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HomeMy WebLinkAbout03-5925CITIZENS SAVINGS BANK, Plaintiff VS. MELISSA K. BERNARD, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NOTICE YOU HAVE BEEN SUED/N 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 PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17103 717-249-3166/800-990-9108 CITIZENS SAVINGS BANK, Plaintiff MELISSA K. BERNARD, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. COMPLAINT Citizens Savings Bank, by its attorneys, Buchanan Ingersoll Professional Corporation, hereby files this Complaint against Defendant, Melissa K. Bernard, and states as follows: THE PARTIES 1. Plaintiff, Citizens Savings Bank ("Citizens Bank") is a bank organized and existing nnder the laws of the United States with its principal place of business at One Citizens Drive, Riverside, Rhode Island 02915. 2. Defendant, Melissa K. Bernard ("Defendant") is an adult individual residing at 415 Brookville Court, Mechanicsburg, Pennsylvania 17050. BACKGROUND 3. At all times relevant hereto, Defendant was employed as a branch manager of Mellon Bank, located at 255 Cumberland Parkway, Mechanicsburg, PA 17055. A. Promissory Note 4. On or about May 3, 2001, Defendant obtained a personal loan from Mellon Bank in the principal amount orS11,000.00. To secure her obligation to repay the loan, Defendant executed a Promissory Note (the "Note"), a copy of which is attached hereto as Exhibit "A" and incorporated herein. 5. Mellon Bank assigned the Note to Citizens Bank by virtue of a Purchase Agreement dated whereby Citizens Bank became the successor in interest to Mellon Bank. By virtue of the assignment, all rights of Mellon Bank under the Note inured to the benefit of Citizens Bank. To avoid confusion, Mellon Bank will be referred to as Citizens Bank hereinafter. 6. Under the terms of the Note, Defendant agreed, inter alia, to make sixty monthly payments to Citizens Bank of $252.93 each, beginning on July 2, 2001, and continuing each month thereafter for fifty-nine (59) consecutive months or until such time her obligation was paid in full. 7. Defendant also agreed to pay interest to Citizens Bank on the loan at the annual percentage rate of 12.99%, as set forth in greater detail in the Note. 8. Defendant made a total of eighteen (18) payments of $252.93 to Citizens Bank on the loan from approximately July 2001 through January 3, 2003. 9. On January 3, 2003, however, Defendant failed to make her regular monthly payment of $252.93 to Citizens Bank, and has failed to make any further monthly payments since January 3, 2003. 10. Defendant is in default under the terms of the Note. 11. Under the terms of the Note, Citizens Bank has the right to declare all amounts due and owing upon the failure to make any payment when due or any breach of the Note. 12. Under the terms of the Note, Defendant agreed to pay Citizens Bank reasonable attorney's fees and costs to recover all amounts due under the Note. 13. As of November 2003, Defendant owes Citizens Bank $7,720.14 plus fees, costs, and attorney's fees under the Note. B. Checking Account 14. On or about July 22, 1996, Defendant opened checking account no. 6100889963 with Citizens Bank. 15. Defendant agreed to the terms and conditions of Citizens Bank with regard to the checking account referenced above, as more fully set forth on the Overdraft Line of Credit Agreement & Truth In Lending Disclosure ("Credit Agreement") provided to the Defendant, a copy of which is attached hereto as Exhibit "B" and incorporated herein. 16. Under the terms governing the use of the checking account, Citizens Bank extended a line of credit to Defendant in the form of"overdraft protection" in the event Defendant withdrew more funds than she had in the checking account at any given point in time to cover checks written on her account. 17. Defendant agreed to repay all monies paid by Citizens on her behalf in the form of overdraft protection with regard to her checking account, including all fees and charges as more fully set forth in the Credit Agreement. 18. Citizens paid $990.87 with regard to checking account no. 6100889963 to Defendant in the form of overdraft protection pursuant to the Credit Agreement. 19. Despite repeated demands, Defendant has failed to pay Citizens Bank the total sum of $990.87 paid on her behalf by Citizens Bank to date. C. Business Visa 20, On or about July 18, 2002, Defendant applied for a employee corporate visa credit card with Citizens Bank (the "business visa credit card"). 21. Citizens Bank approved her application on the same date and issued Defendant a business visa credit card for use with regard to business related expenses incident to her position as branch manager. 