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HomeMy WebLinkAbout01-6030LSE:bf lse~Ca-cover.cum Larry S. Eisman, Esquire ID #19738 705 Montgomery Ave., 2nd Floor PO Box 527 Narberth, PA 19072 610 664 1999 Arbitration Matter Attorney for Plaintiff NCMIC Finance Corporation, dba NFC Finance Corporation 1452 29th Street, Suite 102 West Des Moines, IA 50266-1307 Gary J. Leidy : 40 Queen Ave. : Enola, PA 17025 : Court of Common Pleas Cumberland County CIVIL ACTION NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS NOTICE TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SENT FORTH BELOW TO FIND OUT WHERE YOU CA/q GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Ave. Carlisle, PA 17013 717 249 3166 800 990 9108 Plaintiff State of Iowa with a place of business as indicated. to do business in the Commonwealth of Pennsylvania. Count I -- Breach of Contract is a corporation organized and existing under the laws of the Plaintiff is authorized 2. Defendant is an individual with an address as listed above. 3. Defendant applied and was accepted for an NCMIC Finance Corp. VISA card, the use of which was governed by the terms of the Cardholder Agreement. A copy of the Application is attached hereto, made a part hereof and is marked Exhibit "A". A copy of Cardholder Agreement is attached hereto, made a part hereof and is marked Exhibit "B." 4. The defendant used the VISA card over a period of time by charging merchandise, goods and/or services as permitted. Defendant also made payments as required under the terms of the Cardholder Agreement. Defendant received credit for all payments received by plaintiff. 5. As evidenced by the Statement with a closing date of August 25, 2000, defendant paid charges of $2,969.76 from prior billing cycles, and incurred charges in that current cycle in the amount of $3,872.57. A copy of the Statement referred to is attached hereto, made a part hereof and is marked Exhibit "C." 6. Defendant continued to use the card, but never returned to a "zero" balance. Copies of Statements with closing dates of September & October 25 are attached hereto, made a part hereof and are marked Exhibits "D" & "E." 7. Even though he and/or his authorized representative continued to use the card to purchase merchandise, goods and/or services, the last payment credit on this account was in the amount of $834.74 on October 9, 2000. The Statements with closing dates on the 25th of November 2000 through February 2001 are attached hereto, made a part hereof and are marked Exhibits "F", "G", "H" and "I." 8. Despite repeated requests and demands for payment made by plaintiff and/or its representative, the defendant failed and refused, and continues to fail and refuse to pay the balance due and owing. 9. The defendant's failure to make timely payments is a breach of the Application and the Cardholder Agreement. 10. Plaintiff is entitled to reasonable attorney fees in accordance with Exhibit "B". It is averred the attorney fees claimed are reasonable. 11. By using the card, defendant agreed to repay same, in whole or in part, on a monthly basis as required by Exhibit "B". 12. The balance due is as follows: Outstanding balance Interest from the date of last payment (October, 2, 2000) through October 2, 2001 at 6% per annum Attorney fees (20%) of outstanding balance Total balance due and owing $11,241.94 730.73 2,248.39 $14,221.06 Wherefore plaintiff prays this Honorable Court to enter a judgment in favor of the plaintiff and against the defendant in the amount prayed for in paragraph 12 of the Complaint plus continuing interest, costs and such other relief as may be deemed just and proper. Count II -- Account Stated 13. Paragraphs 1 - 12 are incorporated by reference as if fully set forth herein. 14. From the inception of the account, Defendant received monthly statements itemizing all purchases, charges, fees and credits. 15. At no time did defendant dispute the fact that he authorized the charges which appeared on his Statements. 16. At no time did defendant claim he was not given credit for payments received by plaintiff. 17. As a result thereof, defendant is liable to plaintiff on the theory of Account Stated. Wherefore plaintiff prays this Honorable Court to enter a judgment in favor of the plaintiff and against the defendant in the amount prayed for in paragraph 12 of the Complaint plus continuing interest, costs and such other relief as may be deemed just and proper. Count III -- Unjust Enrichment 18. Paragraphs 1 - 17 are incorporated by reference as if fully set forth herein. 19. Defendant used the card issued by plaintiff to purchase merchandise, goods and/or services for his personal and professional benefit and for the benefit of those defendant designated to receive such benefit. 20. Defendant purchased, among other things, monthly on-line service and and airline tickets to and from Cancun, Mexico. 