Loading...
HomeMy WebLinkAbout10-2376Stock & Grimes, LLP By: EDWARD STOCK, ESQUIRE I.D.# 13657 804 West Avenue Jenkintown, PA 19046 (215) 576-1900 DISCOVER BANK 12 Reads Way New Castle, DE 19720 Vs. BETH SHENK 1856 Walnut Bottom Road Carlisle, PA 17015-7672 Attorney for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW VIl t CIVIL ACTION CQMPLA M 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 AN 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 THE TELEPHONE OR THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 32 SOUTH BEDFORD STREET CARLISLE, PA 17013 1-800-990-9108 717-249-3166 CS, 04.0c) Pp 1krH 0111 4508 g ay U43 -F ?r 1 h i STOCK & GRIMES, LLP BY: EDWARD STOCK, ESQUIRE I.D. #13657 804 West Avenue Jenkintown, PA 19046 (215) 576-1900 Attorney for Plaintiff DISCOVER BANK 12 Reads Way New Castle, DE 19720 Plaintiff VS. BETH SHENK 1856 Walnut Bottom Road Carlisle, PA 17015-7672 Defendant(s) COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION-LAW No. CIVIL ACTION COMPLAINT COUNT I 1. Plaintiff, Discover Bank, is a banking institution organized under the laws of the State of Delaware and maintains a business address of 12 Reads Way, New Castle, DE 19720. 2. Plaintiff is engaged in interstate commerce and is subject to various federal laws and federal banking regulations; and, Plaintiff does not conduct business within the Commonwealth of Pennsylvania within the meeting of any statutes and/or regulations pertaining to foreign corporations. 3. Discover Bank is the issuer and owner of the Discover credit cards which are issued to consumers pursuant to an extension of credit agreement with them. 4. DFS Services, LLC is affiliated with and is the servicing agent for the Discover credit card accounts for Discover Bank. It creates and maintains all of the records in connection with all of the activities and/or transactions regarding the Discover accounts, which records are maintained by DFS Services, LLC in the ordinary course of its business. DFS Services, LLC is authorized to execute the Affidavit attached hereto as Exhibit "A". 5. The Defendant, Beth Shenk, is an adult individual residing at the address contained in the above caption. 6. At the special instance and request of the Defendant, and relying on information received from the Defendant, the Plaintiff issued a Discover credit card to the Defendant so that the Defendant could make purchases from various merchants who were authorized to accept the credit card from the Defendant in lieu of payment by the Defendant to the merchants. 7. The Defendant received the physical credit card issued by the Plaintiff, together with a Cardmember Agreement (extension of credit agreement), which agreement contains the terms and conditions governing the use of the credit card between the parties hereto. Plaintiff attaches hereto as Exhibit "B" a true and correct copy of the said Cardmember Agreement. 8. Thereafter, on sundry and various occasions, the Defendant, pursuant to the extension of credit agreement, used the credit card for purchases and/or other forms of credit, which credit and its terms are governed by the Cardmember Agreement attached hereto as Exhibit "B". 9. The Defendant ratified the terms and conditions of the Cardmember Agreement each and every time he/she utilized the Discover credit card, as well as by continuing to make payments to the Plaintiff after receiving monthly statements summarizing the activities and/or transactions on the account. 10. Plaintiff believes, and therefore avers, that the Defendant's last payment in regard to their obligation was processed on February 17, 2009. As a result thereof, the Defendant is in breach of his/her obligation to the Plaintiff in accordance with the Cardmember Agreement; and as a result thereof, the obligation of the Defendant to satisfy the entire balance in regard to the credit card account became accelerated. 11. Plaintiff attaches hereto as Exhibit "C" a true and correct copy of the last monthly statement of the account issued to the Defendant. 12. The present outstanding balance which is due on the credit account is $11,703.70; and, although repeated requests and demands have been made upon the Defendant by the Plaintiff to satisfy the balance, the Defendant is still in breach of the agreement and have failed to repay the account balance and debt due the Plaintiff. 13. In addition to the balance on the account as indicated above, the Plaintiff has incurred additional damages for attorney fees and costs and request payment of the same by the Defendant pursuant to the terms of the Cardmember Agreement. 14. Plaintiff, through its counsel's investigation, has determined that the Defendant is not in the military service. 15. THIS COMMUNICATION OF PLAINTIFF'S COUNSEL IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. WHEREFORE, Plaintiff, Discover Bank, demands Judgment against the Defendant, Beth Shenk, in the sum of $11,703.70, plus reasonable attorney fees, costs and pre-judgment interest in accordance with law. COUNT II 16. Plaintiff incorporates by reference, all of the foregoing averments of this Amended Civil Action Complaint, as though the same were more fully set forth in length herein. 17. Defendant by the use of the Discover credit card and the extension of credit received the benefit of the same which was given on the said credit account and has failed to make payment for the receipt of the said benefit. 18. As a direct result of the receipt of the benefit of the I extension of credit understanding as above, the Defendant has been unjustly enriched in the amount of $11,703.70 to Plaintiff's detriment. WHEREFORE, Plaintiff, Discover Bank, demands Judgment against the Defendant, Beth Shenk, in the sum of $11,703.70, plus reasonable attorney fees, costs and pre-judgment interest in accordance with law. DATE : ?? { VERIFICATION The undersigned, EDWARD STOCK, ESQUIRE, hereby states that he is the attorney for the Plaintiff who is located outside this jurisdiction and in order to file the within document in an expedient and timely manner, he is authorized to take this Verification on behalf of the said Plaintiff in the within action and verifies that the statements made in the foregoing Complaint are true and correct to the best of his knowledge, information and belief, based upon information provided to him by the Plaiptiff. A Verification signed by the Plaintiff will be provided to Defendant or counsel for Defendant upon request. The undersigned understands that false statements herein are made subject to the penalties of 18 P.A.C.S.A. § 4904, relating to unsworn falsification to authorities. i a a h , h 1• Exhbit "A" ATTORNEY: STOCK ACCOUNT NUMBER: 6011002963376769 BALANCE: $.,1,703.70 CARDMEMBER (S): BETH A SHENK STATE OF OHIO COUNTY OF FRANKLIN Nicole Rose, personally appeared before me, this day and after being duly sworn, according to law, upon his/her oath and says: I am a Legal Placement Account Manager for DFS SERVICES LLC., the servicing agent of DISCOVER BANK, an FDIC insured Delaware State Bank. THAT this affidavit is made on the basis of my personal knowledge and in support of Plaintiff s suit on account against the Debtor(s) THAT, in my capacity as Legal Placement Account Manager, I have control over and access to records regarding the Discover Card Account of the above referenced Debtor(s), further, that I have personally inspected said Account and statements regarding the balance due on said account. DFS SERVICES LLC. maintains these records in the. ordinary course of business. THAT the annexed statement of account is a true and correct statement of what is now due and owing Discover Bank on the account, and exhibit A is a copy of the Cardmember Agreement . between Discover Bank and the above referenced Debtor(s). The Cardmember Agreement governs the terms and conditions of the relationship between Discover Bank and the Debtor(s) in connection with the account. Based on my review of the account records, to the best of my knowledge and belief the above referenced Debtor(s) is not engaged in the military service of the United States and is a resident of the State and of the Country in which this action has been filed. I declare under penalty of perjury that the knowledge. Sworn and Subscribed before me, This day of Wednesday, November 25, 2009. NOTARY 011tH ? Llaiaa my ' f - K. RENEE LIVENG(mp Notary Pubk ?rZ * = In and for the St*ofOW ?;:??= Conunission6 _ Apr. 0 I a h Exhibit "B" YOUR DISCOVER' CARD ACCOUNT C*DMEMBER AGREEMENT ............................ Pages 1-13 The terms and conditions of your Account, including how we calculate finance charges, our fees and an Arbitration of Disputes section. You have the right to reject the arbitration provision with respect to your new Account within 30 days after receiving your Card, as explained in the Rigi t to Reject Arbitration" section at page 12 'ACY POLICY ............................................... Pages 13-16 A summary of the personal information we collect, when it may be shared with others and how we safeguard the confidentiality and security of information. You may limit our sharing of such information with others as explained in section 4 of the Privacy Policy at page 15. ING RIGHTS ................................................ Pages 16-17 Important information about your rights and our responsibilities under the Fair Credit Billing Act CRIPTION OF COVERAGE ....................:....Pages 18-25 The terms and conditions of the Scheduled Air Travel Accident Insurance and the Secondary Rental Car Collision Coverage that is provided at no charge to you when you use your Card to purchase airline tickets or rent an automobile. GL?BAL TRAVELER'S HOTLINE ......... ............... Page 25 The terms and conditions of this free travel assistance benefit. Discover Bank, Member FDIC TI-21A.0509 AGREEMENT read this Agreement carefully before using your Discover` Card Account It contains the teams and conditions of your Account, some of which may have changed from earlier We provided to you. In the event of any differences, this Agreement shall control. We respect your privacy. See the Privacy section on page 9 and our Privacy Policy for additional ation. The Arbitration of Disputes section on page 11 includes a waiver of a.number of-rights, including the right to a jury trial. The Right to Reject Arbitration section on page 12 bes the procedure you must follow if you desire to reject the Arbitration of Disputes section. MONS 2 r YOURACCOUNT 2 urAcceptance of this Agreement .......................................................... 2 matted Uses of Your Account ................................................................ 2 jhibited Uses of Your Account ................................................................ 3 rchases and Cash Advances in Foreign Currencies .............................. 3 sh Advances ........................................................................................... . 3 ance Transfers ....................................................................................... 3 Kill Authorizations ................................................................................... 3 horned Users ............................................................ .................... 3 autated Use ............................................ _......................................... 3 jr Credit Lines ......................................................................................... 4 ,PAYMENTS ....................................................................................... 4 mise to Pay ........................................................................................... 4 i *ly Billing Statement ........................................................................... 4 ,thy Payment Options .......................................................................... 4 xmatic Billing Arrangetnents .................................................................. 5 u We Apply Payments ............................................................................ . 5 unum Monthly Payment ........................................................................ 5 r-A-Payment Offers ............................................................................... 5 fit Balances .......................................................................................... 5 E CHARGES .......................................................................................... 5 r We Calculate Periodic Finance Charges ............................................. 