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HAYT, HAYT & LANDAU
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SIXTI. l"1.OOH
.&00 1>tAHKE'f STREl~'f
PIIILADELPJI lA, PA. JOI06'~:'\W
'~Il") 012lJ~ 1-100
FAX ~UI:'\) UL!8-llUl
January 27, 1997
William L. Sunday, Esquire
39 W. Main Street
Mechanicsburg, PA 17055
Re: Household Finance Consumer Discount Company
vs.
Maxine E. Metzger
Case Number 96-3402 Civil
Our File Number: 96000498
Dear Mr. Sunday:
This letter serves as a follow up to my letter of January 21,
1997 with regard to the above captioned case, a copy of which is
enclosed for your convenience. I have now been advised by the
Prothonotary's Office that before I can file a Praecipe to
Discontinue this case, that it is necessary for you to vacate the
appointmert of the Arbitrators. For your convenience, I have also
enclosed a copy of the letter from the Prothonotary's Office.
Any assistance you can provide in this matter will be greatly
appreciated,
Very truly yours,
HAYT, HAYT & LANDAU
EJF/dg
By: {)1.."
Ellen
. J . f) ,jj;",.:;
J, Feinberg, Esquire
Enclosurea
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When thQ Agr~ement was signed with Household Finance I had
all intentions to repay the loan. This suit has happened due
to medical problems, loss of income, and the uncooperation
of Household Finance. In 1992, I contacted Household Finance
and explained that my husband was off work with back problems.
I asked at that time to send in a partial payment and make some
payment changes due to we were not receiving full pay. I was
told that they would not accept any partial payment and they
had to have the full payment. I also contacted every other
Financial place that I had a loan and every place worked with
me and everyone of those places have been paid in full. It is
not that I did not want to pay, it is that they would not accept
anything partial. In 1994, I received a note marked Paid and also
a letter stating that the account was paid in full. After that
date, I never received any statements from Household. On February
7, 1994, I lost my job at a Financial Institution that I had
worked for 22 years. Also, in 1994, my husband had open heart
surgery and was not able to work again. In 1995, he had another
operation and is now on total disability. I am working part-time
at less than 1/2 what my income was before. My husband is getting
1/2 of his normal pay also. We have to pay our own insurance(health).
I had received a notice from Household Finance stating a balance
that they would settle for. I did try to do something about it.
I applied for a loan. There were 2 problems. When the Financial
place ran it through the credit bureau, Household is showing as
a paid in full account. I told this information to Mr. McAlister
from Hayt, Hayt, & Landau. I also contacted the credit bureau and
was given the same information. The other problem was that our
income can not repay a loan. There is no way we c~n sign on a ~oan
and know that we can not pay it back. I had asked Mr. McAlister
to 3end m~ something that J could show the financial place and he
said that he had sent it out. We did not receive it and I asked
him to send it Certified. He told me that he could not do that.
Household had two many people contacting you. One person would
tell you one thing and someone else would call and tell you something
else. One person told me that I should have been able to make Borne
kind of payment each month; Once you get behind, if they won't
accept partial payment, I do not know how they think you could
ever get caught up. If you can't pay tBe full amount that month
how would you pay 3 and 4 month amount at one time.
Another interesting thing happened, in fact, the day after I had
received this notice. Lisa from Household called and said that
she was going through their paid files and wondered if I needed
any additional money at this time. I thought this call was very
interesting. Even Household thinks this account is paid in full.
If Household would have been cooperate from the beginning at least
they would have received some type of payment each month and now
with the change of income, I can not pay it.
The agreement with Household was signed with no collateral, and
at this time I own nothing in my name or did I before.
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CIVIL ACTION
1. Plaintiff, Household Finance Consumer Discount company, is a
corporation duly organized and existing under the laws of the state
of Delaware, authorized to do business in the Commonwealth of
Pennsylvania with offices located at 841 Seahawk circle, virginia
Beach, Virginia 23452.
2. The Defendant(s) Maxine E. Metzger is/are individual(s)
residing at the addressees) contained in the caption of this case.
3. On or about November 18, 1991 Defendant(s) did execut<.l a
Household Finance Consumer Discount company Revolving Loan
Agreement (hereinafter called the Agreement) and did thereafter
receive a revolving credit account #712200-12-742308 with
plaintiff, a true and correct copy of said Agreement being attached
hereto, made a part hereof and marked Exhibit "A".
4. Under the terms of the aforesaid Agreement, Defendant(s) did
receive a revolving credit line in the amount of $ 6,000.00 wherein
Defendant(s) could receive advances (loans) from Plaintiff.
5. Defendant(s) was/were required under the terms of the
aforesaid Agreement to repay said advances (loans) made to
Defendant(s) by Plaintiff in accordance with the repayment schedule
contained within the Agreement.