21. Defendant has been unjustly enriched at the expense of the plaintiff by receiving said merchandise, goods and/or services and thereafter failing and refusing to pay for same. Wherefore plaintiff prays this Honorable Court to enter a judgment in favor of the plaintiff and against the defendant in the amount prayed for in paragraph 12 of the Complaint plus continuing interest, costs and such other relief as may be deemed just and proper. Count IV -- Fraud 22. Paragraphs 1 - 21 are incorporated by reference as if fully set forth herein. 23. By letter dated June 17, 2001, defendant made demand on plaintiff for the return of $11,700.47 which funds, defendant claimed, were "deposited with your organization." A copy of defendant's letter is attached hereto, made a part hereof and is marked Exhibit "J." 24. Defendant knew he did not have a deposit on account with plaintiff. 25. When asked to do so by counsel for the plaintiff, defendant failed and refused to present documentation of his "deposit." 26. Defendant further knew that while he continued to use the card for his benefit, he had not made a payment on account in almost 9 months. 27. attempt was not plaintiff financially while conferring a monetary benefit Said letter and the demand contained therein represent a fraudulent on the part of the defendant to claim a benefit to which he knew he entitled. The natural, intended consequence of the fraud was to harm on defendant. 28. Plaintiff seeks additional damages of $5,000.00 for the fraud defendant attempted to perpetrate on plaintiff. Wherefore plaintiff prays this Honorable Court to enter a judgment in favor of the plaintiff and against the defendant in the amount prayed for in paragraph 12 of the Complaint plus additional damages for attempted fraud in the amount of $5,000.00 plus continuing interest, costs and such other relief as may be deemed just and proper. Respectfully submitted Larry S. Eisman Attorney for Plaintiff lse~ca-cc Sep 22 O1 11:45~ La~ S. Eisman ~10 ~8 3~5 p.8 NCMIC v. Leidy VERIFICATION The undersigned Lynn Chambers, Financial Services Manager for plaintiff herein, verifies that the statements made in the foregoing Civil Action are true and correct to the best of her knowledge, information and belief. The undersigned further understands that the statements therein are made subject to the penalties of 18 Pa C.S. Section 4904 relating to unsworn falsification to authorities. Lynn Chambers Financial Services Manager NCMIC Finance Corporation Date :_ ~/-~q -0 / i! M-28934 CARDHOLDER AGREEMENT SPECIAL RULE FOR CREDIT CARD PURCHASE~; NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 NFl0 55930093 09/19/00 PI-EASE WRITE BI PA~iIENT NEdV ACCOUNT NUMBER AMOUNT OF DUE DATE BALANCE 3872.57 5455 8912 0000 2906 P12 GARY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 DETACH AND REMIT THIS PORTION TELEPHONE NO: 888-903-0141 1 DAYS BI STA~gUENT PAYMENT DUE MBIIJUM ACCOUNT NUMBER CREDIT AVAILABLE BILLING UMIT CREDIT CYEI_E CLOSING DATE DA'IE PAYMENT DUE 5455 8912 0008 2906 10000 6052 31 08/25/00 09/19/00 116.00 DATE OF PREVIOUS PURCHASES AND DEBIT FINANCE NL~q BALANCE PAYMENTS CREDITS CASH ADVANCE ADJUSTMEN'rS CHARGI=S BALANCE AN AMOUNT FOLLOWED BY A MINUS SION (--) IS A CREDIT OR A CREDIT BALANCE UNLESS OTHERWISE INDICATED. AVERAGE DAILY BALANCE METHOD: lC NOTICE: FOR BILUNO ERRORS AND iMPORTANT INFORMATION. SEE REVERSE SIDE C( ,} NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 0.00 09/19/00 3872.57 NFl0 55930093 ACCOUNT NUMBC-R 5455 8912 0000 2906 AMOUNT OF GARY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 P12 DETACH AND REMIT THIS PORTION TELEPUONE NO: 888-903-0141 2 2 PREVIOUS PURCHASES AND DEBIT FINANCE NEW BALANCE PAYMENTS CREDITS CASH ADVANCE ADJUSTMENTS CHARQBS BALANCE AN AMOUNT FOLLOWED BY A MINUS SIGN (--) IS A CREDIT OR A CREDIT BALANCE UNLESS OTHERWISE INDICATED. AVERAGE DAILY BALANCE METHOD: METHOD I 11C NOTICE: FOR BILLING ERRORS AND IMPORTANT INFORMATION, SEE REVERSE SIDE NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 : 0,00 0.00 10/20/00 4382.79 I NFl0 iIC 7 25 1 55930021 5455 8912 0000 2906 PLEASE WRITE IN J AMOUNT DF GARY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 P12 TELEPHONE NO: 888-903-0141 1 5455 8912 0000 2906 10000 5617 31 09/25/00 10/20/00 0.00 PREVIOUS F~,IRCHA~ES AND DEBIT FINANCE NEW BALANCE PAYMENTS CREDITS CASH ADVANCE ADJUSTMENTS CHARGES BALANCE AN AMOUNT FOLLOWED BY A MINUS SIGN (-) IS A CREDIT OR A CREDFT BALANCE UNLESS OTHERWISE INDICATED. AVERAGE DALLY BALANCE METHOD: lC NOTICE: FOR BILLING ERRORS AND IMPORTANT INFORMATION, SEE REVERSE SIDE NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 0.00 NFl0 55930021 10/20/00 4382.79 5455 8912 0000 2906 GARY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 P12 DETACH AND R, EMIT THIS PORTION TELEPHONE NO: 888 - 903 - O141 2 2 ~EWARDS EARNED THIS ONTH: 35.03 POTAL REWARDS EARNED: TO DATE: 183. 