5 F We Calculate Your Balances ............................................................... 6 able or Fb(ed Interest Rates ................................................................. 7 tuft Rate ................................................................................................ 7 i Advance Transaction Fee Finance Charges ..................................... 7 nos Transfer Transaction Fee Finance Charges ................................. 8 ign Currency Transaction Fee Finance Charges .................................. 8 num Finance Charge .......................................................................... 8 ............................................................................................................. 8 jai Fee ................................................................................................... 8 Fee ...................................................................................................... 8 limit Fee ................................................................................................. 8 Returned Payment Fee .............................................................................. 8 Returned Discover Card Check Fee ........................................................... 9 Pay-By-Phone Fee ..................................................................................... .. 9 Oesearch Fee ..................................................... ......................:................. 9 DER ULT AND CANCELLATION ..................................................................... 9 , ypes of Default ..........:............................................................1................. .. 9 i c onsequences of Default ........................................................ {,................. 9 C ancellation ............................................................................................... . .. 9 'RN ................. CY AND OUR COMMUNICATIONS WITH YOU ................. .. 9 ur Privacy Policy ....................................................................................... .. 9 sporting to Credit Reporting Agencies ..................................................... 9 O ur Communications with You ................................................................ 10 eleasing Information About Your Account .............................................. 10 lectronic Notices to You .......................................................................... 10 latices - Changes to Your Information .................................................... 10 CLAI S AND DISPUTES .................................................................................. 10 erchant Disputes ....... _ ............................................................................... 10 laim Notices .............................................................................................. 10 rbitration of Disputes ................................................................................. 11 fight to Reject Arbitration ........................................................................... 12 .E L INTERPRETATION OF THIS AGREEMENT ....................................... 13 ... ........ ,........................................... ......... verablity 13 fiance with Interest Rate Limitations .................................................. 13 oveming Law ............................................................................................ 13 1SSI NMENT OF ACCOUNT .......................................................................... 13 GES TO THIS AGREEMENT ................................................................. 13 "Acc unt" means your Discover Card Account "A orized User" means any person whom you autlwr¢e to use your Account or a Card, whether you notify us or not "Ca " means any one or more Discover Cards issued to you or someone else with your authorization. "Price g Schedule" means the document accompanying your Card and fisfing the Finance Charge rates that apply to your Account The Pricing Schedule is part of this Agreement fi "We,' "us" and"our" refer to Discover Bank, the isw ofyour Dis'boverCard. "You,' "your' or" yours" refer to, in addition to you, the Cardmember, any other person or persons who are also contractually gable under this Agreement USING YOUR ACCOUNT Your, ceptance of this Agreement The use of your Account or a Card by you or an Authorized User, or your failure to cancel your Account within 30 days after receiving a Card, means you accept this A ree-rnent, including the Arbitration of Disputes section on page 11. You may, however, reject the Arbitration of Disputes section as explained on page 12. Uses of Your Account Your Account may be used for. • to purchase or lease goods or services from par-ficpating merchants by presenting your Card or Account number or by using promotional checks, which we may furnish to you, in with such additional terms and conditions as we may offer from time to time. Cash dvances- to obtain cash advances from participating automated teller machines, financial institutions or other locations, the purdrase of lottery tickets, racetrack wagers, vo cfm redeemable for c ac or for casino chips, money orders, travelers checks, savings bonds,lbreign currency and wire transfers, or by means of checks which we may furnish to you, all in accordance with such add' ' I temps and conditions as we may offer from time to time. Bai Transfers - to transfer balances from other aed fors or to make other transactions by means-of balance transfer coupons or checks, in accordance with such additional tens and conditions as me offer from time to time. In add , your Account may be used to guarantee reservations at p ' Ong establishments. You will be liable for guaranteed reservations that are not cancelled prior to the tune specified by the establishment Your Account may be used for personal, family, house d and charitable purposes. Prohi Uses of Your Account Your Account may not be used to obtain bans to purchase, carry or trade in securities, to pay any amount you owe under this Agree-ment or for any transactions that unlawful where you reside or where you are physically located when you use the Account to initiate the transaction ('Prohib'ited Transactions"'). Purch ses and Cash Advances in Foreign Currencies. If you make a purchase or cash advance in a foreign currency, it will be converted to U.S. dollars using either a government-mandated rate, a gove nt-published rate or the interbank exchange rate, depending on the country and currency in which the transaction is made. The rate used will be the rate in effect on the conversion date for the transa 'on, which may be different than the Transaction Date as sham our your statement. We charge a Foreign Currency Transaction Fee Finance Charge for each purchase made in a foreign curre as described in the Foreign Currency Transaction Fee Finance Charges section on page 8. Cash dvances. We may periodically offer you special rates on dash advances for the time period specified in the offer, subject to the Defadrltt Rate section. The offer may contain a Cash Advance Tra n Fee Finance Charge for each cash advance. After the expiration of the special rate, the standard Annual Percentage Rate for cash advances will apply. Balan a Transfers. We may periodically offer you the oppor-tunity to make balance transfers from other creditors or to make other transactions to your Account by means of balance transfer coupons or dip . Each offer will contain an initial special rate, which will be the Annual Percentage Rate that will apply to transferred balances for the time period specified in the offer, subject lo the Default Rate n and may contain a Balance Transfer Transaction Fee Finance Charge for each balance transfer made during the term of the offer, as disclosed in the otter and as set forth in the Pricing Sched , if applicable. After the expiration of this time period, the Annual Percentage Rate that applies for purchases will apply to trans-fend balances. Balance transfers subject to the initial special rate are referred to as special rate balance transfers; balance transfers for which the initial special rate has expired are referred to as purchase rate balance transfers. Each offer will contain an expiration date. If you attempt to transfer balances by means of a check after the expiration date, we will treat the transaction as a cash advance. We will not make balance transfers attempted by means of a coupon after the expiration date. Credit Authorizations. Certain transactions will require our authorization prior to completion. In some cases, you may be asked to provide identification! We have the right not to authorize a transaction forsecurity or other reasons. Also, if our authorization system is not working, we may not be able to authorize a transaction. We will not be liable to you if any of these events happen. Au rized Users. If you want to cancel the authority of a current Authorized User to use your Account or a Card, you must notify us and destroy any t rd in that person's possession. You can notify us b telephoning 1-800•DISCOVER (1-800-347-2683), or by v,rriting Discover Card, PO Box 30943, Salt Lake City, UT 84130-0943. None of your rightsunder this Agreement (other than to pay amo nts owed) may be exercised by any person not a party to this Agreement acting pursuant to a power of attorney, without our separate written agreement (which we are rat obligated to give). Una thorized Use. Prior to its use, each Card must be signed by the person to whom it is issued. If a Card is lost or stolen, or if you think that someone is using your Account or a Card without your ermission, notify us immediately. You can notify us by telephoning 1-800-DISCOVER (1-8 -347-2683), or by writing Discover' Card, PO Box 30943, Salt Lake City, UT 84130-0943. You agree to assist us in determining the facts relating to any theft or possible unauthorized use of your ocount or a Card and to comply with such procedures as we may require in connection with our invest-igation. Your Credit Lines. We will advise you of your Account credit line. We may impose a lower line that will apply to cash advances, referred to as the cash advance credit line. We may also impose a lower line at will apply to balance transfers, referred to as the balance transfer credit line. You agree not to allow your unpaid balance, including Finance Charges and fees, to exceed your Account credit line. If yo exceed your Account aedit line, we may request immediate payment of the amount by which you exceed your Account credit line. We ay increase or decrease your Account credit line, your cash advance credit line or your balance transfer credit line without notice. The credit available for your use may, from time to time, be less than our Account credit line. For purposes of determining your available credit, we reserve the right to postpone for up to 15 business days reducing-your unpaid balances by the amount of any payiT ant that we receive. Your available credit will not be increased by the amount of any credit balance. MAK G PAYMENTS Promise to Pay. You agree to pay us in U.S. dollars for all purchases, cash advances and balance transfers including applicable Finance Charges and other charges or fees, incurred by you or anyone you eorpermitiouseyour AcoountoraCard, even NyoudoMwilfyusthat others areusing your AocauntoraCard. ifyoupayusinother4wU.S.dollarswemay.refusabacceptthe pa nt or charge your Account our cost to convert your payment to U.S. dollars. Al checks must be drawn on funds on deposit in the U.S. You may rat use a cash advance check, balance transfer the or coupon, or any other promotional check drawn on any Discover Bank credit card account to make payments on your Account If your Account is a joint Accorant, each of you agrees to be liable ind' ' ualiy and jointly for the entire amount owed on your Account We can accept late payments or partial payments or checks and money orders marked" payment in fulr or with any other restri . e endorsement without losing arty of our rights under this Agreement Mon ly Bilking Statement We will send you a billing statementafter each monthly billing period in which you have a debit or credit balance, unless we waive our right to do so as pemnitted by law. The billing statement will show all purchases, cash advances, balance transfers, Finance Changes and other charges or fees and all payments or other credits posted to your Account during the billing period It will show your New Balance, Payment Due Date and Minimum Payment Due as of the end of the