6. Defendant(s) did on subsequent occasion(s) receive various
advances (loans) from Plaintiff under the aforesaid Agreement.
7. Subsequently, Defendant(s) did default upon the aforesaid
Agreement by failing to make timely installment payment(s) to
Plaintiff and in accordance therewith the entire remaining balance
together with accrued interest became due and payable immediately.
8. The aforesaid Agreement further provides that Defendant(s) in
the event of default shall be liable for the costs of collection
together with reasonable attorney's fees and court costs.
9. As a consequence of the foregoing, there is presently due and
owing by Defendant(s) to Plaintiff, in accord with the terms of the
aforesaid Agreement, the following sums:
Unpaid Balance:
$ 6,085.12
Interest due:
6,853.62
Attorney's fees:
2.587.75
$15,526.49
Total Due:
REVOLVING LOAN AGREEMENT
-:
HOUSaiOlD FINMI':r: (;1,1/.',1([.1 1'''.'~l'i'Nr COMPANY
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Metzger, Maxine E.
120 Emerson Drive
Carlisle PA 17013
LOAN NO:
BORROWERS:
712200-12-742308
____I..,IAl....nty
ON rc)Ilrl()l [f AY(lUlZ OALY IAlAHii"l "~IIAn
.."At ANNUAL
PERCENTAGE
RATE:
. 23.00%
C1IIOlfl""
SlrtRlv,t,(JIII"'lNl
.01 and Over
1. 917%
.
%
In Ihls Agreemlllll. "100:' "your" and "Boltower" mean the customer(s) who slQns Ihls Agleement. "We:' "us:' "our" and "lender" r.ler 10 Hous.hold. This Agreemenl
covers lfie lerms and condlllons 01 your Hou5<lhold Line 01 Cledllloan Account. We wanl you 10 understand how your line of CredllLoan Accounl worlls. Read
Ihls carefully. ask us any quesllons, and II you aglee 10 be bound by IhlS AgrBOmenl, .Ign belOW. II more Ihan one person signs. each will be responsible for repaying
all sums advanced under this Agreement.
\\lur line of Credllls a rllYOlvlng line 01 credll e,lended to you and s.cured as described below. \\1u can oblaln lunds 110m your line 01 Cledlt Loan Account (up
10 your maximum credllllmll) directly 110m us or by using the special checks we supply 10 you, \\lu may pay your tOlal unpaid balance at any time or In Installmenls.
Mulmum Crldll umU: \\1ut ma,lmum credllIImllIs shown above. \t', may oblaln funds directly flom us or Ihrough your special ch.cks unllllhelolal unpaid balance.
Including finance Chatges, 01 your account reaches your ma,lmum cledllllmlt. Each check muSI be wrllt.n lor alleast $100,00. \\lu aglee nollo allow your
lolal unpaid balance, Including finance Charges. 10 excBOd your maximum credllllmlt unless we Inlorm you In WIlling Ihal we have Increased your limit. II you
requesl funds by a special check that would cause you 10 e,ceed your maximum credllllmlt. we are not obllgaled 10 honor II. II we do lend you an amounl over
your maximum credltllmll, you agree 10 pay us Ihat exc.ss amount, plus finance Charges, Immedlalely.
PllmllllD Ply: \\lu promise to pay Household: la) amounts boltowed under this Agreement; (b) Finance Chaloes and other charges provided In this Agreemenl;
lr) Insurance charges, II any; ld) collecllon coSIS permlUed by applicable law, Including reasonable allorneys' lees; (e) amounts In e,cess of your ma,""um credit
limit that we may lend you.
Plym.nll: \\1u may repay your enllre outslandlng balance at any lime wllhoul penalty. \\lu may not use your special checks 10 pay any amounts duo under Ihls
Agreement. Because th. finance Charge Is computed each day. you will conlacl us lor an e'acl payoll amounl for Ihe day you Inlend 10 make full payment. II
you do nol pay Ihe enllra unpaid balance on your account al once, you agree to pay alleasllhe minimum paymenl shown on your monlhly statemenl allhe address
Indlcaled on IIIe monlhly slalemer.l. \\1ur paymenl must be received by us al the address Indicated on the monlhly slalemenl prior to Ihe payment due date shown
on your monlhly slalement. The minimum monlhly paymenl will be Ihe grealer 01 $25 or 2'10 ollhe oulslandlng balance 01 your accounl. plus any credillnsurance
charges. rounded to the nealest $1. HOIW'Ier, nolwlthslandlng Ihe loregolng, we may "'creaselhe minimum monlhly paymenl slated above IIlhe monlhly periodic
rale Increases 10 the e,lent Ihat Ihls minimum monlhly paymenlls Insufflclenllo pay tho finance Charges due for Ihe billing cytle. Each paymenl will be applied
IIrst 10 finance Chatges; second 10 any Insurance chBllles; and third 10 the remaln:ng unpaid balance 01 your account.