51 PREVIOUS PURCHASES ,MID DEBIT FINANCE NEW BALANCE PAYMEAq'S CREDITS CASH ADVANCE ADJUSTMENTS CHARGES BAI. ANC~ 3872.57 1882.57 0.00 2335.17 0.00 57.62 4382.79 AN AMOUNT FOLLOWED BYA MINUS SIGN (-) IS A CREDIT ORA CREDIT BALANCE UNLESS OTHERWISE INDICATED. AVERAGE DAILY B,N..ANCE METHOD: METHOD 1 lC NOTICE: FOR BILLING ERRORS AND IMPORTANT INFORMATION, SEE REVERSE SIDE NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 ~ PAST DUE PAYM~IT 0.00 0.00 11/19/00 ~'rece~t..Payments re~ at ar~ e~er ~ca~on ma~ be sub,ct NFl0 55930003 8305.85 5455 8912 0000-2906 GARY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 P12 DETACH AND REMIT THI0 PORTION TELEPHO#E NO: 888-903-0141 1 2 PRE¥1OUS PURCHASES AND DEBIT FINANCE NEW BALANCE PAYMENTS CREDITS CASH ADVANCE AD,J US'T~E~JTS CHARQES BALANCE AN AMOUNT FOLLOWED BY A MINUS SIGN (--) 18 A CREDIT OR A CREDIT BALANCE UNLESS OTHERWISE INDICATED. AVERAGE DALLY BALANCE METHOD: 11C NOTICE: FOR BILLING ERRORS AND IMPORTANT INFORMATION, SEE REVERSE SIDE NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 0.00 0.00 DUE DATE 11/19/00 8305.85 5455 8912 0000'2906 NFl0 IIC 7 25 1 55930003 GARY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 P12 DETACH AND REMIT THIS PORTION TELEPHONE NO: 888-903-0141 2 2 AN AMOUNT FOLLOWED BY A MINUS SIGN (-) IS A CREDIT OR A CREDIT BALANC~ UNLESS OTHERWISE INDICATED. AVERAGE DAILY BALANCE METHOD: METHOD 1 llC NOTICE: FOR BILLING ERRORS AND IMPORTANT INFORMATION, SEE REVERSE SIDE NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 0.00 i 0.00 12/20/00 9771.95 5455 8912 0000 2906 GARY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 NFl0 iIC 7 25 1 55930002 P12 DETACH AN{) REMIT THIS PORTION TELEPHONE NO: 8 8 8 - 9 0 3 - 01 4 1 i 10/30/00 1 XD Y XAA XAO 1031 110 7843286N100NR53ZQ AOL*ONLINE SERVICE 100 800-679-9444 VA 21.95 PREVIOUS PURCI'IASE$ AND DEBIT FINANCE NEW BALA~JCE PAYMENTS CREDITS CASH ADVANCE ADJUS'"~IENTS CHAR~I=~ BALANCE AN AMOUNT FOLLOWED BYA MINUS SIGN (--) IS A CREDIT ORA CREDIT BALANCE UNLESS OTHERWISE INDICATED. AVERAGE DAILY BALANCE METHOD: lC NOTICE: FOR BILLING EF~F~ORS AND IMPORTANT INFORMATION, SEE REVERSE SID NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 ~ PAST DUE  0.00 0.00 12/20/00 NFl0 55930002 9771. 95 5455 8912 0000 -2906 GAEY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 P12 DETACH AND REMIT THIS PORTION TELEPHONE NO: 8 8 8 - 9 0 3 - 014 1 2 2 AN AMOUNT FOLLOWED BY A MINUS SIGN (--) IS A CREDIT OR A CREDIT BALANCE UNLESS OTHERWISE INDICATED. AVERAGE DA~LY BALANCE METHOD: ME?eOD 1 CORRESP(~)~4G ~U~L PE~CENT~E R~TE 15.50 15.50 999999 0.00 0.00 999999 0.00 0.00 ~0NTHLY PE~0DIC EATE$ 1.292 1.292 N/A 0.000 0.000 N/A 0.000 0.000 lC NOT~CE: FOR BILUNG ERRORS AND IMPORTANT INFORMATION, SEE REVERSE SIDE NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 NFl0 55930008 GARY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 P12 DETACH AND REMIT THIS PORTION TELEPHONE ~0: 888-903-0141 PREVIOUS PURCHASES,AND DEBIT FINANCE NEW BALANCE PAYMENTS CREDITS CASH ADVANCE ADJUSTMENTS CHAR(~I=S BALANCE 9771.95 0.00 0.00 1021.95 0.00 124.57 )918.47 AN AMOUNT FOLLOWED BY A MINUS SIGN (-) IS A CREDIT OR A CREDIT BALANCE UNLESS 0THERIAqSE INDICATED. AVERAGE DAILY BALANCE METHOD: METHOD I 11C NOT~CE: FOR BILUNG ERRORS AND IMPORTANT INFORMATION, SEE REVERSE SIDE NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 1889.74 337.74 ~ ~lru Fr~ay I~i~ b, c~ad t3 ~ ac¢~ as ~ tie dale 02/19/01 BALAgCE 11077.34 NFl0 55930001 GARY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 P12 DETACH AND ~MIT THIS PORTION T~LEPHONE NO: 888-903-0141 PREVIOUS PURCHASES AND DEBIT FINANCE NEW BALANCE PAYMENTS CREDITS CASH ADVANCE ADJUSTMENTS C~I~R(~ES BALANCE AN AMOUNT FOLLOWED BY A MINUS SIGN (--) IS A CREDIT OR A CREDIT BALANCE UNLESS OTHERWISE INDICATED. AVERAGE DAILY BALANCE METHOD: METHOD 1 ~9.LP~TAGE RATE i 5.5 0 c,~s~ ~$ ,~T~SC~W~ ~ PtmCI.~ I~r~s<:~u~ ~ ~.tq~c~ 11C NOTICE: FOR BILLING ERRORS AND IMPORTANT INFORMATION, SEE REVERSE SIDE NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 NFl0 55930001 GARY LEIDY D.C. 433 N ENOLA RD ENOLA PA 17025-2128 P12 DETACH AND REMIT THIS PORTION TELEFRONE NO: 888 - 903 - 0141 1231 0102 7843286PY00L7KWTH AOL*ONLINE SERVICE 120 800-679-9444 VA 21.95 *FINANCE CHARGE* PUl CHASES $136.92 CASH ADVANCE $0.00 136.92 TOTAL *FINANCE CHAR E* PAID IN 2000 $847.45 ~OTAL REWARDS EARNED TO DATE: 289.00 I~EVIOUS PURCHASES AND DEBIT FINANCE NEW BALANC;: PAYMEH'i~ CREDITS CASH ADYANCE ADJUSTMENTS C}.L4,~(~I=S Ra~ ~'"CE 10918.47 0.00 0.00 21.95 0.00 136.92 1L077,34 AN AMOUNT FOLLOWED BYA MINUS SIGN (-) IS A CREDIT ORA CREDIT BALANCE UNLESS OTHERWISE INDICATED. AVERAGE DAILY BALANCE METHOD: METEOD 1 FOR CYCLE FEE C H.R, RB E 16.99 10580.73 I 0.00 0.00 11C NOTICE: FOR BILLING ERRORS AND IMPORT. Z%NT INFORMATION. SEE REVERSE SiDE NCMIC FINANCE CORP PO BOX 3038 EVANSVILLE IN 47730-3038 NFl0 iIC AX7 25 1 55930002 5455 8912 0000-2906 GARY LEIDY D.C. 40 QUEEN AVE ENOLA PA 17025-2323 P12 DETACH AND REMIT THIS PORTION TELEPHOI, IE NO: 888-903-0141 5455 8912 0000 2906 10000 NONE 31 02/25/01 03/22/01 661,65 02121 0212 75432861B00TFQYTF AOL*ONLINE SERVICE 010 800-679-9444 VA 21.95 022.