22. Defendant agreed to the terms and conditions set forth on the Visa Commercial Card Cardholder Agreement ("Cardholder Agreement"), a copy of which is attached hereto as Exhibit "C". 23. Under the Cardholder Agreement, Defendant agreed to pay the amount due each month as set forth on statements of account reflecting charges made by Defendant to the credit card. 24. Beginning in August 2003, Defendant made charges to the bnsiness visa credit card of approximately $2,744.28 and was reimbursed by Citizens Bank the amount of said charges. 25. Defendant, however, did not apply the monies paid by Citizens Bank to pay the amount due to visa, and instead, upon information and belief, has retained said monies for her own personal use and enjoyment. 26. Defendant has failed to pay the amounts due under her business visa credit card to date. 4 D. Demand for Payment 27. Despite demand, Defendant has failed and refused to repay all amounts owed. 28. As of November 2003, Defendant owes $2,915.52 for charges to her business visa credit card, including late fees and other charges as provided for under the Agreement. COUNT 1 - BREACH OF CONTRACT 29. Citizens Bank incorporates paragraph 1 through 28 as if fully set forth herein. 30. By refusing to pay $7,720.14 due under the terms of the Note, Defendant is in default and breach of the Note. 31. As a direct and proximate result of her breach, Citizens Bank has suffered damages in the amount of $7,720.14 plus interest, fees, costs, and attomey's fees as provided for under the terms of the Note. 32. By refusing to pay $990.87 due under the terms governing Plaintiff's checking account, Defendant has breached the terms and conditions of the Credit Agreement with Citizens Bank. 33. As a direct and proximate result of her breach, Citizens Bank has suffered damages in the amount of $990.87 plus interest, fees, costs, and attorney's fees as provided for under the terms of the Credit Agreement. 34. By refusing to pay $2,915.52 for charges made by Defendant to her business visa credit card, Defendant has breached the terms of the Cardholder Agreement. 35. As a direct and proximate result of her breach, Citizens Bank has suffered damages in the amount of $2,915.52 plus interest, fees, costs, and attorney's fees as provided for under the terms of the Cardholder Agreement. WHEREFORE, Plaintiff Citizens Savings Bank respectfully requests that this Court enter judgment in its favor and against Defendant Melissa Bernard in an amount which is less than the jurisdictional limits for compulsory arbitration, together with attorney's fees, interest, costs, and such other relief as this Court deems appropriate. COUNT II - UNJUST ENRICItEMENT 36. Citizens Bank incorporates paragraph 1 through 35 as if fully set forth herein. 37. Citizens Bank conferred a material benefit upon Defendant by performing services and advancing funds to Defendant for a personal loan, checking account overdraft protection, and a business visa credit card. 38. Defendant accepted funds from Citizens for the personal loan, checking account overdraft protection, and a business visa credit card. 39. Citizens Bank had a reasonable expectation that Defendant would repay the funds advanced to Defendant as referenced above. 40. The reasonable value of the funds and services advanced by Citizens Bank to Defendant totals $11,626.53 to date. 41. Defendant has refused to repay Citizens Bank $11,626.53 and has therefore, been unjustly enriched. WHEREFORE, Plaintiff Citizens Savings Bank respectfully requests that this Court enter judgment in its favor and against Defendant Melissa Bernard in an amount which is less than the 6 jurisdictional limits for compulsory arbitration, together with interest, costs, and such other relief as this Court deems appropriate. Respectfully Submitted, BUCHANAN INGERSOLL PROFESSIONAL CORPORATION I.D. No. 80035 One South Market Square 213 Market Street, 3rd Floor Harrisburg, PA 17101 (717) 237-4800 Attorneys for Plaintiff Citizens Savings Bank DATED: November 7, 2003 7 VERIFICATION I, Ryan Deady, as a duly authorized corporate representative of Citizens Automobile Finance, Inc., hereby verify and state that the facts set forth in the foregoing Complaint are true and correct to the best of my information, knowledge and beliefi I understand that false statements herein are made subject to penalties of 18 Pa. C.S.A. § 4904 relating to unswom verification to authorities. Deady Promissory Note ~) Mellon Fldlrll Trutll in lending ZSZ.Z7 p#i~,n0r l ~ m~t . all pa~meflts a.,~ ~hedU Terms of Note Ip.,mi.et~,p.yvc,p$ 1~000.00 . 'J'hisamcmmiscalludthe"Prlncipal,S. mc~unt", la~n~lopayyouthepr~paidflnaaoecha~eahm~ta~, Addklonnl Term Events of l)efaulk mquJu~ I may obtain flood insurance, if required, from anyone I want that Is at~eptable tit you, N~tl~ tg 'YOU are beta{ milked to gUaranlee Ihk debt. Think careMly before you do. If Ihe Mreowur dne~n't l~ty Ihe del,t, yi~tl will have I., B~ sure you olin afford th}~ amount, CO~St~IMATION OF I~E TRANSACTION, OVERDRAFT LINE L .