 500,000)("Qualified" members could be described as those who contributed to UAAD in the last 24 months or bought from the potential partner in the last year); and (3) the ability to market to UAAD's membership utilizing channels other than bank sponsored direct mail. .

UAAD's proposal is hypothetical and does not meet any of the above requirements. Therefore, we are unable to enter into an affinity card relationship with UAAD. Furthermore, given the lack of any indication that UAAD is capable of meeting the above requirements, we do not believe
that further discussion would be fruitful.

Sincerely yours ~ ~
cc: Walter T. Searcy, III, JD
W ALAR Group
P.O. Box 40187

Nashville,TN 37204-0187

This same date UAAD received a reply from Chase Card Services stating the following:

Executive Office
2500 Westfield Drive IL 1-6215

Elgin, Illinois 60123

July 12, 2006
Walter L. Ellis

315 Neal Street
Ruston, LA 71270

Re: Affinity Credit Card

Dear Mr. Ellis:
I am writing in response to your concerns addressed to Jamie Dimon, Chief Executive Officer at JPMorgan Chase & Co. I appreciate this opportunity to respond to you on behalf of the Card Services Executive Office.
We appreciate your interest in a specific affinity credit card agreement. Please be assured that a copy of your letter has been forwarded to our Business Development Department, so that they may be aware of your comments, concerns, and interests. Their offices will be contacting you directly within the next five to seven business days.
If you have any additional questions or concerns, please feel free to contact me. My hours are Monday through Friday, from 9:30 a.m. to 6:00 p.m. Central Time.
Naomi Butinski
Card Services Executive Office
1-888-622-7547, Extension 6835 or 4350 1-847-488-683 7 (direct line)

cc: Nancy Stoneman
Vice President

Mark Reuling

Senior Vice President

Based on information received from Ms. Naomi Butinski dated July 12, 2006 in a telephone conversation July 20, 2006 she stated I would be contacted by Chase Business Development Department (BDD). Ms. Butinski also stated that I should re-contact her by phone if I did not hear from BDD in the next few days. After not hearing from BDD, I again contacted Ms. Butinski this date July 26, 2006. She stated this date that she would re-contact the BDD again this date and would inform me of their reply.

In order to move these important negotiations forward, we ask any and all assistance the NAACP can provide. We would like to meet ASAP with the appropriate NAACP official in order that we may assist the Katrina Victims, with the necessary help that we believe these negotiations will provide.
Walter L. Ellis, CEO UAAD 866 276-2294

UAAD received a letter from Chase Bank Card Services dated July 12, 2006. We are asking JPMorganChase to clarify this and other recent correspondence.


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