= 022 LATE FEE 10.00 *FINANCE CHARGe* PUl CHASES $132. 65 CASH ADVANCE $0.00 132. 65 kEWARDS REDEEMED: 289.00 I:~REVIOUS PURCHASE': AND DEBIT FINANCE ~IEW BALANCE PAYMENTS CREDITS CASH ADVA#CE ADJUSTMENTS CHARGES .a~ AHCE 11077.34 0.00 0.00 21.95 10.00 132.65 1L241.94 AN AMOUNT FOLLOWED BY A MINUS SIGN (-) IS A CREDIT OR A GREDIT BALANCE UNLESS OTHERWISE INDICATED. THE NEW ADDRESS CAN BE FOUND ON YOUR PAYMENT STUB. PLEASE TO THE OLD ADDRESS COULD CAUSE DELAYS IN PROCESSING. A%~RAG5 DAItYSAtANOEMSIHOD~ METHOD 1 CORR~E~ONINN6 ANNU,N. PERCENTAGE RATE 15.00 15.00 999999 0.00 0.00 999999 0.0~ 0.00 ~ONTHLY PERJODIC RATES 1.250 1.250 N/A 0.000 0.000 N/A 0.000 0.000 11C NOTICE: FOR BILLJNG ERRORS AND IMPORTANT INFORMATION, SEE REVERSE SIDE Gary J. Leidy 40 Queen Avenue Enola, Pa. 17025 NCMIC Finance Corp. c/o Larry S. Eisman 705 Montgomery Avenue PO Box 527 Narberth, Pa. 19072 Certified Mail No. 6/17/01 Re repayment of deposit Greetings: Thank you for taking a moment to review this request; On 5/25/01, I deposited $11,700.47 with your organization and I am now requesting that you return it to me. I do not find any repayments terms in the vwitten agrccment, so please return my full deposit within thirty [30] days. The account number is:5455 8912 0000 2906. Bestregads, Gary J. Leidy SHERIFF'S RETURN - CASE NO: 2001-06030 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND NCMIC FINANCE CORP ET AL VS LEIDY GARY J REGULAR DOUGLAS DONSEN , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon LEIDY GARY J the DEFENDANT , at 2105:00 HOURS, at 40 QUEEN AVENUE ENOLA, PA 17025 GARY LEIDY on the 7th day of November , 2001 by handing to a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 10.40 Affidavit .00 Surcharge 10.00 .00 38.40 Sworn and Subscribed to before me this ~6~ day of ~~ ~2~/ A.D. IP~othonotary So Answers: R. Thomas Kline 11/13/2001 LARRY S EISMAN -- - - 'Deputy Sheriff STATE OF PENNSYLVANIA SS COUNTY OF CUMBERLAND I, Gary J. Leidy, do hereby solemnly affirm that the statements herein are true and correct in substance and in fact, to wit: I recently requested copies of various publications published by several branches of the Federal Reserve Bank. The quotes reproduced below are taken verbatim from several of these publications. They explain that the customer of a bank is the depositor when he obtains a loan and that he is entitled to the return of his deposit. The explanations you will read below admit that banks or depository institutions within the Federal Reserve System do not loan money from their own assets but rather, they create money by simply entering the amount created or crediting it in an accounting ledger. Hats the Federal Reserve Wears Federal Reserve Bank of Philadelphia Public Affairs Department P. O. Box 66 Philadelphia, PA 19105-0066 215-574-6115 Page 6, Paragraph 3: "Money for loans comes from two sources: 1) people who have saved and are willing to lend their savings; and 2) institutions such as banks, which have the power, within limits, to create money in checking-type accounts when they make loans." Page 8, Paragraph 3: "Federal Reserve notes are the only kind of paper money issued today." Modern Money Mechanics Federal Reserve Bank of Chicago Public Information Center P. O. Box 834 Chicago, IL 60690-0834 312-322-5111 Page 3, Second Column, Paragraph 1: "Who Creates Money? ... The actual process of money creation takes place primarily in banks .... checkable liabilities of banks are money. These liabilities are customers' accounts. They increase when customers deposit currency and checks and when the proceeds of loans made by the banks are credited to borrowers' accounts .... Then, bankers discovered that they could make loans merely by giving their promises to pay, or bank notes, to borrowers. In this way, banks began to create money .... Transaction deposits are the modern counterpart of bank notes. Page 7, Example 3, Expansion-Stage 1: "Expansion takes place only if the banks that hold these excess reserves increase their loans or investments. Loans are made by crediting the borrower's deposit account, i.e., by creating additional deposit money." "Stage 7: Expansion continues as the banks that have excess reserves increase their loans by that amount, crediting borrowers' deposit accounts in the process, thus creating still more money." Points of Interest Federal Reserve Bank of Chicago Public Information Center P. O. Box 834 Chicago, IL 60690-0834 312-322-5111 Page 6-7, Paragraphs 7-10: "Banks and Deposit Creation Depository institutions, which for simplicity we will call banks, are different from other financial institutions because they offer checking accounts and make loans by lending checkbook deposits. The deposit creation activity, essentially creating money, affects interest rates because these deposits are part of savings, the source of the supply of credit. Banks create deposits by making loans. Rather than handing cash to