billing period. If your prior month's payment is returned unpaid, your requiredMinimum P nt Due may be higher than shown on your billing statement;. See the Minimum Monthly Payment section on page 5. Mont ly Payment Options., You may at any time pay the entire New Balance shown on your billing statement, but each month you must pay at least the Mini murm Payment Due as described in the Mini m Monthly Payment section. All payments must be made in accordance with the terms, including the payment cutoff time, stated on your monthly billing statement, and we will credit your Acco it in accord-ance with those terms. In addition, we reserve the right to change those terms without prior notice as permitted by law. Auto atic Billing Arrangements. If your Account number and/or Card expiration date changes and our records Indicate you have automatic billing established with a merchant, we will attempt to pro' your new Account infommation to that merchant To ensure uninterrupted billing, we recommend that you verify the merchant has your newAccaunt information. You must contact the merchant direc# if you do not wish to continue the automatic billing arrangement How a Apply Payments. We will apply payments and credits to the New Balance shown on your current billing statement in order of the Annual Percentage Rate apps-cable to the balance of each transa,tion category (as referenced in the Finance Charges section), generally from lowest to highest begin-ning with the balance subject to the lowest Annual Percentage Rate. We then apply payments and credits to any new transactions using the same menUhod. However, we have the right to apply payments and credits to balances with higher Annual Percentage Rates prior th balances with r Annual Percentage Rates, such as when there are two initial special rates applicable to your Account and the lower Annual Percentage Rats A expire before the higher Annual Percentage Rate. Minim m Monthly Payment The Minimum Payment Due each month coil be the greater of. • the IS ew Balance If it is Less than $15; • $15 ' the New Balance is $15 or more; or I I • any dire amount plus the greater of. 2% of f e New Balance (excluding current Periodic Finance Charges, Late and Overlimvt Fees) rounded up to the nearest dollar or curren Periodic Finance Charges plus Late and Overfenit Fees plus $15 (not to exceed 3% of the New Balance) rounded up to the nearest dollar. We also include some or all the amount by which you exceed yourAccarnt credit One. If more than 90% of your New Balance consists of specakate balance transfers, we may, at our discretion, increa your Minimum Payment Due to a maximum of 4% of the New Balance if it would otherwise be less than that We may subtract certain fees to calculate the Mini-mum PaymentDue. The Minirni. m Payment Due will never exceed the New Balance. Paying the Minima n Payment Dux' may be insufficient to bring your Account balance below your Account credit line and, consequently, may not a id the imposition of an additional Ovenlimit Fee described in the Overlimit Fee section. Skip- Payment Offers. We may from time to time allow you to not make a minimum monthly payment and will notify you when this option is available. If you take advantage of this offer and do not make minimum monthly payment, finance charges and any applicable fees will accrue on your Account in accordance with this Agreement and you must pay the Minimum Payment Due for the followi g billing periods. Credit Balances. We will refund any credit balance within seven business days from receipt of your written request If you do not request a refund, we will auto-matically refund credit balances greater than $1 that remain in your Account after 6 months. FINAN E CHARGES How Calculate Periodic Finance Charges. We begin to impose Periodic Finance Charges on all transactions from the Transaction Date for the transaction as shim on your billing statement unless transaction is posted to your Account after the dose of thp billing period in which it occurs, in which case we begin to impose Periodic Finance Charges on that transaction from the first day of the bill! period in which it is posted to your Account We continue to impose Periodic Finance Charges until the date you pay your entire New Balance, by making payments or receiving credits. Howe r, If you paid the New Balance on your previous billing statement by the Payment Due Data shown on that billing statement and you pay the New Balance by the Payment Dun Date on your currant billing statement we will not impose Periodic Finance Charges on new purchases, that is, purchases first appearing on the current billing statement We call this the "grace period." There is no grape period on balance transfers or cash advances. We fort your transactions into groups of purchases, cash advances, and balance transfers and then further sort the transactions within each group by their Annual Percentage Rate. For example, pur4nases subject to a promotional rate and purchases subject to a standard rate would be separate groups. We refer to these groups as transaction categories. At the end of each billing period, we com rte balances and Periodic Finance Charges for each day of the billing period for each transaction category. We use the following equation to compute Periodic Finance Charges for each Iran action category: { (Ave ge Daily Balance) times (days in billing period) times Dail Periodic Rate). (You may refer to the finance charge summary on your billing statement for these amounts.) Then we add up the Periodic Finance Charges for each transaction category to get the total Periodic Fina ice Charges for your Account The Average Daly Balance is shown as zero if, because of the grace period, no Periodic Finance Charges apply to the balance in a trans-action category. How We Calculate Your Balances. We use the Average Daily Balance (including new transactions) method of calculating the balance upon which we Impose Periodic Finance Charges. We compute the rage Daily Balance for each transaction category by adding up all the daily balances in a billing period for a transaction category and dividing the total by the number of days in the billing period. We mpute the daily balance for each transaction category on each day by first adding the following to the previous days daily balance: transactions with a Transaction Date of that day as shown on your 'ling statement unless the transaction is posted to your Account after the close of the billing period in which it occurs, in which ease the transaction will be added to the dairy balance as of the first day the billing period in which it is posted to your Account fees charged that day and Periodic Finance Charges accrued on the previous days daily balance; and by then subtracting any credits and payfr ants that are applied against the balance of the transaction category on that day. In calculating the daily balance for the first day of the billing period, we consider the "previous days daily balance to he been your balance for each transaction category on the last day of your previous billing period. All fei s charged to your Account are added to the standard purchase trans lion category with the exception of Cash Advance Transaction Fee Finance Charges which are added to the applicable cash advance fro action category and Balance Transfer Transaction Fee Finance Charges which are added to the applicable balance transfer transaction category. When the special rate expires, we move the un balance of the balance transfer aril the Balance Transfer Transaction Fee Finance Charges to the standard purchase transaction category. However, if the special rate has been temtinated under the Default Rate section, we leave the unpaid balance of the balance transfer and the Balance Transfer Transaction Fee Finance Charges in the applicable balance 6ansTer transaction category until special rate would have expired. Varna le or Fixed Interest Rates. The Daily Periodic Rate and corresponding Annual Percentage Rate that apply to each transaction category are either fixed rates or variable rates as set forth in your Prig Schedule or in any special offers you receive from us. The Daily Periodic Rate is 11365th of the corresponding Annual Percentage Rate. Variable Annual Percentage Rates are deter-mined by addi a specified number of percentage points to the Prime Rate. This is shown on the Pricing Schedule as "Prime + (per-ceriiage points).' For purposes of this Agreement, the Prime. Rate is the highe rate of interest listed as the "prime rate" in the Money Rates section of The Wag Skeet Joumaf on the last business day of the month. The Prime Rate is merely a pricing index and does not repre nt the lowest or best interest rate available to a borrower at any bank at any given time. If you have a variable rdte, your Annual Percentage Rate will increase or decrease when the Prime Rate cha Z. This change will be effective beginning with the first day of the billing period that begins during the same month as the change in the Prim Rate. An increase in the Annual Percentage Rate may i se your Minimum Payment Due. Defa It Rate. Each time you do not fnake a required payment on time or each time you exceed your Account credit One twice in a twelve month period (each, a"Detault Rate Event), we may inorease the ndard Annual Percentage Rates for purchases, balance transfers and cash advances to a variable rate equal to the Prime Rate + up to 27.99%, but such rate will never exceed 29.99% (tire "Default Rate"). At the same time, any special rates on purchases, balance transfers or cash advances will end and the Default Rate may appy. The maximum Default Rate which would currently apply is set rth in your Pricing Schedule. We will base your Default Rate on factors such as: your current APRs -yoirpaymenthistorywithus - yo r general credit history Any i sed rate will apply beginning with the first day of the billing period in which () we did rat receive at least the Minimum Payment Due by the Payment Due Date or (ii) you exceeded your A credit One for the second time in a twelve month period. If your standard Annual Percentage Rate for purchases was increased under this or Any previous version of the Default Rate section and, any nine consecutive billing periods thereafter another Default Rate Event does not occur, than your Annual Percentage Rate for your new purchases will be reduced to a lesser variable rate which be higher than your previous standard Annual Percentage Rate for purchases and your Annual Percentage Rate foryour ads" purchase balance may be reduced to a lesser variable rat which y be higher than your previous standard Annual Percentage Rate for purchases. Any reduced Annual Percentage Rates on new and existing purchases may be different and will apply begin with the first day of your ter)th biding period. However, ff a Default Rate Event occurs in the tenth billing period, a Default Rate will apply. i Cash dvance Transaction Fee Finance Charges, Unless otherwise specified in a cash advance offer, vie will charge you a Cash Advance Transaction Fee FINANCE CHARGE of 3% of the amou of each new cash advance with a minimum Cash Advance Transaction Fee FINANCE CHARGE of $5 and no maxi-mum The imposition of Cash Advance Transaction Fee Finance Charges may k in an Annual Percentage Rate for cash advances that is higher than the nominal Annual Percentage Rate. Al forms of cash advances, including the use of Discover Card checks, regardless of the rpose for which used, are subject to Cash Advance Transaction Fee Finance Charges. To obtain the total Finance Charge on cash advances for each bi6ing period, we add any Cash Advance Transa ton Fee Finance Charges for the billing period charged under this section to any Periodic France Charges calculated under the Periodic Finance Charges section for each cash advance 6a category and add up these amounts. Balanc Transfer Transaction Fee Finance Charges. If the balance transfer offer you receive contains a Balance Transfer Trans-action Fee Finance Charge, we will charge you a Balance Transfer Trans Fee Finance Charge for the amount of each balance transfer made under that offer. If there is a Balance Transfer Transaction Fee Finance Charge in conjunction with the offer you receive I when you applied for an Account it will be in the amount set forth in the Pricing Schedule. The imposition of Balance Transfer Transaction Fee Finance Charges may result in an Annual Pencen age Rate for balance transfers that is higher than the nominal Annual Percentage Rate. To obtain the total Finance Charge on balance transfers