Transactional Banking
Attorneys at Connolly Bove Lodge & Hutz LLP have extensive experience in the structuring, negotiation and creation of joint marketing agreements, and affinity/co-brand agreements in connection with the offering of financial service products such as endorsed credit card, line of credit and deposit products.
Joint Marketing, Affinity/Co-Brand Agreements
Pursuant to such arrangements, an issuing bank or other financial institution agrees to offer and issue a financial service product (such as a credit card, unsecured line of credit or deposit product) either to the customer base of another financial institution, or to the customer base of a non-profit organization or commercial entity, typically on an exclusive basis. In either case, the issuing institution extensively employs the trademarks or service marks of its partner in offering and administering such program.
Such arrangements are attractive to financial institutions that cannot cost-effectively offer a competitive financial product to its customers, or that do not care to administer such a product. Non-financial institutions seek such programs as a way to increase the visibility of their brand, to build customer loyalty for their brand/product, and/or to garner additional income or funding for their organization’s charitable purpose.
In connection with such agreements, the affinity/joint marketing partner may already hold a portfolio of accounts for the products to be offered. Such portfolios are often sold to the chosen new provider as a feature of such deals.
Phases of Acquisition
Attorneys have also represented and advised lenders in all phases of such acquisitions, including the confidentiality agreement, responding to requests for proposal, portfolio due diligence, contract negotiation and drafting, interim servicing, change of terms (and related legal and marketing disclosures), and eventual conversion onto the buyers’ processing systems.
Specialized Experience
Connolly Bove Lodge & Hutz LLP can provide assistance in drafting and negotiating many forms of contracts which are typically entered into by financial institutions. They are aware of the special considerations and legal requirements which certain financial institutions may need to consider in structuring and drafting such agreements.
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