Plym.nl DI UnPlld BI/InCl': We reserve Ihe unllalelal right 10 call due your enllre ootslandlng balance. plus all olher accrued bul unpaid charges. al any lime
after six years Triiin the dale 01 this Agreement. II we choose to call1he amounts due under Ihls Agreemenl due and payable pursuant to Ihls 5<lcllon, we will
give you alleasl 90 days prior nollce. Tn no case shall the AQreemenl e,lend beyond IIl1een years 110m Ihe dale of Ihls Agreemenl, al which lime you musl pay
your enllre oUlslandl11tl balance.
Rn.nc. CIllf\l1: The finance Charge Is Ihe Inleresl charged on Ihe balance of your Account. A finance Charge Is calculaled lrom the dale that each advance,
check, or charge Is posted to your account. A finance Charge Is com puled by multiplying the average dally balance In your accounl In each billing cytle limes
Ihe monthty periodic rale. The average dally balance Is determined by lolallng all dally unpaid balances In each billing cytle and dlvldll1tllhe 10lal bv Ihe number
of days In Ihat cytle. A dally unpaid balance Is the amount owed each day, excluding any unpaid finance Charge and Insulance charges lor prior billing cytles.
v.rlIlllt R.f.: \\lu agree thallhe monthly periodic 'ale used In delermlnlng your fln,l!lCe Cl1.arJle will be a va,lable rale which may chal1tle from monlh 10 monlh.
tne monthly p~rlodlc ralo will be one,lwelllh ollhe sum of Ihe Prime Rale plus ~ percenlage polnls.
The Prime Rale will be lhe prime rale published In Ihe "Wall Streel Joornal:' a business newspaper. on the II'SI publication day 01 the monlh In which Ihe billing
period begins. II a lange of rales Is publ~hed. we wlil use the average ollhe rates In Ihe range. Whon a change In the Prime Rale Is published. a change In the
monthly periodic rale will lake ellect on Ihe lirsl day ollhe IIrsl complele billing cycle following the dale 01 the published change. The new rale will apply 10 new
loans and chll/ges, and to Ih. e,lsting balance 01 your account. The Inlllal monthly periodic lale on your Account Is shown abo\1l.
If circumstances such as a change In the law, any coull ruling or discontinued publication ot Ihe Inde, do not perm II us conllnued use of Ihls variable rate Index.
we may chal11le the Inde, according to tha proceduro set oul below In "Te,mlnallon and Changes in the Agreernent:'
An Increase In Ihe Prime Rate may Increase Ihe minimum payment on IOOr account.
I.curtly: 1) n "YES" Is under "Security AQreemenl" abo\1l, I give you a Securlly Inlerest under the Uniform Commercial Code In:
Tlrmln. IlNI Ch n II In th. r..m.nI: WI c.n ch.ng. Ih. '.rml ellhl. Agrum.nl, Including Incrullng you, minimum menlhly plymenl and InClining
I . III. 0 Rnlnc. Ch'f\I" 01 C .ng. Ih. .rI.bf. R.le Index. .1 .ny Um.. Prior wrlll.n nollee win b. pl1lvld.d 10 yeu when required by Ippllc.bl. IIw unl...
you conllnllO Ih. ch.ng. blfolt Ih.1 t1mL Ch.n~.. m.y .pply II bolh n.w .nd eutlllndlng b.lanm unlen pl1lhllited by .ppnc.ble t.w. However. lelmlnallon
01 your cradllllmll will occur only as provided In Ihe 'Oelaun and Cancellation 01 Agreemenl:' "Credilllne Commilmenl" and "Paymenl ot Unpaid Balances" paragIBphs.
Balances oulslandlng under Ihls agreemenl when Ihe credit tlm'lls reduced or lermlnaled will continue 10 accrue Inle'esl al the variable contracl rate unlll paid In full.
Belore signing this AQreement. you have read and received this Agreemenl and Ihn Federal liulh In lending disclosures conlalned In II.
\\lu, the cuslomel(s) Signing below, agree 10 o~sBlYe the lerms and conditions 01 Ihls Agreement.
This loan Is gOYllrned by Ihe provisions 01 Pennsylvania Consumer Olscou/ol Company loan Act and Federallaw.
'\' -:Oy-+-:s.. e.
Cuslomer S~,;;e
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Cuslomer Signalure
Maxine E. Met~er
Cuslomer (Iype name)
Customer (Iype name)
Dale: ---t' jk=/1 - ? I Date
Wllness: (o-tJu..~ f. ~a~ _______
NOTICE: lEE IIfVERIE ailE fOR ADOlTlONAL PftOVlSllINS AND IMPORTANT INf{)RMATIlN REGAROIHG YOUR RIGHTS TO lHSPUTE BILLING ERRORS.