for each billing period, we add any Balance Transfe Transaction Fee Finance Charges calculated under the Periodic Finance Charges section for each balance transfer trans-action category and add up these amounts. Foreig Currency Transaction Fee Finance Charges. We will charge you a Foreign Currency Transaction Fee FINANCE CHARGE of 21% of the U.S. dollar amount ofeach purchase made in a foreign rrency. The imposition of Foreign Currency Transaction Fee Finance Charges may result in an Annual Percentage Rate for purchases that is higher than the nominal Annual Percentage Rate, To obta the total Finance Charge on purchases for each billing period, we add any Foreign Currency Transaction Fee Finance Charges for the billing period charged under this section to arty Periodic Finance Charges calculated under the Periodic Finance Charges section for each purchase transaction category and add up these amounts. Minimu Finance Charge. We will charge you a minimum FINANCE CHARGE of $.50 for any billing period in which Periodic Finance Charges of less than $.50 would otherwise be imposed. FEES Annual ee. If your Pricing Schedule accompanying your Card includes an Annual Fee, we will charge you an Annual Fee in the amount indicated. We will charge you this fee when we open your Account and at the beginning of each anniversary year your Account is open. The Annual Fee is not refundable, except as provided by law. Late Fe . We will charge you a Late Fee I you have failed, as of the Payment Due Date, to make the Minimum Payment Due that was required to be paid for that billing period. The amount of the Late Fee is based on the sum of all outstanding purchases, cash advances, balance transfers, other charges, other fees and Finance Charges at the end of the billing period forwhich "did not receive timed payment If the sum is $250 or less, the fee is $19;f it is greater than $250, the fee is $39. Ovedimit Fee. We will charge you an Overlie- t Fee each time that, as of the close of a billing period, your outstanding Account balance exceeds your Account credit line. This fee may be charged even if the transaction which causes you to exceed your Account credit line is authorized by us or If you exceed your Account credit One due to the posting of Finance Charges or fees to your Account The amou it of the Ovedimit Fee is cased on the sum of all outstanding purchases, cash advances, balance transfers, other charges, other fees and Finance Charges at the end of the billing period. ti the sum i equal to or less than $500 and you exceed your credit line, the Ovedimit Fee is $15. If the sum is greater than $500 and you exceed your credit line, the Ovedimit Fee is $39. Retu ed Payment Fee. We will charge you a Returned Payment Fee of $35 each time you pay us with a check or oth?r instrument that is returned unpaid. This fee will also apply if a debit transaction to a posit account from which you have authorized us in writing, electronically or orally to periodically deduct all or a part of an amount you owe us under this Agreement is returned unpaid. We will charge you this fee the first time any payment is returned unpaid, even I it is paid upon resubmission. Retur ed Discover Card Check Fee. We will charge you a Returned Discover Card Check Fee of $35 each time we decline to honor a Discover Card cash advance check, balance transfer check, pronic purchase check, or other promotional check. Pay-19 -Phone Fee. We may from time to time allow you to make payments by authorizing us over the telephone to transfer or pay funds from a deposit account to your Account We will charge a By-Ph ne Fee of $10 fa each such transfer or payment Rese rch Fee. We may charge you a Research Fee of $5 for each copy of a billing statement or sales slip that you request However, we will not charge a fee if you request copies in connection with a billing nor. DEFA LT AND CANCELLATION Types of Default You are in default if you become insolvent if you file a bankruptcy petition or have one filed against you; if we have a reasonable belief that you are unable or unwilling to repay your oblig ns to us; if you are declared incompetent by a court or f a court appoints a guardian for you or a conservator for your assets; if you die; if you fail to comply with the terms of this Agreement incuudi failing to make a required payment when due, exceeding your Account credit One or using your Card or Account for a Prohibited Transaction; or if you fail to make a required payment when due o any other account you have with us. Cons uences of Default If you are in default we may declare the entire balance of your Account immediately due and payable without notice. If we refer the collection of your Account to an attorney eryT loyan attorney to represent us with regard to moovery of money that you owe ors, we maydtaige you reasonade.attomeys'-fees -and-court or other oDllection_cgsfs as pemtitted bylaw and as _ actual incurred by us, including fees and costs in con-notion with any appeal. We may delay enforcing or not enforce any of our rights under this Agreement without losing or waiving any of them. Cance lation. You may cancel your Account by notifying us in writing or by telephone and returning or destroying every Card and unused check that we have provided you. You can notify us by telep rung 1.800-DISCOVER (1-800-347-2683), or by writing Discover Card, PO Box 30943, Salt Lake City, UT 8413D-0943. Of course, you will still be responsible to pay any amount you owe us accord ng to the ternns of this Agmement If your Account is a joint Account, either Cardmember may cancel the Accou% but you will both remain responsible to pay any amount owed to us according to the ten ns of this Agreement We may cancel or suspend your Account at any time without notice. We may choose not to renew your Account (beyond the expiration data shown on the face of a Card) wiho notice. You must ret um any Card or unused checks to us upon request PRIVA Y AND OUR COMMUNICATIONS WITH YOU Our Privacy Policy. We may from time to time review your credit, employment and income records. We respect the privacy of infomnation about you and your Account Our Privacy Policy includes a sum ry of the personal infor-mation we collect when it may be shared with others, how we safe-guard the confidentiality and security of information and the steps you may take to limit our sharing of such in mmation with others. Please read it carefully as it is part of your Cardmember Agreement Repo ng to Credit Reporting Agencies. As incii-cated in our Privacy Policy, we may report to credit reporting agencies and other credibrs the status and payment history of yourAccount including neg ' credit information. Late payments, missed payments or other defaults on your Account may be reflected in your credit report We normally report to such credit reporting agencies each month. If you bet eve that our report of yourAceDunt status is inaccurate or incomplete, please write us at the following address: Discover Caryl, PO Box 15316, Wilmington, DE 19850.5316. Please include your name, ddress, home telephone number and Account number. Our C munications with You. Our personnel may listen to or record telephone calls between you and our representatives without additional notice to you as permitted by haw. We may use any med' , including but not limited to mail, live telephone calls, automated telephone equipment prerecorded telephone calls, e-mail and may make calls to your cell phone to contact you about your Accou or offer you products or seivices that may be of value to you. If you prefer not to be contacted in one or more of these ways, telephone us at 1.800-DISCOVER (1-800-347-2683) or write to us at Di r Card, PO Box 30961, Salt Lake City, UT 84130.0961. Releas ng Information About Your Account We provide various methods by which you can obtain vnfomration about your Account We will only release such information to you, any Author4zed User that our records indicate is an authorized buyer on your Account and any other person with your prior permission, in addition to as pro-vided in our Privacy Policy or as required by law. Our security measu cannot insure against unauthorized inquiries. You agree that we will not be responsible for the release of information to anyone who, even 9witiwut your authorization or permission, has gained ssession of a Card or has leamed other identifying characteristics about you such as your per-sonai identificationlnumber, Account number or social security number. Electra is Notices to You. We may offer you the opportmity to receive certain notices from us elec-trDnicaly, rather than through the mail, including monthly billing state-ments and change of terms notices. The terns and conditions for receiving these electronic communications will be described in the offer. Notices - Changes to Your Information. If you change your e-mail address, mailing address or telephone number you must notify us of your new address ortelephone number within 15 days. You can ratify Lis by telephoning 1.800-DISCOVER (1-800-347-2683) or by writing Discover* Cams, PO Box 30943, Saft Lake City, UT 84130-0943. If your Account is a Joint Account any notice we mrarl to an address you have provided for the Account will serve as notice to both Cardrnembers. CLAIM AND DISPUTES Mercha it Disputes. We are not responsible for the refusal of anyone to accept or honor a Card or to accept checks that we have provided you. If a merchant fails to Mvide your purchase to your satisfy on and you request a credit to your Account we will investigate the dispute. If we resolve the dispute in your favor, we will issue a credit to your Account and you will be deemed to have assigned to us your claim against the merchant andlor any third party for the credited amount Upon our request, you agree to provide us with written evidence of such assignment Claim tikes. In the event that you or we have a claim that arises from or relates to your Account any prior account you had with us, your appli-cation, the relationships which result from your Account or the a force-ability of the Agreement or any prior agreement before inifi-ating, joining or participating in any judicial or arbitration proceeding, as either an individual fi gant or member of a class ClDrocee ding"), the complaining party shall give the other party: (1) a written notice of the claim ("Claim Notice"), at least 15 days before initiating any Proceeding, explaining in reasonable detail the nature o the claim and any supporting facts; and (2) a reasonable good faith opportunity to resolve the claim without the necessity of a Proceeding. This includes any claims invoking our parent corpora on, subsidiaries, affiliates (including, w M-out limitation, DFS Services LLC), predecessors, successors, assigns, as well as the officers, directors and employees of each of these entities. Any Claim tice shall be sent to us at Discover Card, PO Box 3024, New Albany, OH 43054 (or such other address as we shall subsequently provide to you) (the "Claim Notice Address") orto you at your address appearing in our records or, if you are represented by counsel, to your attorney at your attomeys office. Arbltra on of Disputes. Agreement to arbitrate. In the event of any past present or future claim or dispute (whether based upon contact, tort, statute, common law or equity) between you and us adsng m or relating to your Account any prior account you have had with us, your application, the relationships which result from your Account or the enforceability or scope of this arbitration provisio , of the Agreement or of arty prior agreement you or we may elect to resolve the claim or dispute by binding arbitration. IF EITHER YOU OR WE ELECT ARBITRATION, NEITHER YOU NOR WE SMALL HAVE THE RIGHT TO LITIGATE THAT CLAIM IN COURT OR TO HAVE A JURY TRIAL ON THAT CLAIM. PRE-HEARING DISCOVERY RIGHTS AND POST-HEARING APPEAL RIGS WILL BE LIMITED. NEITHER YOU NOR WE SHALL BE ENTITLED TO JOIN OR CONSOLIDATE CLAIMS IN ARBITRATION BY OR AGAINST OTHER CARDMEMBERS WITH RESPECT TOO ER ACCOUNTS, OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR MEMBER OF A CLASS OR IN A PRIVATE ATTORNEY GENERAL CAPACITY ("Cla* Action Waiver'). Notwi Landing anything else to the contrary in this arbitration provision, only a court, and not an arbitrator, shall det r-mine the validity and effect of the Class Action Waiver. Even if all parties have opted to litigate a claim in court, you or we may elect arbitration with respect to any claim made by a new party or any new claims later asserted in that lawsuit and nothing undertaken therein shall I con ' ute a