HomeMy WebLinkAbout10-5562Stock & Grimes, LLP
BY: FRANCIS R. GRIMES, ESQUIRE
I.D.# 62404
804 West Avenue
Jenkintown, PA 19046
(215) 576-1900
DISCOVER BANK
12 Reads Way
New Castle, DE 19720
VS.
RICHARD M. LAKE
5166 Ravenwood Road
Mechanicsburg, PA 17055-4836
CIVIL ACTION COMPLAINT
Attorney for Plaintiff
t0- 550Q GvtlTerM
COURT OF COMMON PLEAS
CUMBERLAND COUNTY, A,
CIVIL ACTION - LAW C?
t.
-0
t
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
*QA, 00 Pd A)W
?-? acs?
0-1
STOCK & GRIMES, LLP
BY: FRANCIS X. GRIMES, ESQUIRE
I.D. #62404
804 West Avenue
Jenkintown, PA 19046
(215) 576-1900
DISCOVER BANK
12 Reads Way
New Castle, DE 19720
Plaintiff
VS.
RICHARD M. LAKE
5166 Ravenwood Road
Mechanicsburg, A 17055-4836
Defendant(s)
Attorney for Plaintiff
COURT OF COMMON PLEAS
CUMBERLAND COUNTY
CIVIL ACTION-LAW
No.
CIVIL ACTION COMPLAINT
COUNTI
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.
5. The Defendant, Richard M. Lake, 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 "A" 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.
9. The Defendant ratified the terms and conditions of the Cardmember Agreement each
and every time 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 May 19, 2008. As a result thereof, the Defendant is in breach
of their obligation to the Plaintiff; 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 "B" a copy of the monthly statement for the
period ending December 16, 2008 issued to the Defendant.
12. The present outstanding balance which is due on the credit account is $9,990.66;
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 may incur
additional damages for attorney fees and costs and request payment of the same by the
Defendant pursuant to the terms of the Cardmember Agreement and/or applicable law.
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, Richard M. Lake, in the sum of $12,288.51 ($9,990.66 Principal plus reasonable
attorney fees of $2,297.85), 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 extension of credit understanding
as above, the Defendant has been unjustly enriched in the amount of $9,990.66, to Plaintiff's
detriment.
WHEREFORE, Plaintiff, Discover Bank, demands Judgment against the Defendant,
Richard M. Lake, in the sum of $9,990.66, plus reasonable attorney fees, costs and pre judgment
interest in accordance with law.
DATE:
S X. GRIMES, ESQUIRE
for Plaintiff
VERIFICATION
The undersigned, FRANCIS X. GRIMES, 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 Plaintiff..
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. § 49Q4, relating to unworn falsification to
authorities.
Exhibit "A"
DISCOVER'
CARD
YOUR DISCOVER! CARD
ACCOUNT
CARDMEMBER 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 "Right to Reject Arbitration"
section at page 12.
PRIVACY 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.
BILLING RIGHTS ..........................Pages 16-17
Important information about your rights and our
responsibilities under the Fair Credit Billing Act
DESCRIPTION OF COVERAGE ...............Pages 17-25
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.
GLOBAL TRAVELER'S HOTLINE ..................Page 25
The terms and conditions of this free travel assistance
benefit.
02008 Discover Bank, Member FDIC TI-20A.0508
I 08D000_05BOK_TL20A0508.indd 1-2 3127108 2:12:01 PM
CARDMEMBER AGREEMENT
Please read this Agreement carefully before using your Discovers Card
Account It contains the terms and conditions of your Account, some of
which may have changed from earlier materials provided to you. In the
event of any differences, this Agreement shall control. We respect your
privacyc See the Privacy section on page 9 and our Privacy Policy for
additional information. The Arbitration of Disputes section on page 10
includes a waiver of a number of rights, including the 'ht to a jury trial.
The Right to Reject Arbitration section on page 12 des2es the procedure
you must follow if you desire to reject the Arbitration of Disputes section.