~REDIT ,~E;REEMENT & TRUTH IN LE ~NG DISCLOSURE In tl~is A~eem~L "C~ti~ns", "w .......... e, u~ ~nd our mcan the C~z~ns co~cfion with ~ valid bil~ng dispute. 8~n~'~wh~rc your Choking Accel is ori~i~t~d ~e Ci~zens e) Res~h ~e - CBCT. CBMA, C~NH and CBRI cu~f6~c~ ~ank at~re2 Citize~ Bmk of Co~I "CB~"; Cities B~ $20/hout (~0 mi~mum) for ~y ~c~t r~ch or ~onc[li=ion of Mas~achu~ "CBMA"; Ci0~ns B~ New Ham~hire 'CBNH'; =nd unless tequ~ in conn~ion wi~ a valid billi~ ~ispu~. ~zcn~ gank of Rhode lslan~ "~RI"). "You" =~ "you~ ~n ~ 0 Coll~fion ~=. You will pay any re.unable c~ll~on ~ p~on who h=~ appli~ for and/or acccp~ =n Ov~a~ Line of ~di~ by us. including co~rt cos~ and a~omeys' fees, ir we ~ req~ A~ount ("Overdraft L n~ ) with us or who s au~on~ ~ use ~e ~11~ ~y ~ms due under this Agar. to th= *x~t p~i~ ~king Ac~um (as ~fin~d ~Iow). You will h=~= a~d md ~ law. You may be ~fi~ to m~le a~ys' f~ if you gev~l to be ~unO by, this Ag=emit from ~e tim time you use your Ove~ any ~ion brou~t by 4. Fiance ~g~. You ag~ to pay a ~odic Finmcc Ch~ o~ your ~e t=rm 'person" means any indivi0ual, pa~hip, c~ota~on, Ovgdm~ Li~ wh~cv~'~e mon~iy s~/em~t for ~ cu~ent fidu~a~ (i.e. es~te or custoaian), c~p~ve, ~so~atio~ = o~ ~W. "Choking ~cc~t" mea~ ~e Citi~ ~kin; a~ount li~ ~ ~e ~ge will be fi~d by mul~pl~n& ~e A~e~e D~y B~ ut your Overdr~ Line. T~s may be a personal or bueiness ~e~g accent (as Ov~r~t L~ W ~e b~ly P~o~c ~ ~d ~e~ m~plying ~c result apptlcable), ~e~iag wi~ in.rest a~co~nt, or simi~ ~t ~ ~e num~ of d~ys in ~ bil~ng ~cl~ To g~ ~e A~c D~Iy "Fees" m~s ~he fees which ~e ~scribed in S~on 3 o{ this A~t. B~, we ~e ~e be~ing b~ ~ch day (whi~ does not ~clude any unp~d Fi~ C~ges ~ Fccs), add any new Over.fi Li~ 1. Overdnfl Li~ of C~ Account Tra~. y~ ~ ~ your Tr~nsa~o~ ~ of th~ d~m ~ ~o~ ~sact ~ ~d sub~l ~y Overdra~ Linc. up to your a.sit.hie ~e~i: ~ mit. to ~ver ~ccks and o~et ~nd cre~. ~is glvcs us ~ ~ily b~l~. ~ we ad~ ~1 d~7 your ChccK~n~ Account {"~er~ra~ LJ~e T~aactions"). - billing ~c~c. t ~ g~v~a us the A~e~ Dad~ &~nc~ t~ your ~n~ Or.draft L~n= T~nsactio~ ~ subj~t m ~[nanc~ Ch~ from the ~ Ct~t Li~t- You c~n u~ your Ov~ft Line up :o the ~edlt H~: we d~e of ~e t~s~tion until the d~ ~ arc p~d. ~de ~vaH~b~e m you. Your ~dic limit ~p~rs in the Ov~d~R Line of ~{t Summ~ sccc~o~ oF your ~n~ly Ch~i~ A~ount s~( ~c ~;]y P~iodic Ra~ ~d ~c co~s~n~& AHNU~ C monthly smt~m~t"). You a~ not m ~c~d your ~dit li~t without ~TE use~ to comput~ ~e ~NAN~ ~ARGE ~e shown in ~e approval our prior ~pptoval, Wc have ~e ri~t :o prohibit ~ f~m your ~e~er from us, which iS enclo~ wi~ this A~m~ ~is ~pro~[ [c~ Ov~d~ ~nc ~at will pat your Ove~z~ ~ne b~ over yo~r credit ~s mco~o~d by ref~ce into, a~d ~alI be c~si~ a p~ of, limk, If wc do ~)low such ad~nc~, you ~ ~ pay os ~e amo~m ov~ A~eement 7our credit limit ~d ~ ~so~ated fees or ~c ~Gxo ba[~ in S. Mo~ly S~t~. We will p~ovi~ you a roundly s~m~t at Ov~dra~ Line imme~ately, upon our r~u~t. W~ ~ ~(om a~y ch~ or ~nd of ~ch billing ~de du~ whi~ ~ur Ove~R Linc h~ a o:h~ debit i~m that wouId put your Over~ Line b~ ov~ y~r ~ea~ than $1. Your Overdraft Line ~tivi~ will ~ i~ ~ a c~i~ [im/~ You a~e ~o pay ~y chic for such ~ed i~ su~ ~s ponlo~ of your monthly s~m~t. You a~e ~: ~he m~thly s~leme~t i~uffic;~; fund char$~s, as shown ~ ~e Ba~ing F~ g~u~e fo; your will be ~sid~ ~n~ct uuless you no:i~ us of ~y ~n wi~i~ 60 ~ays ~e~ng Account, We may cM~ge you; cr~{; li~; at ~ time. o; you may apply tbr a c~ in your ~it li~t. o~ thc mon~y s~lement date. · Fees. Th= following {~s appiy ~ your Ov~m{~ LinC; 6. Paymeo~ ;ro~. You ~ee to pay us ~ Minimum ~ym~ ~ by · e Paym~t Doe Da~ shown on your money sm~menL ~ Payme~ a) Annual F~ - You will pay ~n ~u~ f~ o[ $20, You m~t p~ ~ Du~ Date is ~ ~y$ a~ ;he Starcraft Clo~ng D~te. The Minimum annual fee whether or not yo~ us~ )'~r ~a~ Line. ~ ~nu~ ~ym~[ Due is ~ amen[ ~uai to a) ~e ~ ~t Bal~ ir fcc ~11 bc cha~ to your Che~iug Accost on ~e Ov~ Line's $20, w b) 2% of ~e Cun~t B~lm~ or $20, whi~ev~ is ~ca~, plus ~y first statement ~t~ followin3 the Ov~d~ ~e's o~ning, ~ on ~e ~mounc p~t d~. ~ Mi~mum Pay~t Due will be auto~tically Over~afi Line's aanN~a~ a-t- --*~ · ~ .... ~, s~ :n~n~. I ne ~n~ f~ deduced ~ y~ur CheWing Accoun~ on thc ~y~ent O~e D~ I~ is waived for C~tiz~s Circle ~ Checking c~. ~s waiv~ ~ ~1 sufaci~t ~n~ in me Chc~ing ~co~nt to ~ke ~e pay~t do~ not apply to Ovcrd~ Lines li~ to b~s c~ni ~he ~ym~[ Due Date, [he M[nlmum Paymcnt Due wiJl be ~uc~d on b) a~ fie- You w~ll pay a iatc fcc when your M mmum Payment Du~ there ~e funds av~l[bk in ~c Choking Accent to p~y lc~ t~n ~e staemem The late fee =moun~ ~e ~ follows: =~tomadca]t~ d~u~ ~d appli~ ~ ~e O~er~ ~ne ~ a p~ CBCT, ~NH. ~n~ CBRI custom,rs: You will pay ~ late fee paym~t, On subscqu~t d=~s, if t~e are su~dent fun~ iu t~ of Account ~ pay less than or all of the ~m[tni~g Minimum Pay~t CBMA ~stomen: You ~11 pay ~ late f~ ~aal m t~ ~r~t that cmoum w~[[ b~ au~om~t~c~ly ~ucte~ a~ applied to the (t 0%} of the Cur~nt ~alance ow~ or $10, w~ch~ is CBMA ~stom~s ~ve ~f~ (l 5) ~ys from ~r ~ym~t required to ~e thc Minimum Payment Due al~g with ~y applicable c) Returned Check Fee - You wil] p~y a ~u~d ~ f~ it'a c~e~ F~s. ~ior m t~c P~nt D~ Dam, yo~ m~ m~c a paym~t by · at you hav~ s~t lo us in p~yment of your O~d~ ~ne is rc~ comacting ~ Pho~B~ at 1400-922-9999, by ~n& ~ ps~m~t yo~ ~z~ Ba~ bran~, or by ~ln~ a ~ym~ ~ ~s Ba~, P.O. unpaid fo: any reason, Th~ raumed ch~k t~ amo~ ~e ~ follo~: ~o~ ~2, ~vidence. RI ~901. If a pays[ ~ [h~ ~ ~al to CBCT, CB~, an~ CB~ :ostom~: You wi~ pay ~ ~zumtd Minimum Payment Due ii ~s~d lo your Ov~ah ~ne ~ior to ~e Paym~t Due Da~ ~e M~mum Psym~[ Doe wiU not be auto~6c~y GB~A customers: You will p~y a ~:um~ ch~k fee of $2~3 d~ucted ~om your ~=~ing A~o~t on the ~y~t ~ue Date tot that for Or.daft Lines.E~ed to a p~o~l ch~ing accounC Yo~ billing ~cle. Howev~, you will still bc reqoi~ lo pay ~e will ~y a rmumcd ~ [~ of $7.~ for Ov~r~ ~nes link~ ~y~t D~e in the ~t billing cyc~ it ~em is a b~e on your monthly st~omonL Each payment r~eiv~ is appli~ fiat to your ~estcd. You wlil pay $5 for ~ copy of ~ ch~ ~ues:e~. You whcihct p~/ous[y bfll~ or ma~ ~ i~u~O ~fing the ~I ~lling ~gr~men: if y~ ~u~t copi~s of mo~ ~ on~ (1) s~r~t or t ' owed on your O~:r~aft Line will ~e cr~md to ~u: Ch~ing A~unt. hr~ (~) ~e~s, Copy fccs am wal*cd if your requ~t s ~a~ J~ CITIZENS BANK VISA ~ COMMERCIAL CARD CARDHOLDER AGREEMENT Your Visa® charge card is either a travel and entertainment card, a corporate purchasing card, or a combination of the two (collectively, "Commercial Card"). Read this Agreement thoroughly. This Agreement, as modified fi-om time to time, governs your use of the Commercial Card and the account ("Cardholder Account") issued in connection with the Commercial Card. L DEFINITIONS. As you read this Agreement, remember that the following words have the following meanings: "Charges" refers to all amounts charged to your Cardholder Account including, without limitation, Purchases, Cash Advances, any Wansaction in which you have evidenced an intention to make a Purchase or obtain a Cash Advance, charges and fees, and any other monetary obligations associated with the Cardholder Account. (b) "CompanF" refers to your employer, the business entity that has requested us to issue the Commercial Card to you. (c) "Cornt~anv Account" means the aceotmt we have established in the Company's name and in connection with which we have issued your Commercial Card and Cardholder Account. (d) "We.' "our" or "u_.{s" refers to Citizens Bank of Rhode Island, the issuer of the Commercial Card, or its assigns. , (e) "You" or "~our' refers to the person named on the Commercial Card. 2. ACCEPTING THE AGREEMENT. If you agree to be bound by this Agreement, you should sign the Commercial Card as soon as you receive it. If you do not wish to be bound by this Agreement, do not use the Commercial Card, cut the Commercial Card in haig and return the pieces to your Program Administrator, Your use of the Commemial Card will also indicate your accepm.nce of the Commercial Card and the terms of this Agreement. Any use of the Account number without the Card, however initiated, shall be deemed to be use of the Card. 3. USE OF THE COMMERCIAL CARD, You may use the Commercial Card to make purchases of goods and services fi-om participating Visa merchants ("P~rchases"). If the Company requests, you may be issued a Personal Identification Number ("PIN") to ob~ cash advances ("Cash Advances") by present ng the Commercial Card at participating Visa member off)els or by use of automated teller machines (".ATMs7') or other electronic terminals that accept the CommerCial Card for such purposes. If you are given a PIN to obtain Cash Advances, you agree not to disclose yOUr PIN to others. You also agree that we may disable this Cash Advance feature or terminate or suspend your use of ATMs or other electronic terminals without cause or prior notice. We are not liable for the refusal of any merchant to accept or honor the Commercial Card for any reason, including the inability to oblain authorization for the Purchase, or for any failure to complete a transaction at an ATM for any reason. We reserve the fight to deny authorization of any Charge. 4. BUSINESS PURPOSE: ILLEGAL TP.