waiver of any rights under this arbitration provision. We will not invoke our right to arbitrate an individual claim you bring in small claims court or your state's equivalent court, if any, unless 1 such ction is transferred, removed or appealed to a different court A Gove ing Law and Rules Your Account involves interstate commerce and this provision shall be governed by the Federal Arbitration Act (FAA). The arbi-tration shall be conducted, at the option of whoe% r files the arbi tion claim, by either the American Arbitration Association (AAA) or the National Arbitration Forum (NAF) in accordance with their procedures in effect when the claim is filed. For a copy of their proceures, to file a claim or for other information, contact AAA at 335 Madison Ave., Floor 10, New York, NY 10017-5905, w w.adr.Qlg (phone 1-800-778-7879) or NAF at PO Box 50191, Minneapolis, MN 5 5 (phone 1-800.474-2371). No other arbitration forum will be permitted, except as agreed to pursuant to eitlier the Changes to this Agreement section or a writing signed by both parties. Unless conse ted to by all parties, no arbitration may be administered by any administrator that has any formal or informal policy, rule or pro-cedure that is inconsistent with or purports to override the terms of this n. If we elect to resolve a claim or dispute by binding arbitration and the arbitrator issues an award in your favor on a claim or dairns with respect to which you would not otherwise be entitled to reyour arbitration filing, administrative and hearing fees, reasonable attorneys' fees andlor other arbitration costs, we will be responsible for paying or reimbursing such costs and fees if awarded by the arbitrator. Fees Costs. At your written request, we will advance any arbitration firing, administrative and hearing fees which you would be required to pay to rsue a claim or dispute as a result of our electing to arbitrate that im or dispute. Send requests to Discover Card, PO Box 30421, Salt Lake City, UT 84130-0421. The arbitrator will decide who will ultimately be responsible for paying those fees. You will ordy be respo ibie for paying or reimbursing our arbitration filing, administrative or hearing fees to the extent you would have been responsible for paying °attorneys' fees and court or other collection costa had - the act on proceeded in court In no event will you be required ID pay any fees or costs incurred by us in connection with an arbitration proceeding where such a payment or reimbursement is prohibited - by a icable law. Head Is and Decisions. Any arbitration hearing will take place in the federal judicial district where you reside. The arbitrator shall follow applicable substantive law to the extent corhsistent with the FAA and ap icable statutes of limitations and shall honor claims of privilege recognized at law and shag be authorized to award all remedies permitted by the substantive laws that would apply if the action were ding in court If requested by any party, the arbitrator shag write an opinion containing the reasons for the award. The arbitrators decision will be final and binding except for any appeal rights under FAA and except that if the amount in controversy exceeds $100,000, any party may appeal the award within 30 days to a three-arbitrator panel, which shall review the award de ravo. Unless applica tile law provides otherwise, the appealing party will pay the cost of the appeal, regardless of its outcome. However, we will consider in good faith arty reasonable request for us to bear the fees charge by the arbitration aciroinistiator and the arbitrators in oonnecbon with the appeal. Judgment upon any award by the arbitrator may be enforced in any court having jurisdiction. Ofher neficiades of this Provisibn. Our rights and obrgatons under this arbitration provision shall inure to the benefit of and be binding upon our parent corporations, subsidiaries, affiliates (including, without fimitation, DFS Services LLC), predecessors, successors, assigns, as well as the officers, directors and employees of each of these entities, and will also inure to the benefit of arty third party named a co-defendant with us or with any of the foregoing in a claim which is subject to this arbitration provision. Your rights and obligations under this arbitration provision shag inure to the benefit of and be 'nding upon all persons contractually liable under this Agreement and all Autihor¢ed Users of the Account S of this Provision. This arbitration provision shall survive termf nation of your Account as well as voluntary payment in full by you, arty legal proceedings by us to oollect a debt owed by you, any bankru icy by you and any sale by us of your Account Right Rej'ectArbitradon. You may reject the Arbitration of Disputes section by providing us a notice of rejection within 30 days after receiving a Card, at the following address; Discover Card, Box 30938, Salt Lake City, UT 84130-0938. If you were previously, subject to arbitration with respect to any accamtwilth us, this right to reject arbitration wig not apply to you. Your rejection notice include your name, address, telephone number, Account number and signature and must not be sent with any other correspondence. Calling us to indite that you reject the Arbitration of Disp section or sending a rejection notice in a manner or fomhat that does not comply with all applicable requirements is insufficient notice. In order to process your notice, we require that the notice be proed by you directly and not through a third party. Rejection of arbi-tra-bon will rat affect your other rights or responsibilitles under this Agreement or your obligation to arbitrate disputes under any other a count as to which you and we have agreed to arbitrate disputes. If you do not send a rejection notice, you will be obligaedby the Arbitration of Disputes section with respect to this and any prior account you have had with us, even if you have previously sent a rejection notice with respect to that prior account LEGAL INTERPRETATION OF THIS AGREEMENT Several irty. If any part of this Agreement becomes unenforceable, it will not make any other part unenforceable, except that If the Class Action Waiver set forth above in the Arbitration of Disputes section invalidated in any proceeding in which you and we are involved, then the Arbitration of Disputes section will be void with respect to That proceeding. Compli rice with Interest Rate Limitations. We intend that this Agreement will comply write applicable interest rate limitations. You will not be required to pay Finance Charges or other charges at a rate that is greater than the maximum amount permitted by law. If it Is ever finally deter-mined trot, but for this section, the Finance Charges or other d>arges under this Agreement would exceed the maxim lawful amount; the Finance Charges and other charges will be reduced tD the maximum lawful amount. Any excess amount that you have already paid will be used to reduce the outstanding balance of your Account or will be refunded to you by means of a check in our discretion. Govemi g Law. This Agreement and any claim or dispute arising out of this Agreement will be governed by applicable federal law and, to the extent state law applies, Delaware law. ASSIGNMENT OF ACCOUNT We may sell, assign or transfer your Account or any portion thereof with-out notice to you. You may not sell, assign or transfer your Account with-out first obtaining our prior written consent CHANGES TO THIS AGREEMENT We may change any term or part of this Agreement, including, but not limited to, any finance charge rate, fee or method of computing any balance upon which the finance charge rate is assess or add any new term or part to this Agreement If required by law we will send you a notice at least 15 days before the change is to become effective. We may apply any such change o the outstanding balance of your Account on the effective date of the change and to new charges made after that date. You may be offered the opportunity to reject some of the change , and if you do, you must notify us in writing within 15 days after the mailing of the notice of change at the address provided in the notice of change, In which case your Account will be c osed and you must pay us the balance that you owe us under the existing terms of the unchanged Agreement Otherwise, you will have agreed to the changes in the notice. Use of your ccount after the effective date of the change will be deemed acceptance of the new terms as of such effective date, even if you pre-viousfy notified us that you did not agree to the Cho e. We may Iso change any term of any product, service or benefit offered in connection with your Account We will notify you as required by law or by the terns of the product, service or benefit POLICY We Ore required by federal law to provide you with a copy of our Privacy Policy each year. If you have previously notified us about your privacy preferences, as described in Section 4, it ;is n6t necessary to do so again unless you decide to change your preferences. We ? espect Your Privacy Our 'ssion is to provide you with superior products and services, along with the peace of mind knowing that the security of your personal information is our top priority; We understand your concerns about guarding information about you and your Account We want to assure you that we haviii taken steps, and will continue to take steps, to safeguard that information. { .This rivacy Policy describes our efforts to meet these objectives. It includes a summary of the following important information: , A luting of the personal information we collect; circumstances in which we may share information with others; ways we safeguard the confidentiality and security of information; steps you may take to limit our sharing of such information with ers. See Section 4 for complete details. read our Privacy Policy carefully. It will help you understand how we collect and share information. t Personal Information Do We Collect? To se you better and manage our business, it is important that we wheat and maintain accurate personal information about you. We obtain this information from applications and other forms you -- - subm to us, from your dealings with us and others, from consumer reporting agencies, and from other sources, such as our Web sites. For example: We in obtain information such as your name, address and date of birth from applications and other forms you submit to us. We m obtain information such as Account balances, payment history, your use of your Account and the types of services you prefer from your transactions and other dealings with us and others. We obtain information such as the balances of your bans with other lenders and your payment history with others from consumer reporting agencies. We obtakm information such as your Internet service provider, your e-mal address, your computer's operating system and Web browser, your Web site use and your product and service prefe ces from your visits to Web sites. 