borrowers, banks simply increase balances in borrowers' checking accounts. Borrowers can then draw checks to pay for goods and services. This creation of checking accounts through loans is just as much a deposit as one we might make by pushing a ten-dollar bill through the teller's window. With all of the nation's banks able to increase the supply of credit in this fashion, credit could conceivably expand without limit .... When banks create checkbook deposits, they create money as well as credit since these deposits are part of the money supply." Two Faces of Debt Federal Reserve Bank of Chicago Public Information Center P. O. Box 834 Chicago, IL 60690-0834 312-322-5111 Page 19, Paragraphs 3-5: "For an individual institution, they arise typically when a depositor brings in currency or checks drawn on other institutions. The depositor's balance rises, but the currency he or she holds or the deposits someone else holds are reduced a corresponding amount. The public's total money supply is not changed. But a depositor's balance also rises when the depository institution extends credit-either by granting a loan to or buying securities from the depositor. In exchange for the note or security, the lending or investing institution credits the depositor's account or gives a check that can be deposited at yet another depository institution. In this case, no one else loses a deposit. The total of currency and checkable deposits-the money supply-is increased. New money has been brought into existence by expansion of depository institution credit. Such newly created funds are in addition to funds that all financial institutions provide in their operations as intermediaries between savers and users of savings. But individual depository institutions cannot expand credit and create deposits without limit. Furthermore, most of the deposits they create are soon transferred to other institutions. A deposit created through lending is a debt that has to be paid on demand of the depositor, just the same as the debt arising from a customer's deposit of checks or currency in a bank." On 10/2/01, I deposited $11,972.67 with NCMIC Finance Corp.. I provided the funds for this account with my deposit. The account number was 5455 8912 0000 2906. I paid fees and interest for this service. NCMIC Finance Corp. paid me nothing for my deposit. Affiant STATE OF PENNSYLVANIA ) ss COUNTY OF CUMBERLAND Subscribed and sworn to before me a notary public this 26 day of November 2001. Signature of notary Notarial Seal Steven B. Worley. Notary Public . ~Ea_~ Pennsboro Twp. CumberlandCounty My ~.;ommission Expires Dec. 10, 2004 Member, Per~nsylvania Association of Notaries [Is] CERTIFICATE OF SERVICE I,Gary J. Leidy, hereby certify that a copy of the foregoing was sent to Plaintiff's attorney :Larry S. Eisman, at :705 Montgomery Ave. PO Box 527 Narberth Pa. 19072, by first class U.S. mail on this 26 day of November, 2001. By:Gary J. Leidy COURT OF COMMON PLEAS, CUMBERLAND COUNTY STATE OF PENNSYLVANIA NCMIC FINANCE CORP. d/b/a/NFC FINANCE CORP. PLAINTIFF / COUNTER DEFENDANT, Case No.: 01-6030-Civil Term GARY J. LEIDY DEFENDANT / COUNTER PLAINTIFF. ANSWER 1. As to plaintiff first allegation, Count I in the complaint, defendant does not have sufficient information to either admit or deny. 2. As to plaintiff's second allegation in the complaint, defendant does not have sufficient information to either admit or deny. 3. Defendant denies 4. Defendant denies 5. Defendant denies 6. Defendant denies 7. Defendant denies 8. Defendant denies 9. Defendant denies 10. Defendant denies 11. 12. )laintiff's allegation number 3. )laintiff's allegation number 4. )laintiff's allegation number 5. )laintiff's allegation number 6. )laintiff's allegation number 7. )laintiff's allegation number 8. )laintiff's allegation number 9. )laintiff's allegation number 10. Defendant denies plaintiff's allegation number 11. Defendant denies plaintiff's allegation number 12. As to all allegations not specifically admitted under Count I in the complaint, they are hereby denied. 13. Defendant denies plaintiff's allegation number 13 of Count II incorporated by reference paragraphs 1 - 12, by plaintiff. 14. Defendant denies plaintiff's allegation number 14. 15. Defendant denies plaintiff's allegation number 15. 16. Defendant denies plaintiff allegation number 16. 17. Defendant denies plaintiffs allegation number 17. As to all allegations not specifically admitted under Count II in the complaint, they are hereby denied. 18. Defendant denies plaintiff's allegation number 18 of Count III in the complaint, incorporated by reference, paragraphs 1 -17, by plaintiff. 19. Defendant denies plaintiff's allegation number 19. 20. Defendant denies plaintiff's allegation number 20. 21. Defendant denies plaintiff's allegation number 21. As to all allegations not specifically admitted under Count III in the complaint, they are hereby denied. 