Revolving lDan Agr..ment . PA (VBrlable Aale.Non.R,E,I(8.81J
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Ocraull and Cancellalion of Agreemenl
We have lhe righllo require you 10 pay your enlire balance plus all other accrued bUI unpaid charges immedialely.and 10 cancel
your credil privileges under Ihis Agreement because of: (a) failure 10 make Iwo or lIIore payments when due under Ihts A~reem~nl:
(b) railure 10 supply us wilh any informal ion relaling 10 Ihis 1000n or the sccuril~ we request; (c) supplying us Wtl~ nusleadlnS,
raise. incomplete or incorrecl inrormalion; (d) breaking any of Ihe promises, term~ or condilions Ihat arc containe~ in thts Agreemenl;
(ellhe filing of a bankruptcy pelilion by or againsl you; 10 your dealh; (g) Ihe inslitulion or rorcclosure proceedings on Ihe properly
or lhe inslilUlion or a trustor's sale by a lienholder.
After defaull, you will pay our court costs, reasonable allortley rees lir allortley is not our salaried employee), and other collection
cosls relaled 10 the deraull, if not prohihiled by applicable law.
Credil line Commilment
We may lerminale your ahility to make (uture loa liS through Ihe use o( a spedul check, or to receive un advance rrom us, ror
any of lhe following reasons:
I. You are overdue IWO or ltIore payments;
2. A proceeding has been broughl by or againsl you under a bankruptcy or similar law;
3. You rrequently overdraw your line.or.credit.
Any balance outstanding under Ihis Agreemelll when Ihe credit Iimil is lerminaled or the loan is in derault will conlinue 10 accrue
interesl at Ihe variable contracI rale unlil raid in rull.
Olher Charges
You agree 10 pay any amounls aCluully incurred by UOlL~ehold in connection with the line or Credil Loan Account ror fees
paid 10 public orncials in conneclion with recording and releasing the security interesl on your properly. You agree Ihallhese
rees may be charged 10 your Account balance.
REVOLVING WAN AGREEMENT
(Pagc 21
ADDITIONAL TERMS
YOUR BILLING RIGHTS
KEEP TIlS HOTlCE FOR FUTURE USE
This nollee conlalns Importanllnlormallon about your rights and Household's responsibilllles under Ihe Fair Credit 8i11lng Act.
Natlfy HOUIHold III CII. of Enall or QUllllanl Aboul Your BlU
II you Ihlnk your blllls wrong, or II you need more Inlormallon aboul a transacllon on your bill, wrlle Household on a separale sheel al the
address IIsled on your bill aher Ihe WOlds: "Send your billing error nollce 10: (Household's name and address)". Wrlle to Household as soon
as possible. Household must hear Irom you no later than 60 days aller Household senl you Ihe IlIsI bill on which the error or problem appeared.
You can lelaphona Household, but doing so will nol preserve your rlghls.
In your letter, give Household Ihe 'ollowlng Inlormallon:
. Your name and account number.
. The dollar amounl a. the suspecled error.
· Descrlbe Ihe error and explain, II you can, why you believe Ihere Is an error. II you need more Informallon, describe Ihe ilem you are
nol sure about.
YlOr Rlghtllnd Houllhald'l RllponllblllUel After Houl.hald Rec.lvll Your Wrtttln Hallcl
Household must acknOWledge your leller wllhln 3D days, unless Household has corrected the error by Ihen. Wllhln 90 days, Household musl
ellher correct Ihe error or explain why Household believes Ihe bill was correct.
Aller Household receives your leller, Household cannot try to collect any amounl you question, or report you as delinquent Household can
continue 10 bill you for the amount you question, Including IInanco charges, and Household can apply any unpaid amounl against your credit
limit You do nol have 10 pay any quoslloned amount while Household is Invesllgallng, but you are sllll obligated 10 pay Ihe pails a. your bill
that are not In question.
II tfousehold 'Inds Ihat Household made a mistake on your bill, you will nol have 10 pay any IInance charges related 10 any questioned amount
II Household did nol make a mistake, you may have 10 pay finance charges, and you will have 10 make up any missed paymenls on the questioned
amount In ellher case, Household will send you a slatement of Ihe amounl you owe and the dale thai Ills due.
If you 'alllo pay the amountlhat tfousehold thinks you owe. Household may report you as delinquent However, If Household's explanallon
daiS not satisfy you and you wrlle to Household wllhln len days tell!ng Household Ihal you sllll refuse 10 pay. Household must lell anyone
tfousehold reports you 10 thaI you have a question about your bill. And, Household musllell you Ihe name 01 anyone Household reported you
to. Household must lell anyone Household reports you 10 Ihat the mailer has been sellled belween us when It finally Is.
If Household doesn'llollow these rules, Household can't collect Iho flrsl $50 ollhe queslloned amounl, even II your bill was correct.
PA
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