2. Is Personal Information Shared with Others? We liit the sharing of Information with others. Many of the offers you receive for. products and services are provided drectly to you from us. For example, a retailer that accepts ft Discover° Card may cgrrme us with a special offer for Cardmembers, such as a discount certificate or product upgrade. After careful consideration of the nature of the offer and the company, we will create a list of Card embers who may be interested in the offer based on certain dtaracteristics We will send the offer directly to those Cariimerribers on behalf of the retailer by, for example, including an insert in their ly billing statement or maiTng time offer ourselves. We control the information used to make the offer, we do not share ft Est or any information about our Cardmembers with the retailer. Home r, please understand that if you do receive this type of offer from us and choose to take advantage of ik the retailer may then learn information about you because only Carcirnembers with certain c received the other. There , however, circumstances in which we may. share the kibmiation vide tolled about you, as described in Section 1, with other companies in order to provide you with access to products and service and to service your Account effectively, as detailed below. We require these companies to adhere to our privacy standards and to use this infonrmation only for the limited purpose for which it was red. We do not allow them to disclose it to others witlmout our prior approval. a. i h ng Personal Information wrtii Our Corporate Family Our family offers a variety of products and services that can help you manage our finances. In order to provide you with acoss to these products and services, we may share the information we c D about you, as described In Section 1, with other members of our corporate family. These companies include financial service providers that offer credit protection, card servicing and payment oroc9 'no services. Personal Infamahori wdh Nonftf6lfated Parties for Macke Purposes We share the infornmation we culled about you, as described in Section 1, with non-affiliated third parties, holudmg those that accept the Discover Card, in order to provide you with access to. prod and services offered directly by these companies that may be of value to you. These companies include financial service providers, such as insurance companies, and non-finardal companies, such as retailers. Sharing Personal Information *Wh Others We rna? share the information we celled about you, as desrrbed in Section 1, with companies #A perform support or marketing services on our behalf, such as mailing, market reswch and data processing; other fin 'al Institutions with which we have joint marketing agreements; or companies that are our partners for co-brarb credit card programs or reward programs. We may also share such Information as perm by law. How D We Protect the Confidentiality, Security and Integrity of Information about You? We mad in physical, electronic and procedural safeguards to protect the information we collect about you. Access to such information is restricted to individuals who need it in order to service your Account or provide products and services to you, and who are trained in the proper handling of such information. Employees who violate these confidentiality requirements are subject to our disciplinary process Where third parties provide support services, we require them to conform to our privacy standards. It is imix rtant that the information we maintain about you is accurate and complete. If you see information in your monthly billing statements or elsewhere which suggests that our information is incomplete or inaccurate, please write to us at Discover Card, PO Box 30943, Salt Lake City, UT 84130-0943 so that we can update this information. 4. How Can You Limit Sharing of Information About You? We aspect your privacy and offer you choices as to whether we may share information about you with others. You have the option to tell us not to share the information we collect about you, as described in Secon 1, with non-afl'iriated third parties. You also have the option to tell us not to share the information we coW about you, as described in Section 1, with companies in our corporate family. If you indicate a pre renm for either of these options, please understand that you may not receive offers for products and services provided by other companies that could help you lower your costs, maximize your financial reso rtes, or manage your finances. To i dicate your preferences, please call us at 1-800.225.5202 or write to Discover Card, PO Box 30961, Salt Lake City, UT 64130-0961. If you have previously notified us about your priv cy preferences, it is not necessary to do so again unless you decide to change your preferences, Your written request should include your name, address, telephone number and Account nun r(s) and should not be sent with any other correspondence. In order to process your request, we require that the request be provided by you directly and not through a third party. You will need to provi us with your preferences for each credit card account you have with us. You y notify us about your preferences at any time. Your request will remain in effect until you notify us otherwise. We will honor your request and not sham this information except as permitted by law. or example, federal haw permits us to share information about you with consumer reporting agencies, service providers and financial institutions wdtn which we have joint marketing agreements. If you a re a new Cardmerrther, we will not share any information about you, except as permitted by law, for thirty days after we provide this Policy to you in order to give you an opportunity to inform us abo your preferences. If you are an existing Cardmember, please understand that you may continue to receive marketing offers directly from other companies thatwere already in production prior to the ssing of your request This rivacy Policy is provided to the primary Cardmember listed on the Account However, any joint Cardmember has the right to ratify us about preferences and we will treat that request as applying to the entire Account We do not share information about former customers, except as permitted by law. This ratification supersedes all previously issued Privacy Policies. We reserve the right to amend this P ' cy Policy from time to time and we will notify you if we do so. This Ovary Policy is provided to you by Discover Bank and its subsidiaries, which currently include GTC Insurance Agency, Inc. and Discover Products Inc. Unless otherwise specified, it applies to the family of Discover Cards for consumers and the products and services offered in connection with those Canis, including the Wallet Protection card registration service (with the exception of any inforn lion registered incomection with the service, W*h-will not be shared It is partof your CardmemberAgreement and provides a further explanation of how wa collect and share in1ormation. You may ve other rights under state laws that apply to this information. Please rate that you will also receive privacy notices for other credit card accounts you have with us, as well as other financial prod and services provided to you by us and our affiliates. You will need to indicate your preferences for each of these separately as disclosed in the notice. Vern nt Residents - Your state law requires financial institutions to obtain your consent prior to sharing information about you with others. Except as permitted by law, we will not share information we collec; about you with non-affiliated third parties or companies in our corporate family unless you call us at 1-800-DISCOVER (1-800.347-2683) and authorize us to do so. Calif is Residents - Your state law requires financial institutions to obtain your consent prior to sharing information about you with non-affiliated third parties. Except as permitted by law, we will not share nformation we collect about you with rah-affiliated third parties while you are a resident of California. You Billing Rights THIS NOTICE FOR FUTURE USE This nptce contains important information about your rights and our responsibilities under the Fair Credit Billing Act Us in Case of Errors or Questions About Your Bill If you ink your bill is wrong or if you need more information about a transaction on your bill, write us on a separate sheet of paper at the address listed on your bill for Notice of Billing Errors. Write to us as as possible. We must hear from you no later than 60 days afterwe sent you the first bill on which the error or problem appeared. You can telephone us, but doing so will not preserve your rights. In your letter, give us the following information: your and Account number your tar amount of the suspected error. de the error and explain, if you can, why you believe there is an error. If you need more information, describe the item you are not sure about If you authorized us to pay your credit card bill automatically from your savings or cl*cking account, you can stop the payment on any amount you think is wrong. To stop the payment, your letter must reach us three business days before time automatic payment is scheduled to occur. 1 ghts and Our Responsibilities After We Receive Your Notice We m acknowledge your letter within 30 days, unless we have ooawW the error by then. Within 90 days, we mustegher correct the error or explain why we believe the bill was correct. After receive your letter, we cannot by to collect any amount you question or report you as delinquent. We can continue to big you for the amount you question, including finance dmarges and we can apply a unpaid amount against your Account credit limit You do not have to pay any questioned amount while we are irmsfiggating, but you are still obligated to pay the parts of your b8 that are not in if we in I that we made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount If we didn't make a mistake, you may have to pay the finance charges, and you wn11 h to make up any missed payments on ft questioned amount in either case, we will send you a statement of the amount you an and the date that it is due. If you I to pay the amount that we think you owe, we may report you as delinquent However, if our explanation does not satisfy you and you write us within ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your big. And, we must tell you the name of anyone we reported you to. We must tell anyone we report you to that the matter has bee i settled betwreen us when it finally is. If we don't follow these rules, we can't collect the first $50 of the questioned amount, even if your bill was correct. 3. Special Rule for Credit Card Purchases if you Ave a problem with the quality of goods or services that you purchased with a credit card, and you tried in good faith to correct the problem writlm the merchant, you may have the right not to pay the re fining amount due on the goods or services. There are two limitations on this right: (a) you mu have made the purchase in your home state or, if not within your home state, within 100 miles of your current mailing address; and (b) the p irchase price must have been more than $50. limitations do not apply if we own or operate the merchant or if we mailed you the advertisement for the goods or services, Made with Checks or Cash Advances The Special Rule for Credit Card Purchases does not apply to purchases made with a balance transfer check, cash advance or promotional purchase check. Therefore, 1you have a problem with the qual? of goods or services that you purchased with a balance transfer check, promotional purchase check, cash advance check or the proceeds of a cash advance, you do not have the right to with old payment of the amount due. DESCRIPTION OF COVERAGE i SCH DULED AIR TRAVEL ACCIDENT INSURANCE Di ver' Card-members are provided with $500,000,Scheduled Air Travel Accident Insurance' You, your Spouse, Domestic Partner or eligible Dependent Children forWum a ticket was purchased on ur Card (as defined below) will be automatically insured against Accidental Loss of Life arising from and occurring on a Covered Trip while you, your Spouse, Domestic Partner or eligible De ndent Children forwhom a ticket was purchased on your Card are riding as a passenger in or entering, exiting orbeing struck by a Scheduled Aircraft or a conveyance operated by a military trans service or riding as a passenger in or entering or exiting any conveyance licensed to carry the pubic for a fee and while traveling directly to or from the airport immedi-ately preceding the dep re of a Scheduled Aircraft on which the Insured Person has purchased passage and immediately folowing the arrival of a Schedule Aircraft on which the Insured Person was a passenger. 