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C. The 1987 Affinity Credit Card Agreement
On November 20, 1987, petitioner and PB&T agreed (1987
agreement) that PB&T would administer an affinity card program
targeted to petitioner's members.
1. Terms of the 1987 Agreement
The 1987 agreement was to be effective for 3 years.
Thereafter, it would be automatically renewed for terms of 1
year, unless either party notified the other in writing at least
90 days before the end of the initial or current renewal term
that it would not renew the agreement.
PB&T agreed to apply its customary credit policies to credit
card applications from petitioner's members. Cardholder
agreements between PB&T and the cardholders were to govern cards
that PB&T issued.
PB&T offered the VISA Classic and MasterCard Red and Ochre
under the 1987 agreement. PB&T agreed to charge each cardholder
an annual fee of $9, to use an interest rate of 15.96 percent,
and to consult with petitioner before raising the rate.
PB&T agreed to provide the following services at no cost to
the cardholders: $200,000 air/common carrier insurance,
collision damage waiver on automobile rental, emergency cash
service, and a travel service. PB&T agreed to offer credit life
insurance, credit disability insurance, and unemployment
insurance to cardholders at the cardholder's expense.
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Last modified: May 25, 2011