22. Defendant denies plaintiff's allegation number 22 of Count IV in the complaint, incorporated by reference, paragraphs 1 - 21, by plaintiff. 23. Defendant admits being the depositor of funds into account; denies remainder. 24. Defendant denies plaintiff's allegation number 24. 25. Defendant denies plaintiff's allegation number 25. 26. Defendant denies plaintiff's allegation number 26. 27. Defendant denies plaintiff's allegation number 27. 2 28. Defendant denies plaintiff's allegation number 28. As to all allegations not specifically admitted under Count IV in the complaint, they are hereby denied. 29. Defendant demands a jury trial. AFFIRMATIVE DEFENSES PAYMENT On or before the commencement of this action, defendant deposited an amount of money equal to the value of the note with the plaintiff. Plaintiff has not returned this deposit. COMPLAINT FAILS TO STATE A CAUSE OF ACTION The complaint fails to state a cause of action upon which relief can be granted. Plaintiff fails to allege the existence of any loan or basis for the alleged losses. The complaint fails to state the date upon which the purported agreement was commenced or upon which the defendant purportedly submitted an application for a "charge card." The complaint fails to mitigate alleged damages. FAILURE OF CONSIDERATION Plaintiff risked none of its assets in this purported agreement. ACCORD AND SATISFACTION Plaintiff accepted payment on the date of March 2001 as full accord and satisfaction for the purported debt. BREACH OF CONTRACT Defendant provided the funds for the disputed account with a deposit and plaintiff never returned the deposit to the defendant as agreed. OFFSET Defendant is entitled to offset of the purported debt in an amount equal to the credit limit. 3 DATED this 26 day of November, 2001. Gary J. Leidy, Defendant/Counter Plaintiff 40 Queen Ave. Enola, Pa. 17025 (717) 732-2222 4 COURT OF COMMON PLEAS, CUMBERLAND COUNTY STATE OF PENNSYLVANIA NCMIC FINANCE CORP. d/b/a NFC FINANCE CORP. PLAINTIFF / COUNTER DEFENDANT, Case No.: 01-6030-Civil Term GARY J. LEIDY DEFENDANT / COUNTER PLAINTIFF. / COUNTERCLAIM COUNT I - MONEY LENT Counter Plaintiff, Gary J. Leidy sues Counter Defendant, NCMIC Finance Corporation, d/b/a/NFC Finance Corporation, and alleges: 1. Jurisdiction and venue are proper. 2. This is an action for money lent that does not exceed $25,000.00 excluding interest, costs and attorneys fees. 3. On the date of 10/2/01 Counter Plaintiff deposited $11,972.67 with Counter Defendant. 4. Counter Plaintiff was the depositor in this transaction. 5. Final notice and demand has been for payment and counter defendant has refused to pay. 6. Counter defendant owes counter plaintiff $11,972.67 that is due with interest since 10/2/01, for money lent by counter plaintiff to counter defendant on this date. 7. Counter plaintiff demands a jury trial. WHEREFORE counter plaintiff demands judgment for damages against counter defendant. 5 COUNT II - BREACH OF CONTRACT Counter Plaintiff, Gary J. Leidy sues Counter Defendant, NCMIC Finance Corp., and alleges: 8. Jurisdiction and venue are proper. 9. This is an action for breach of contract that does not exceed $25,000.00 excluding interest, costs and attorneys fees. 10. On the date of 10/2/01 Counter Plaintiff entered into a written contract with Counter Defendant, in which Counter Plaintiff sold Counter Defendant a promissory note in the amount of $11,972.67. 11. Counter Plaintiff's was the depositor in this transaction. 12. Counter Defendant breached the contract by endorsing the note to itself after it was signed by the Counter Plaintiff and without Counter Plaintiff's knowledge or consent. 13. Counter Defendant owes Counter Plaintiff the value of the note as stated herein. 14. Counter plaintiff demands a jury trial. WHEREFORE Counter Plaintiff demands judgment for damages against Counter Defendant. COUNT III- FRAUD Counter Plaintiff Gary J. Leidy sues Counter Defendant NCMIC Finance Corp. and alleges: 15. Jurisdiction and venue are proper. 16. This is an action for fraud that does not exceed $25,000.00 excluding Interests, costs and attorney fees. At no cost to the plaintiff, plaintiff obtained defendant's money by deceptive business practices. Plaintiff advertised and represented to the defendant that it lent money and would lend money to the defendant upon credit approval. Defendant's application for credit was used to originate the money for the purported credit account and plaintiff lent none of this money to the defendant. Defendant was not aware of the manner in which plaintiff originated 6 the money for the purported credit account and had been deceived into believing that the plaintiff would lend the money in the origination of the account. Defendant's deposit has never been returned and plaintiff has consistently taken measures to conceal the accounting records involving the transaction so as to avoid detection. 