'Co rage is underwritten by Federal Insurance Company, a member insurer of the Chubb Group of Insurance Companies. Certain limitations and exclusions apply. PLA FEATURES THE ENEFITS: The full Benefit Amount ($500,000) is payable for Accidental Loss of Life. The Loss must occur within one year of the Accident M MUM LIMIT OF INSURANCE: If more than one Insured Person suffers a Loss in the same Accident, the Company will not pay more than the maximum Grrit of insurance ($20,000,000) per Aoc' ent If an Accident results in Benefit Amounts becoming payable, which when totaled, exceed the applcable limit of insurance shown above, the maximum limit of insurance oil be divided prop rtionally among the Insured Persons, based on each applicable Benefit Amount In the event of multiple Accidental deaths per Account arising from any one Accident the Comparhls liability for all such osses will be limited to a maximum limit of insurance equal to Iwo times the applicable Benefit Amount for Loss of Life. Benefits will be proportionately divided among the Insured Persons up to the aximum limit of insurance. = ant or Accidental means a sudden, unforeseen and unexpected event happening by chance, and includes unavoidable exposure to elements arising from a covered Hazard. means bodily injury which is Accidental, is the direct source of a Loss, is independent of disease, illness or other cause and occurs while this policy is in force. means a Card account &M It Amount means the Loss amount at the time the entire cost of the passenger fare is charged to an Account ens the Discover Card. Cardihamba- means the holler of the Card whose name appears on the credit card. means the Federal Insurance Company. means travel on a Scheduled Aircraft when the entire cost of the passenger fare for such transportation, less redeemable certificates, vouchers or coupons, has been charged to the Ins Person' s Account ant Child or Children means those children, including adopted children and those children placed for adoption, who are primarily dependent upon the Insured Person for maintenance and su lit and who are: (1) under the age of 19 and reside with the Insured Person; (2) beyond the age of 19, permanently mentally or physically challenged and hcapable of self support; or (3) under the age o 25 and classified as full time students at an Institution of higher learning. means a person who: (1) is at least J,8 years of age and competent to enter Into a contract (2) is not related to the Insured Person by blood; (3) has exolusively lived with the Insured Perso for at least one year prior to the date of enrollment; (4) is not legally manied or sepa-rated; and (5) as of the date of enrollment has with the Insured Person at least two of the following financial arran ements: (a) a joint mortgage or lease; (b) a joint bank account; (c) joint title to or ownership of a motor vehicle or status as a joint lessee on a mDfor vehicle lease; or (d) a joint credit card account with a financial institution. Neither the Insured Person northe Domestic Partner can be married to, nor in a civil union with, anyone else. means the covered circumstances for which this insurance is provided as stated in Section III of the Declarations, Hazards, and described in the Hazards form, as described on page 1 of this D 'on of Coverage. means all Cardmembers, their spouses, Domestic Partners and Dependent Children, as well as authorized users of the Account j.M5 (mans the Loss of Life. Loss if U means death, including clinical death determined by the local governing medical authorities. means DFS Services LLC, the entity responsible for the payment of premium. means an aircraft owned andlor operated by a Scheduled Airline. mans an airline which is either of United States registry and certified by the United States government to any passengers on a regularly scheduled basis or of foreign register and appro by the Unified States government and the appropriate foreign authority. ns hostllfties following a declaration of War by a government authority. If there is no declaration of War, then (1) aimed, open and continuous hostilities between two countries or (2) armed, open continuous hostilities between two factions, eaph in control of territory, or claiming jurisdiction overthe site of the area of hostility. I DISAP EARANCE BENEFIT'S: If the Insured Person has not been found within one year of the disappearance, stranding, sinking, wreddrg or breakdown of any Scheduled Aircraft or conveyance in which the I Person was covered as an oocupent twill be assumed, sut*d ID all othertemrs of the policy, thatthe Insured Person has suffered Loss of Life covered under this policy. EXPO URE BENEFITS: Accident includes unavoidable exposure to eeemnts arising from a covered Hazard. EUG? ILITY: This insurance plan is provided to Insured Persons auto-matically when the entire cost of the passenger fare(s) on a Scheduled Airline is charged to the Cardmember's Account while the ins is effective. It is not necessary for you to notify, the Policyholder or the Company Men Scheduled Airline tickets are purchased. EFFE TIVE DATES: Your insurance under this insurance plan is effective on the later of. 1) April 1, 2007; or 2) the dare you become an eligible Card-member. Your insurance coverage under this ins plan will cease on the earlier of (1) the date the insurance coverage is terminated; or (2) the date you cease to be an eligible Cardmember. COST: This insurance plan is provided at no additional cost to eligible Insured Persons for Covered Trips. Policyholder pays the full lost of the insurance. THE BENEFICIARY: The Loss of Life benefit will be paid to the beneficiary designated by you. If no such designation has been made, that benefit will be paid to the first surviving beneficiary in the foil ' g order. a) your spouse; b) your children; c) your parents d) your brothers and sisters, e) your estate. All other Indemnities will be paid to you. If you wish to charge your beneficiary, you may reque a beneficiary designation form by writing to the plan administrator at The Direct Marketing Group, Inc., 13265 Bedford Avenue, Omaha, NE 68164 or at Benefidaryrequest@TheDirec[MG.coin. EXCL SIONS: This insurance plan does not cover Loss resulting from: (1) an Accident occurring while an Insured Person is in, entering or exiting any aircraft owned, leased or operated by this Poll' der or any aircraft owned, leased or operated by an employee of the Policyholder on behalf of the Policyholder (this exclusion does not apply to aircraft chartered with pilot or crew on one time charter basis), (2) an accident while an Insured Person is in, entering or exiting any aircraft while acting or training as a pilot or crew member (this exclusion does rat apply to passengers who tempor ly perform pilot or crew functions in a lfe threatening emergency); (3) emotional trauma, mental or physical illness, disease, pregnancy, childbirth or miscarriage, bacterial or viral infection, or bodily (functions (except bacterial infection caused by an Accident or from Accidental consumption of a substance contaminated by bacteria); (4) suicide, attempted suicide or Loss that is intentionally selfAnft ; or (5) declared or undeclared War. CLAIM NOTICE: Written claim notice must be given to the Company within 90 days after the occurrence of any Loss covered by this policy or as soon as reasonably possible. Failure to give notice within days will riot invalidate or reduce any otherwise valid claim if notice is given as soon as reasonably possible. CLAIM FORMS: When the Company receives notice of a claim, the Company will send you forms for giving proof of Loss to us within 15 days. If you do not receive the forms, you should send the Coin a written description of the Loss. CLAIM ROOF OF LOSS: Complete proof of Loss must be given to Company within 90 days after the dale of Loss, or as soon as reasonably possible. Failure to give complete proof of Loss within the$e time frames will not invalidate any otherwise valid claim if notice is given as soon as reasonably possible and in no event later than one year after the deadline to submit complete proof of Loss. C IM PAYM ENT: The Company will pay you or your beneficiary the applicable Benefit Amount within 60 days after complete proof of Loss is received and if you, the Policyholder and/or the ben ficiary have complied with all the temps of the policy. AR ITRATION: In the event of a dispute under this policy, either the Com-parry or the Insured Person may make a written demand for arbitration. In that case, the Company and the Insured Person will each selia .1 an arbitiador. The two arbitrators will select a third. If they cannot agree within 15 days, either the Company or the Insured Person may request that the choice of arbitrator be submitted to the American ArN ration Association. The arbitration will be hell in the state of the Insured Person's principal residence. IF Y )U HAVE ANY CLAIM RELATED QUESTIONS, PLEASE CALL THE CLAIMS SERVICE CENTER AT 1-800-CLAIMS-0 (1-800.252.4670). You can also go to the Company Web site (y0ypy, ,G), click on eport a Loss, select Accident, Benefits and Life claims, select the app riate form, print out the claim form, fill out and mail. You can file a claim by mail or fax. Mailing Address: CHUBB GROUP OF INSURANCE COMPANIES CLAIMS SERVICE CENTER 600 INDEPENDENCE PARKWAY PO BOX 4700 CHESAPEAKE, VA 233274700 Fax Number. 1-800-300-2538 Asa andy reference guide, please read this and keep it in a safe place with your other insurance documents. This description of coverage is not a contract of insurance but is a summary of the phi I provisions of the insurance while in effect Complete policy provisions are contained in the Master Policy, which can be obtained from the Policyholder. Pd' #9906-18.06 Policy Underwritten By Plan Administrator Federal Insurance Company The Direct Marketing Group, Inc. a member insurer of the 13265 Bedford Avenue Ch b Group of Insurance Companies Omaha, NE 68164 15 untain View Road, PO Box 1615 Warren, NJ 07061-1651 D RIPTION OF COVERAGE VDARY RENTAL CAR COLLISION COVERAGE erg Cardmembers can benefit from the security and safety offered through Excess Collision Damage Waiver. If you rent a vehicle for 31 consecutive days or less (or 45 days under certain stanoes described below) with your Card (as defined below), you may be eligible for benefits under this coverage. Excess Collision Damage Waiver is an insurance program, underwritten by I Insurance Company Policy #9906-1763 (the'PoILy). Acco6 means a Cana account means the cost lo repair or replace the Rented A at the time of loss, less depredation. means the holier of the Card whose name appears on the credit card. means the direct and accidental damage to a Rented Automobile caused by upset or collision with another object. Collision Damage does not include loss caused by missiles, falling Lmeans cover Card. larceny, explosion, earthquake, wvindslonn, hail, water, flood, malicious mischief or vandalism, riot or evil comnation. e Federal Insurance Company. members and authorized users 4 the Account DFS Services LLC, the entity responsible for the payment of prernium. ns a commercial automobile rental corrpany licensed under the laws of the applicable jurisdiction. means a four w wled pnvate passergertype motor vehicle or a minivan manufactured and designed to transport a maximum of seven passengers and used excursively to carry d Automobile must be designed for travel on public roads and recited from Rental Agency. TOG COVERAGE: ' The IGsion Damage Waiver Coverage is provided to you, as an Insured, automatically when the entire rental fee for the Rented Automobile is charged or debited to your Account It is not necessary for you to notify the Company at the time the rental fee is charged or debited to your Account. You dectirre the Loss/Damage Waiver offered by the vehicle Rental nc y. You rrx)st rent the vehicle in your own raw and sign the vehicle rental agreementlcontract. The co erage period will not exceed 31 consecutive days, or 45 consec five days If the Insured is an employee of an organization which has pro-vided a Card to the Insured for business use. THE KI D OF COVERAGE YOU RECEIVE: In of the premium paid by the Policyholder as required, and subject b all the temps of the Policy, the Comparry agrees lo reimburse on an Actual Cash Value basis either the Insured or the Rental ncy for repair or replacement of the Rented Automobile as a result of Collision Damage to the Rented Automobile. The Company's rabifrly 41 be for a maximum reimbursement of $25,000. In no event w 11 the Company be Gable beyond the amounts actuary paid by the Insured or the Rental Agency. If you o an Insureds primary vehicle insurance or other coverage has made payments for a covered loss, Excess Collision Damage Waiver will cover your deductible and any other eligible amounts not covered by other insurance. This co% rage is not arinclusive, which means it does not cover such things as personal injury or personal liability. It does not cover you for any damages b other vehicles or property. It does not cover you for ny injury to any party. WHO IS COVERED: EXCLU ED RENTAL VEHICLES: Off-road antique or limited edition motor vehicles; trucks; recreational vehicles, campers, pickup tricks, and minibuses; limited edition motor vehicles or high value, exotic, high performance or collector W. H' h value motor vehicles are motor vehicles whose replacement value exceeds $50,000, and antique motor vehicles are.defrW as any vehicle over 25 years old, or any vehicle which has not been ufachured for 10 years or more. WHERE YOU ARE COVERED: Coverage applies to vehicles rented in the United States and Canada only. Co rage is not available where prohibited by law. WH T IS ho COVERED: Co rage does not apply to loss resulting from the following: Any ishonest, fraudylent or criminal act of the Insured. • Fo ry by the Insured. • L due to war or confiscation