~4NSACTION~. You agree to use the Commercial Card, whether to obtain Purchases or Cash Advances, for the authorized business purposes of the Company only and not for your personal, family or household purposes. You also agree to use the Commercial Card only in accordance with the Company's policies and procedures, including, but not limited to, any procedures relating to the submission of expense reports. You may not use your Commercial Card or the Cardholder Account as payment for any illegal purchase (including, but not limited to, online gambling tranaactions). 5, LL4BILITE If the Company has asked us to bill you directly for the use of your Commercial Card and your Cardholder Account, you understand and agree that you will be personally liable th'us for any Charges resulting from your use of the Commemial Card or your Cardholder Account, whether or not the Company has assumed some or all of the liability for such Charges. To the extent that the Company has assumed any liability for such Charges, you and thc Company will be jointly liable for such Charges. You may consult the Company's Commercial Card Program Administrator to find out whether the Company has asked us to bill you directly, and the extent of liability assumed by the Company. 6.. UNAUTHORIZED USE; LOST OR STOLEN COMMERCIAL CARD. No other person is permitted to use your Commercial Card or Cardholder Account for Charges, for identification, or for any other reason. You agree to notify us immediately upon learning of the loss, theft or possible unauthorized use by a third party of the Commercial Card. You may notify' us by calling 1-800-556-5678. You also agree to notify your Program Administrator as soon as possible after learning of the loss, theft or possible unauthorized use of your Commercial Card. If you are personally liable for the use of your Commercial Card and your Cardholder Account (see Section 5 of this Agreement, above), you will not be liable for any unauthorized use that occurs after you notify us of the luss or theft of your Commercial Card or the possible unauthorized use of your Commercial Card and/or Cardbolder Account. In any case, your liability for unauthorized use o~'the Card by a third party will not exceed the lesser of $50.00 or the amount of money, property, or services obtained by such unauthorized use of the Commercial Card before we are notified. Although such use of the Commercial Card and the Cardholder Account is prohibited under this Agreement, you will be liable for your use of the Commercial Card or the Cardholder Account for personal, family or household purposes. In addition, if you permit anyone to use the Commercial Card or to otherwise access the Cardholder Account, such use of the Commercial Card or access to the Cardholder Account will be considered authorized use. 7. CREDIT LINE; CASH ADVANCE LIMIT; COMPANY CREDIT LIMIT. The Company will establish a credit line for your Cardholder Account ("Credit Line"). Either we or the Company may, at any time, change your Credit Line. You agree that you will not use your Commercial Card or yonr Cardholder Account in any way that would cause the total outstanding amount of Charges on your Cardholder Account to exceed your Credit Line. We are not obligated to accept any Charges on your Cardholder Account if the total outstanding Charges on your Cardholder Accoum would exceed your Credit Line; but, if we do, and if you are personally liable fur your use of the Commercial Card and the Cardholder Account {see Section 5 of this Agreement, above), you agree to repay all such Cha~ges in accordance with the terms of this Agreement. If you are permitted to obtain Cash Advances, the Company may establish a limit on the amount of Cash Advances that you may obtain ander the Account ("Cash Advance Limit"). We or the Company may, at any time, change your Cash Advance Limit. You agree that you will not use youg Commercial Card or your Cardholder Account to obtain Cash Advances that would cause the total outstanding amount of Cash Advances to exceed the Cash Advance Limit. If you exceed the Cash Advance Limit, we may, without notice, suspend your privilege to use your Cardholder Account_ We are not, under any circumstances, obligated to honor a request for Cash Advances if the Cash Advance Limit has been exceeded; but, if we do, and if you are personally liable for your use of the Commercial Card and the Cardholder Account (see Section 5 of this Agreement, above), you agree to repay all such Cash Advances, plus other applicable Charges, in accordance with the terms of this Agreement. Your C~sh Advance Limit is a portion of your total Credit Line and is only available to the extent that you have an amount available under your Credit Line. We will establish and notify the Company of a credit limit for the Company Account ("Company Credit Limit"). We also reserve the right to deny authorization of any Charge on your Cardholder Account if the Company Credit Limit is or would be exceeded even if the Charge is within your Credit Line or your Cash Advance Limit. 