17. Counter plaintiff demands a jury trial. DATED this 26 day of November, 2001 Gary'. Leidy J 40 Queen Ave. Enola, Pa. 17025 (717) 732-2222 7 COURT OF COMMON PLEAS, CUMBERLAND COUNTY STATE OF PENNSYLVANIA NCMIC FINANCE CORP. d/b/a NFC FINANCE CORP. PLAINTIFF / COUNTER DEFENDANT, Case No.: 01-6030-Civil Term GARY J. LEIDY DEFENDANT / COUNTER PLAINTIFF. STATE OF PENNSYLVANIA COUNTY OFCUMBERLAND / AFFIDAVIT SS Comes now Gary J. Leidy, the Affiant and solemnly affirm that the statements herein are true and correct in substance and in fact, to wit: 1. On 10/2/01 I deposited $ 11,972.67 with NCMIC Finance Corp., herein called "the organization". 2. I provided the funds for this account with my deposit. 3. The account number was 5455 8912 0000 2906. 4. I paid fees and interest for this service. 5. The organization paid me nothing for my deposit. Signature ~f Affiant Date STATE OF PENNSYLVANIA COUNTY OF CUMBERLAND 8 Subscribed and sworn to before me a notary public this 26 day of November, 2001. Signature of Notary [Is] Notarial Seal Steven B. Woriey, Notary Public East penn,bom TWp. Cumber~nd Co~34 My Commbmion E~plme Dec. 10, M~nl~r, I;~nnmytv~nm ~ ot ~ 9 CERTIFICATE OF SERVICE I, Gary J. Leidy, hereby certify that a copy of the foregoing was sent to Plaintiff, by first class U.S. mail addressed to: Larry S. Eisman, Esq., at:705 Montgomery Ave., 2"d Floor, PO, Box 527, Narberth, PA 19072, on this 26 day of November, 2001. BY: Gary j. leidy 10 COURT OF COMMON PLEAS, CUMBERLAND COUNTY STATE OF PENNSYLVANIA NCMIC FINANCE CORP. d/b/a NFC FINANCE CORP. PLAINTIFF/COUNTER DEFENDANT. VS. Case No.: 01-6030 Civil Term GARY J. LEIDY DEFENDANT/COUNTER PLAINTIFF. / DEFENDANT'S REQUEST FOR A HEARING TO SHOW CAUSE Comes now the defendant and requests a hearing to show cause as to why plaintiff's complaint should not be stricken as being a sham. The complaint fails to allege money was lent to the defendant yet implies that defendant borrowed money from the plaintiff. WHEREFORE defendant requests a hearing to show cause as to why plaintiff's complaint should not be stricken as per the attached verified motion to strike. DATED this 26 day of November, 2001. Gary J. Le~dy 40 queen Ave. Enola, Pa. 17025 (717) 732-2222 COURT OF COMMON PLEAS, CUMBERLAND COUNTY STATE OF PENNSYLVANIA NCMIC FINANCE CORP. d/b/a NFC FINANCE CORP. PLAINTIFF/COUNTER DEFENDANT, VS, Case No.: 01-6030 Civil Term GARY J. LEIDY DEFENDANT/COUNTER PLAINTIFF. / DEFENDANT'S VERIFIED MOTION TO STRIKE COMPLAINT Comes now the defendant and requests an order striking plaintiff's complaint for the reason that the pleading is a sham and is intended solely to misrepresent material facts to the court. The complaint implies that money was lent to the defendant; however, no money was debited from the plaintiff's assets at the time defendant's account was credited or opened. No assets within the control or ownership of the plaintiff were lent to the defendant. The complaint fails to sufficiently allege that money was provided by the plaintiff to the defendant because the source of such money is not identified and the complaint fails to allege that any money was lent. WHEREFORE defendant requests an order striking plaintiffs complaint. DATED this 26 day of November, 2001. Gary~J. Leid~ 40 Queen Ave. Enola, Pa. 17025 (717)732-2222 COURT OF COMMON PLEAS, CUMBERLAND COUNTY STATE OF PENNSYLVANIA NCMIC FINANCE CORP. d/b/a/NFC FINANCE CORP. PLAINTIFF/COUNTER DEFENDANT, VS. Case No.: 01-6030 Civil Term GARY J. LEIDY DEFENDANT/COUNTER PLAINTIFF. / AFFIDAVIT IN SUPPORT OF MOTION TO STRIKE STATE OF PENNSYLVANIA ) ss COUNTY OF CUMBERLAND ) Comes now Gary J, Leidy and does solemnly affirm that the statements herein are true and correct in substance and in fact, to wit: 1. Plaintiff's complaint fails to allege that money was lent to the defendant. 2. My verified motion to strike the complaint is made in good faith and not intended for purposes of delay, harassment or to unnecessarily increase the costs of litigation. Signature/o{` Affiat{t STATE OF PENNSYLVANIA COUNTY OF CUMBERLAND SS Subscribed and sworn to before me a notary public this 26 day of November, 2001. Signature of Notary Notarial Seal Staven B. Worley, Notary Public East PennsberoTwp., Cumberland County My Commission Expires Dec. 10, 2004 Member, Penn~yNania Association of Notaries [Is] COURT OF COMMON PLEAS, CUMBERLAND COUNTUY STATE OF PENNSYLVANIA NCMIC FINANCE CORP. d/b/a NFC FINANCE CORP. PLAINTIFF/COUNTER DEFENDANT, Case No.: 01-6030-Civil Term V. GARY J. LEIDY DEFENDANT/COUNTER PLAINTIFF. / DEFENDANT'S REQUESTS FOR ADMISSION TO THE PLAINTIFF NOTICE IS HEREBY GIVEN to the plaintiff that each of the following requests for admission must either be admitted or denied within the time and in the manner required by the rules, to wit: 1. Plaintiffs complaint fails to allege money was lent to the defendant. 2. Plaintiff did not lend any money to the defendant. 3. Plaintiff cannot identify the account from which any money was lent to the defendant. 