by authorities. to nuclear reaction or radioactive contamination. The ?nsured being intoxicated, as defined by the laws of the jurisdiction where the loss occurred, or under the influence of any narcotic unless prescribed by a physician. Us? of the Rented Automobile to carry passengers and property for hire. e Rental Agreement Use of the Rented Automobile by a person other than the one author-ized to operate the Rented Automobile by the terms of th Loss of use of the Rented Automobile. Inter ' nal damage to the Rented Automobile by the Insured. D ge which is due and confined to wear and tear, freezing, mechani-cal or electrical breakdown or failure. tires unless the loss is coincident with a covered loss. Use f the Rented Automobile in tests, races or conthsts. The Rented Automobile being operated or located in any territory prohibited by the terms of the Rental Agreement FOR INSUREDS WHO ARE NEW YORK STATE RESIDENTS: To extent that this plan provides insurance against damage to a rented motor vehicle, the following terms and conditions apply. (1) the period of insurance coverage will not exceed 31 consecutive days r 45 consecutive days if the Insured is an employee of an organization whk h,has provided the Cana to the Insured for business use; and (2) the insurance provided by this plan Abe excess over ny other valid and collectible insurance cover-4 the Rented Automobile. However, the insurance provided under this plan may be primary if spedficaliy provided for under the terms of this Man and if following criteria is met (a) the Rented Automobile is rented fbr use outside the United States, its territories and possessions: (b) the Insured is an employee of an organization which has provid )d the Card III the Jnsured for business ruse; and (c) the Rented Automobile is rented wittout a driver. HOW 0 FILE A CLAIM UNDER EXCESS COLLISION DAMAGE WAIVER: P In the vent of a claim, written or verbal notice must be provided as soon as reasonably possible. IF YO HAVE ANY CLAIM RELATED QUESTIONS, PLEASE CALL THE CLAIMS SERVICE CENTER AT: 1400-CLAIMS-0 (1800-2524670). You in also go to the Company Web site (mmw Chubb com), dick on Report a Loss, select Accident, Benefits and Life claims, select the appropriate form, print out the claim form, fill out and mail. You can fi a claim by mall or fax. Mailing Address: CHUBB GROUP OF INSURANCE COMPANIES CLAIMS SERVICE CENTER 600 INDEPENDENCE PARKWAY PO BOX 4700 CHESAPEAKE, VA 233274700 Fax Number. 1.800.300-2538 CLAI PROCEDURE: The Insured must send the Company written notice of a daimr, including the Insureds name and Policy number, within 90 days after a covered loss occurs. If notice cannot be given within that time, it must given as soon as reasonably possible. To file a swum Proof of Loss, the Insured must send the following information to the Company or its authorized representative: A co of the Account statement showing the automobile rental transaction. A copy of the automobile rental agreement • A col: y of the police report A copy of the initial claim report submitted to the automobile Rental Agency. A copy of the paid claim presented by the automobile Rental Agency for the Collision Damage for which the Insured is responsible. Proof o submission of the loss to, and the results of any settlement or denial by the applicable insurance carver(s). If no o er insurance is applicable, a notarized statement from the Insured to that effect Reminder Please refer to the Insurance Disclosures section. INSU NCE DISCLOSURES Asa ha rdy reference guide, please read this document and keep it in a safe place with your other insurance documents. This Summary of Cover-age is not a contract of insurance but is simply an in state-ment to eligible Insureds of the principal provisions of the insurance whle in effect Complete provisions pertaining to this plan of insurance are contained in the master policy on file with DFS S rvices LLC, herein referred to as the Policyholder. If a statement in this Summary of Coverage and any provision in the policy differ, the policy will govem. Policy Underwritten By Plan Administrator Fed insurance Company (•Comparty') The Direct Marketing Group, Inc. a member of the 13265 Bedford Avenue Chub Group of Insuranice Companies Omaha, NE 68164 15 ntain View Road, PO Box 1615 W wren, New Jersey 07061-1651 Masher Policy Number. 9906-17-63 Effe tive date of benefits: Effective April 1, 2007, this guide replaces all prior disclosures, program descriptions, advertising andfor brochures by any party. Policyholder and Company reserve the right to ange the benefits and features of these programs at any time. ' Can ellation: Policyholder can cancel these benefits at any time or choose not to renew the insurance coverage for all authorized Cardmembers. If Policyholder does cancel these benefits, you will be notifi at least 60 days in advance. If the Company terminates, cancels or chooses not to renew the coverage to Porwyhoider, you will be notified as soon as is practicable, Insurance benefits will still ap for any benefits you were eligible for prior to the date of such terminations, cancellation or non-renewal, subject to the terms and conditions of coverage. Ben fits to you: These benefits apply only to Cardmembers whose cards are issued by U.S, financial insti)utions. The United States is defined as the 50 United States, the District of Columbia, Ame !can Samoa, Puerto Rioo, Guam and the U.S. Virgin Islands. No person or entity other than the Card-member shall have any legal or equitable right, remedy, or claim for insurance proceeds and! r damages under or arising out of this coverage. These benefits do not apply if your Card privileges have been cancelled. However, insurance benefits will still apply for any benefit you were eligi for prior to the date that your Account is suspended or cancelled subs ect to the terms and conditions of coverage of your Cardmember Agreement Tram fer of rights or benefits: No rights or benefits provided under these insurance benefits may be assigned without the prior written consent of the Company. Misr presentation and Fraud: Coverage of the Insured will be void if, at any time, the Insured has concealed or misrepresented any material fact or circumstance concerning this coverage orthe subj thereof or the interest of the Insured herein, or in case of any fraud or false swearing by the Insured relating thereto. Co rage for an Insured will be void t, whether before or after a loss, the Policyholder or its subscribing organization(s) has concealed or misrepre-sented any material fact or circumstance concerning this verage or the subject thereof or the interest of the Insured therein, or in case of any fraud or false swearing by the Policyholder or its subscribing orgad-za-tion(s) relating hereto. Add! ion of New Insureds: All eligible persons will be automatically insured under this Policy. Examination Under Oath: It is a condition of this insurance that the Insured and the Policyholder, as often as may be reasonably required by the Company, will submit, and within its power cause other to submit, to examinations under oath and will produce for examination all writings, books of account, bills, invoices and other vouchers, or certified copies thereof If originals are lost, at such rea le time and place as may be designated by the Company or its representative, and will permit extracts and copies thereof to be made. No such examination under oath, exarr -nation of documents or any other act of the Company, its employees or representatives in connection with the investigation of any loss or claim will be deemed a waiter of arty defense and such acts all be deemed to have been made or done without prejudice to the Corrpanys liability. No B neft to Others: This coverage will in no way inure directly or indirectly lo the benefit of any insurer, person or organization or other bailee. --- - ----- --- Sub gation: It is a condition of this insurance that if the Company pays the Insured for a loss, it will require the Insured to assign and transfer any claim or right of action against any individual, firm or corpo lion for such loss to the Company or subrogate or hold in first all such rights to the extent of the amount paid. The Insured will agree to take action as requested by the Company to enforce such rights Upon payment by the Company to the Insured, the Insured agrees to direct enforcement of such rights as reasonably requested by the Company and to return to the Company any recovery to the e t payment of loss has been made by the Company. Arbit lion: In the event of a dispute under this policy, either the Com-pang or the Insured may make a writlon demand for arbitration. In that case, the Company and the Insured will each select an arb' . The two arbi-tra-tors will select a third. If they cannot agree within 15 days, either the Company or the Insured may request that the choice of arbitrator be submitted to the American Arbitration Assoc Mon. The arbitration will be held in the state of the Insureds principal residence, GL AL TRAVELER'S HOTLINE TERMS AND CONDITIONS The obal Traveler's Hotline provides Cardmembers and their families a wide range of free travel assistance benefits. It is operated by AXA Assistance USA, Inc. Visit Discovercard.oorn1ravel to learn more. Eligib lity. You must be a Cardmember whose Account is in good standing, the Cardmember's spouse or dependent child traveling with the Card ember or an Authorized User of an Account in good standing. Third arty Charges. Global Traveler's Hotfrne is not insurance, so you writ be responses for all third-party fees and expenses for services requested, such as professional or medical fees. Avalla llity of Services. Certain services may not be available in all areas. Call us at 1.600-DISCOVER (14 00-347-2663) for assistance or if you have questions aW a specific destination. Outside the U.S., call us collect at 1-801-902-3100. While AXA Assistance will make every reasonable effort to provide the services, neltherAXA Assistance nor Discover Bank or our respective affiliates will be liable 0 a service is riot provided or for any services that are provided by third parties. The services and these terns and conditions are subject to change without notice. ' i t ' h h 1 EXHIBIT "C" it .\ ?. uni raymenT vue t rccurT -Vumaer enema !r O/ c,Y I SC-2 r VII,R $11,703.70 $11,703.70 Enter Amount Enclosed Below CARD Payment ?Due Date November 17, 2009 Please make check payable to Discover Card. Minimum pa ment due includes a past due amount of $2,258.00. 22 SE 516 401 0003548 ' BETH SFENK 1851 IIALNUT BOTTOM RD CARIISLE PA 17015-7672 Will your payment get to us on time? Pay your bill online and your payment can be made to your account on the same day. Visit Discover.com/payments today. PO BOX 6103 ???rrr??rrrrr?r?rrfr?r??rr? CAROL STREAM IL 60197-6103 Address, e-noil or elephone change? Print change in space a Dove, or So h, Ni covercom. Print your e-mail address to " n ceive important Account information and special offers. OOOCOL9ii6458031180314117037000000001170370 Discover More Card Account Summary Closing Date: October 22, 2009 page 1 of 1 A_count number ending i n 6769 Previous Balance $11,703.70 Pryrnent Due Cate November 17, 2009 Payments And Credits 0.00 fvinimumPcrynertDue $11,703.70 Purchases + 0.00 C?eclit Limit $9,000.00 Cash Advances + 0.00 C eclit Available $0.00 Balance Transfers + 0 00 Cash Credit Limit $0.00 Finance Charges . + 0.00 Cjs T Credil Available $0.00 _ New Balance = $11,703.70 Cashb ack Bonuse Opening Cashback Bonus Balance $ 0.00 New Cashback Bonus This Period + 0.00 Cashback Bonus Balance $ 0.00 C]shbackBonrA>-Anniversary -------- - ---- ----- - ----- --. -- - - ------- -- -- ---- --- Dote: November 22 F'?OW Can We IMe Help YOU? I . Visit Discover.com to pay your bill for no cost, view your p latest Account information, earn and redeem rewards and more It's your choice - 3 ways to help 2. Call 1.800-DISCOVER (347.2683) for fast, easy self-service PV3ase have your Discover Card available. options or to speak with a Customer Service Account Manager Fcr JDD (ase,istance For hearing impaired) see reverse side 3. Write us at Discover Card, PO Box 30943, Salt Lake City, UT 84130 Finance Charge Summary Nominal Average Daily ANNUAL ANNUAL Daily Periodic PERCENTAGE PERCENTAGE Balances Rates RATES RATES current billing period: 22 days Purchases $0 0.08216% 29.99% V 29.99% Cc,ish Advances $0 0.08216% 29.99% V 29.99% The rates that apply to your Account are either fixed (F) or they may vary (V) as noted above. Transaction Periodic Fee FINANCE FINANCE CHARGES CHARGES $0 $0 $0 $0