8. STATEMENT5; If you are responsible for the payment of all or a portion of your Cardholder Account (see Section 5 of this Agreement, above), we will send you a statement ("Statement") on a periodic basis showing the amount you owe. The Statement will show separately the Purchases and Cash Advances, if any, that have been posted to your Cardholder Account since your last Statement, plus all other Charges posted to your Cardholdef Account during the billing period. If the Company is responsible for payment of ail Charges on your Cardholder Account, you may receive a statement of activity which reflects the Charges on your Cardholder Account but is for information purposes only and not a bill for payment. You agree that the Statement or statement of activity will be considered correct unless you notify us of any error within 14 days after we send you the Statement or statement of activity. PAYMENT. lfyou are responsible for the payment of all o[ a portion of your Cardholder Account (see Section 5 of this Agreement, above), you agree as follows: (a) Upon receipt of the Statement, you promise to pay us the "Amount Due" shown on your Statement. The .';Amount Due" will be the full amount necessary to pay.the entire balance of your Cardholder Account, including without limitation the following amounts: (i) the total of all Purchases and. Cash Advances charged to your Cardholder Account during the prior hilling cycle; (ii) the fees and other charges you have agreed to pay (see Section 11, below); and (iii) all other Charges posted to your Cardholder Account. We will apply each payment you make in any manner we select in our sole discretion, subject to t~e requirements of applicable law. (b) In addition to the payment obligations described in subsection 9(a), you agree to pay us immediately, upon our request, the full amount of any outstanding balance exceeding your Credit Line or Cash Advance Limit. (c) You agree to make all payments described in subsections 9(a) and 9(b) of this Agreement on the dates such payments are due, whether or not the Company has reimbursed you for any or ail of the Pumhases, Cash Advances, or Charges identified on your Statement. (d) All written communications concerning disputed amounts, including any check or other payment instrument that you send us (i) in an amount less than the full amount due marked "Paid in Full," (ii) tendered with other conditions or limitations, or (iii} otherwise tendered as full satisfaction of a disputed amount, must be sent to us at the following address: Citizens Commercial Card, 1 Citizens Drive, Riverside, RI 02915, Attention: Commercial Card Operations Special Services. I0. CREDITS. We will refund any unused credit balances in excess of $1 upon written request. However, credit balances will not increase the mount of credit available to you from your account. I1. FEES AND CHARGES. If you are responsible for the payment of all or a portion of your Cardholder Account (see Section 5 of this Agreement, above), you agree to pay us the following fees and charges: (a) If the Company has agreed that we may assess an annual fee, you agree to pay us the amount of such annual fee each year. Contact your Program Administrator to find out the amount of the annual fee, if any, that we will assess to your Cardholder Account. The annual fee, if any, will appear on the Statement we send you for the billing cycle in which we assess the fee. (b) If you fail to make any required payment by the payment due date, you agree to pay us a late fee equal to thre~ percent (3%) of the outstanding balance of your Cardholder Account, subject to a minimum amount of $30.00. (c) Each time you obtain a Cash Advance (if permitted), you agree to pay us a Cash Advance fee equal to four percent (4%) of the amount of the Cash Advance, subject to a minimum amount of $4.00. 12. CANCELIM TION OR SUSPENSION. Regardless of whether an event of default has occurred, we may cancel or suspend your privilege to use the Cardholder Account, terminate your Cardholder Account or lower your Credit Line at any time for any reason, and we will give you only such notice as is required by law. We may also terminate or suspend your use of ATMs or other electronic terminals without cause or prior notice. If your Cardholder Account is suspended, it may be returned to active status with or without notice to you and at our sole discretion. In addition, the Company may request that we cancel your Cardholder Account at any time. Your Cardholder Account will be cancelled automatically if the Company Account is cancelled or terminated. After cancellation or suspension of your Cardholder Account, you remain responsible for amounts owed on the Cardholder Account in accordance with the terms of this Agreement. 