4. Plaintiff cannot identify any assets that it may have risked in the account that is the subject of this proceeding. DATED this 26 day of November, 2001. G~ry/~. Leidy~ 40 Queen Ave. Enola, Pa. 17025 (717) 732-2222 CERTIFICATE OF SERVICE I, Gary J. Leidy, hereby certify that a copy of the foregoing was mailed to plaintiffs attorney: Larry S. Eisman, Esq., by first class U.S. mail to: 705 Montgomery Ave., 2nd floor, PO. Box 527, Narberth, PA 19072, on this 26 day of November, 2001. By: Gary J. Leidy 'March 20, 2002 lse\reply-nm Larry S. Eisman, Esquire ID #19738 705 Montgomery Ave., 2nd Floor Narberth, PA 19072 610 664 1999 Attorney for Plaintiff NCMIC Finance Corporation, Finance Corporation Gary J. Leidy dba NFC Court of Common Pleas Cumberland County. 01 6030 Civil Term Reply to New Matter & Answer to Counterclaim Affirmative Defenses Payment Denied. To the contrary, defendant has not "deposited" any sums with plaintiff. Defendant is not entitled to a return on this non-existent deposit. Complaint Fails to State A Cause of Action Denied. Plaintiff extended credit to defendant. Defendant took advantage of the extension of credit. Defendant failed to repay the balance due. Plaintiff has stated a cause of action. Failure of Consideration Denied. The allegation is irrelevant and, in fact, vendors doing business with defendant have been paid for those charges made by defendant. Plaintiff has not been paid by defendant. Accord & Satisfaction Denied. Defendant did not make a payment in March 2001. Even if a payment was made, which it was not, and strict proof of such payment is demanded, it was not accepted as full payment. Breach of Contract Denied. Defendant never provided a deposit hence he is not entitled to a return of the deposit. Offset Denied. Defendant is not entitled to an offset for any reason other than payments received by plaintiff. All payments have been credited. Wherefore plaintiff prays this Honorable Court to enter a judgment against defendant in the amount prayed for in the Complaint. Answer to Counterclaim 1. Admitted. 2. Denied. This is an action for an extension of credit, which credit was utilized by defendant for his personal benefit. 3. Denied. Defendant never made a deposit with plaintiff. Plaintiff is not a depository and does not have any depository accounts. 4. Denied. Defendant never made a deposit with plaintiff. Plaintiff is not a depository and does not have any depository accounts. 5. Admitted in part. Denied in part. It is admitted that defendant has made demand for payment. It is admitted that plaintiff has refused to make a payment to defendant. It is denied that defendant is entitled to any such payment from plaintiff. 6. Denied. Defendant is not entitled to any payment from plaintiff. 7. Denied. This case is an Arbitration matter and a request for a jury trial is contra the Pennsylvania Rules of Civil Procedure. Wherefore plaintiff prays this Honorable Court to enter a judgment against defendant in the amount prayed for in the Complaint. 8. Admitted. 9. Admitted. 10. Denied. Plaintiff never sold a Promissory Note to defendant, nor did defendant purchase such a note from plaintiff. 11. Denied. Plaintiff is not a depository. Defendant does not have a deposit account with defendant. 12. Denied. The "note" defendant refers to does not exist, there was no endorsement and no breach of contract. 13. Denied. The "note" defendant refers to does not exist, there was no endorsement and no breach of contract. 14. Denied. This case is an Arbitration matter and a request for a jury trial is contra the Pennsylvania Rules of Civil Procedure. Wherefore plaintiff prays this Honorable Court to enter a judgment against defendant in the amount prayed for in the Complaint. 15. Admitted. 16. Admitted in part. Denied in part. It is admitted that this action does not exceed $25,000.00. It is denied that plaintiff committed fraud. The only fraud in this matter was committed by defendant. Plaintiff denies it is or ever was involved in a deceptive business practice. Defendant never deposited any money with plaintiff. Defendant is very confused. 17. Denied. This case is an Arbitration matter and a request for a jury trial is contra the Pennsylvania Rules of Civil Procedure. Wherefore plaintiff prays this Honorable Court to enter a judgment against defendant in the amount prayed for in the Complaint. Respectfully submitted, Larry S. Eisman, Esquire Attorney for Plaintiff 'March 20, 2002 LSE:bf lse\certserv.frm Larry S. Eisman, Esquire #19728 PO Box 527 Narberth, PA 19072 610 664 1999 Attorney for Plaintiff NCMIC Finance Corporation, dba NFC : Finance Corporation : Gary J. Leidy Court of Common Pleas Cumberland County 01 6030 Civil Term Certificate of Servic. I did, on March 20, 2002 send a true and correct copy of Plaintiff,s REply to New Matter & Answer to Counterclaim as follows: Gary Leidy 40 Queen Ave. Enola, PA 17025 The Statements made herein are made subject to the penalties of 4904 relating to unsworn falsification to authorities. Larry S. Eisman Attorney for Plaintiff 18 Pa. C.S.