iowa card
Bank of America America Affinity Agreement
Bank of America Affinity Credit Card Partnership
The University of Iowa Alumni Association has made available on its website the full text of its agreement with Bank of America pertaining to the Association’s affinity credit card program for alumni and friends of the University. While the agreement contains a confidentiality covenant typical to agreements of this kind, the Alumni Association is aware of public interest in this agreement. The Alumni Association has previously received a single request for disclosure of the agreement, by a member of the news media, and at that time declined to provide a copy pending only resolution of its contractual confidentiality obligation under the agreement. The Alumni Association is now very pleased, with Bank of America’s full cooperation, to be able to make available the entire text of the agreement. This is consistent with the Association’s desire to be open and transparent in all of its programs and activities for the benefit of its members and the University of Iowa. The Alumni Association intends that this disclosure be useful in providing accurate information to all those who may have an interest in the Association’s Affinity Credit Card Program.
We feel it is important to provide some context to the agreement in order for you to gain an appreciation for the value that a relationship like this brings to the Alumni Association and to the University.
We have been working with Bank of America for 12 years to develop and enhance our credit card program. The vast majority of our marketing is targeted to alumni and supporters of the University through channels such as direct mail, telemarketing, e-mail, and promotions at home football games. To date, more than 37,000 alumni, fans and University supporters carry the University of Iowa Alumni card.
In addition to alumni and supporters of the University, our agreement also allows for the marketing to students. During 2007, Bank of America’s student marketing has consisted of 3 direct mail campaigns, 1 telemarketing campaign, and 2 days of tabling on campus (excluding football games). Two hundred nine (209) University of Iowa students carry and use the University of Iowa Alumni Association Card. The average balance for these students is $1,054. Each time Bank of America approves a student credit card account and sends the card to the student, a brochure is inserted in the package and includes credit score education and tips on how to manage credit, establish a budget and protect against identity theft.
Bank of America charges lower late and over-limit fees for student credit card accounts and does not increase the APRS on student credit card accounts due to non-payment or an increase in credit risk.
The royalties paid to the University of Iowa Alumni Association are in the amount of $1MM per year, through the end of the agreement in June of 2013. More than 99% of these royalties are attributed to the accounts generated through the alumni, university supporters and fans portion. These royalties support a significant portion of the programs and activities of the Association that benefit Association members and the University of Iowa.
The agreement also contains the Rewards Agreement that outlines an Iowa customized rewards program where customers can redeem earned points for experiential items. Some of the rewards provide cardholders with the opportunity to receive sports memorabilia, tickets and to experience, up-close, University athletic events and activities. These rewards are intended to enhance the affinity of Alumni to their University.
Open the agreement >>
(PDF format, 51 pages, file size 37 MB)
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