13. TERMINATION AND ACCEI~ERATION~ We may, at our sole option, terminate your Cardholder Account and demand that the total balance of your Cardholder Account be paid in full under the following cii'cumstances: ..... (a) you fail to comply with the terms of this Agreement; (b) you become insolvent or bankrupt or die; (c) you exceed ~;he maximum Credit Line o[ Cash Advance Limit on your Cardholder Acc0t~at; (d) you or the Company use a check or instrument for payment which is dishonored; (e) payment for Charges is past due; (0 we have evidence or a reasonable belief that an improper use of your Commemial Eard or Cardholder Account has been or may be made; (g) we have evidence or a reasonable belief that the Company is unable or unwilling to meet all of its obligations, including, but not limited to, those relating to the Company Account; or (h) the Company Credit Limit has been exceeded. We may also enforce *.ny of our other legal fights, including the right to charge court costs and reasonable attorney's fees as permitted by law. Late payment fees will continue to accrue on all Charges which are past due until such Charges have been paid in full 14. RETURN OR SURRENDER OF COMMERCIAL CARD. If we terminate your Cardholder Account, you must destroy your Commercial Card or return it to your Program Administrator. If the Company asks you to surrender your Commercial Card to it for any reason, you must do so. If a merchant that accepts the Commercial Card asks you to surrender your expired or terminated Commercial Card, you must do so. You may not use the Commercial Card after it has expired, after we have terminated or suspended your Cardholder Account, or after your employment with the Company has ended, but, if you do, you will be liable for any such 15. FOREIGN EXCHANGE/CURRENCY CONVERSION. If you use your Commercial Card for transactions in a currency other than U.S. dollars, Visa will convert the charge into a U.S. dollar amount. Visa will use its currency conversion procedure, which is disclosed to institutions that issue Visa cards. Currently the currency conversion rate used by Visa to determine the transaction amount in U.S., dollars for such transactions is generally either a government mandated rate or a wholesale rate determined by Visa for the processing cycle in which 'the transaction is processed, increased by an adjuslment factor established from time to time by Visa. The currency conversion rate used by Visa on the processing date may differ from the rate that would have been used on the purchase date or Statement posting date. 16. DISPUTES. If you have any questions, problems, discrepancies, or disputes concerning Charges on your Cardholder Account, you should notify your Program Administrator. Your Program Administrator must contact us within sixty (60) days from the Closing Date o£the Statement on which such Charges first appear. After your Program Administrator contacts us, we will take all reasonable and appropriate steps to provide the information you request or to resolve your dispute. If you are responsible for the payment of all or a portion of your Cardholder Account (see Section 5 of this Agreement, above), you do not have to pay any amount in question while we are investigntitIg ,yonr inquiry, but you must pay the parts of y0ur bi.'.l that are not disputed. No late fees will accrue because of the disputed amount pending resolution of the dispute, although such fees may be imposed mtr0actively if it is determined that the disputed amount is properly payable. We are not responsible for any problem you have with any goods or services you purchase with your Commercial Card or Cardholder Account. 17. RENEWAL CARDS. Unless otherwise revoked or terminated, your Commercial Card and Cardholder Account will be valid through the expiration date printed on the face of the Commercial Card. By accepting the issuance of the Commercial Card, you are requesting that we issue you a renewal Commercial Card before the current Commercial Card expires. We may continue to reissue your Commercial Card but are not obligated to do so. 18. TELEPHONE MONITORING. To help ensure quality customer service, on occasion your calls may be monitored or recorded for training and quality control purposes. All calls you make are treated confidentially. 19, ASSIGNMENT. We may assign your Ca):dholder Account and our rights under this Agreement without prior notice to you, 20. APPLICABLE LAW. The rig~hts and obligations between you and us concerning the Commercial Card and Cardholder Account are governed by and interpreted according to federal law and the laws of the State of Rhode Island, without regard to the conflict of laws principles. Any dispute between you and us will be decided under the laws of the State of Rhode Island. 21. CHANGING THIS AGREEMENT. We have the fight to change and/or add to the terms of this Agreement, including changing or adding to the fees and charges described in Section 11, above, We will give you notice of the change, to the extent required by applicable law, at the last address for you shown in our records. CITIZENS BANK OF RHODE ISLAND P.O. Box 9665 Providence, Rhode Island 02940-9665 SHERIFF'S RETURN - CASE NO: 2003-05925 P COMMONWEALTH OF PENNSYLVANIA: COU/qTY OF CUMBERLJ~ND CITIZENS SAVINGS BANK VS BERNARD MELISS K REGULAR JASON VIORAL Cumberland County,Pennsylvania, Sheriff or Deputy Sheriff of who being duly sworn according to law, was served upon the 24th day of November , by handing to together with says, the within COMPLAINT & NOTICE BERNARD MELISSA K DEFENDANT at 1509:00 HOURS, on the at 510 GRANT DRIVE CAMP HILL, PA 17011 KIMBERLY ENDERS, SISTER a true and attested copy of COMPLAINT & NOTICE 2003 and at the same time directing Her attention to the contents thereof. Sheriff's Costs: So Answers: Service 20.70 Affidavit .00 Surcharge 10.00 R. Thomas Kline ~00 48.70 11/25/2003 BUCH~/qAN INGERSOLL Sworn and Subscribed to before me this /~ ~ day of ~,~ -3~ A.D. ; P~rothonot ary By: ~D~ puty Sheriff CITIZENS SAVINGS BANK, Plaintiff VS. MELISSA K. BERNARD, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 03-5925 CIVIL AFFIDAVIT OF ATTORNEYS' FEES~ COSTS AND INTEREST I, STEPHEN MONIAK, hereby affirm and certify the following: 1. I am an attorney with the law firm of Buchanan Ingersoll PC ("BIPC"). BIPC is a law firm with an office located at 213 Market Street, Harrisburg, Pennsylvania 17101. 2. I submit this affidavit in connection with the Praecipe to Enter Default Judgment Against Melissa K. Bernard filed concurrently herewith by Plaintiff Citizens Savings Bank ("Citizens"). 3. As alleged in the Complaint, Citizens' claims against Defendant Melissa K. Bernard are based upon a Promissory Note, an Overdraft Line of Credit Agreement & Truth In Lending Disclosure, and a Visa Commercial Cardholder Agreement, attached to the Complaint as Exhibits "A", "B", and "C" respectively. 4. Pursuant to these Agreements, Defendant agreed to pay Citizens reasonable attorneys' fees and costs to recover all amounts due under the Agreements. 5. To date, Citizens has incurred attorneys' fees and costs in bringing this action in the amount of $4,679.12. BUCHANAN INGERSOLL PC DATE: January 13, 2004 .~,6qept'~ Monia~ ' - Pa. I.D. # 80035 One South Market Square 213 Market Street, 3rd Floor Harrisburg, PA 17101 (717) 237-4800 Attorneys for Plaintiff Citizens Savings Bank 2 CITIZENS SAVINGS BANK, Plaintiff VS. MELISSA K. BERNARD, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 03-5925 CIVIL PRAECIPE TO ENTER DEFAULT JUDGMENT AGAINST MELISSA K. BERNARD TO THE PROTHONOTARY OF THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY: Pursuant to Rule 1037(b) of the Pennsylvania Rules of Civil Procedure, kindly enter judgment in favor of Plaintiff Citizens Savings Bank and against Melissa K. Bernard, Defendant in this matter, for want of an answer and assess the Plaintiff's damages as follows: Amount claimed in Plaintiff's Complaint .......................................................... $11,626.53 Interest at $2.77 per day on the unsecured loan balance of $7,720.14 per Note from November 8, 2003 to date ..................................................................................................... $185.59 Attorneys' Fees and Costs ..................................................................................... $4,679.12 Total ......................................................................................................... $16,491.24 It is certified that a written notice of intention to file this praecipe was mailed to the Defendant against whom judgment is to be entered and to his attorney of record, if any, after the default occurred and at least 10 days prior to the date of filing of this praecipe, A true and correct copy of the notice is attached hereto as Exhibit A. BUCHANAN INGERSOLL PC DATE: January 13, 2004 One South Market Square 213 Market Street, 3rd Floor Harrisburg, PA 17101 (717) 237-4800 Attorneys for Plaintiff Citizens Savings Bank 2 CITIZENS SAVINGS BANK, Plaintiff VS. MELISSA K. BERNARD, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 03-5925 CIVIL To~ Melissa K. Bernard (Defendant) 415 Brookville Court Mechanicsburg, PA 17050 Date of Notice: December 16, 2003 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17103 717-249-3166/800-990-9108 BUCHANAN INGERSOLL PROFESSIONAL CORPORATION /' I(~Dn 'e Nso°~t~0~ 5arket Square 213 Market Street, 3rd Floor Harrisburg, PA 17101 (717) 237-4800 Attorneys for Plaintiff Citizens Savings Bank 2