DEFINITIONS .................................................... 2
USING YOUR ACCOUNT .......................................... 2
Your Acceptance of this Agreement ........................... 2
Permitted Uses of Your Account ............................... 2
Prohibited Uses of Your Account ............................... 2
Purchases and Cash Advances in Foreign Currencies ...:.......... 3
Cash Advances ...............................................3
Balance Transfers ............................................ 3
Credit Authorizations ........................................ 3
Authorized Users ............................................ 3
Unauthorized Use ........................................... 3
Your Credit Lines ............................................ 4
MAKING PAYMENTS ............................................. 4
Promise to Pay .............................................. 4
Monthly Billing Statement .................................... 4
Monthly Payment Options ................... ........ .. 4
Automatic Billing Arrangements ............................... 4
How We Apply Payments ...................................... 5
Minimum Monthly Payment .................................. 5
Skip-A•Payment Offers ....................................... 5
Credit Balances .............................................. 5
FINANCE CHARGES ...............................................5
How We Calculate Periodic Finance Charges ...................... 5
How We Calculate Your Balances .............................. 6
Two-Cycle Average Daily Balance Method ....................... 6
Variable or fixed interest Rates ................................ 6
Default Rates ............................................... 7
Cash Advance Transaction Fee Finance Charges .............. 7
Balance Transfer Transaction Fee Finance Charges ................ 7
Minimum Finance Charge ..................................... 8
FEES ........................................................... 8
Late Fee .................................................... 8
Overlimit Fee ................................................8
Returned Payment Fee ....................................... 8
Returned Discover Card Check Fee ............................. 8
Pay-By-Phone Fee .............................................8
Research Fee ................................................ 8
DEFAULT AND CANCELLATION .................................... 8
Types of Default ..............................................8
Consequences of Default .....................................
Cancellation ................................................ 9
9
PRIVACY AND OUR COMMUNICATIONS WITH YOU ................... 9
Our Privacy Policy .............................................9
Reporting to Credit Reporting Agencies ........................ 9
Our Communications with You ................................ 9
Releasing Information About Your Account ..................... 9
Electronic Notices to You .................................... 10
-1-
08D000_05B0K_TL20A0508Jndd 3-4 3127/08 2:12:01 PM
Notices - Changes to Your Information ........................
CLAIMS AND DISPUTES ...........
Merchant Disputes ...........................................
Claim Notices ...............................................
Arbitration of Disputes .......................................
Right to Reject Arbitration ....................................
LEGAL INTERPRETATION OF THIS AGREEMENT .......................
Severability .................................................
Compliance with Interest Rate Limitations ............... . . . .... .
Governing Law ..............................................
ASSIGNMENT OF ACCOUNT .......................................
CHANGES TO THIS AGREEMENT ...................................
DEFINITIONS
10
10
10
10
10
12
12
12
12
12
13
13
"Account" means your Discover Card Account.
"Authorized User" means any person whom you authorize to use your
Account or a Card, whether you notify us or not.
"Card" means any one or more Discover Cards issued to you or someone else
with your authorization.
"Pricing Schedule" means the document accompanying your Card and
listing the Finance Charge rates that apply to your Account. The Pricing
Schedule is part of this Agreement.
"Vile," "us" and "our" refer to Discover Bank, the issuer of your Discover
Card.
"You," "your" or "yours" refer to, in addition to you, the Cardmember, any
other person or persons who are also contractually liable under this
Agreement
USING YOUR ACCOUNT
Your Acceptance 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 Agreement, including the
Arbitration of Disputes section on page 10. You may, however, reject the
Arbitration of Disputes section as explained on page 12.
Permitted Uses of Your Account Your Account may be used for:
Purchases - to purchase or lease goods or services from participating
merchants by presenting your Card or Account number or by using
promotional checks, which we may furnish to you, in accordance with
such additional terms and conditions as we may offer from time to time.
- Cash Advances - to obtain cash advances from participating automated
teller machines, financial institutions or other locations, the purchase of
lottery tickets, racetrack wagers, vouchers redeemable for cash or for
casino chips, money orders, traveler's checks, savings bonds, foreign
currency and wire transfers, or by means of checks which we may fumish
to you, all in accordance with such additional terms and conditions as we
may offer from time to time.
- Balance Transfers - to transfer balances from other creditors or to make
other. transactions by means of balance transfer coupons or checks, in
accordance with such additional terms and conditions as we may offer
from time to time.
In addition, your Account may be used to guarantee reservations at
participating establishments. You will be liable for guaranteed reservations
that are not cancelled prior to the time specified by the establishment. Your
Account may be used for personal, family, household and charitable
purposes.
Prohibited Uses of Your Account Your Account may not be used to obtain
-2-
08D000-05BOK_TMA0508.indd 5-6
loans to purchase, carry or trade in securities, to pay any amount you owe
under this Agreement or for any transactions that are unlawful where you
reside or where you are physically located when you use the Account to
initiate the transaction ("Prohibited Transactions").
Purchases and Cash Advances in Foreign Currencies. We convert purchases
and cash advances made in a foreign currency to U.S. dollars. We use the
conversion rate used by Discover Network to process the transaction in
accordance with Discover Network's procedures. Currently, Discover
Network uses a government-mandated rate, a government-published rate
or the interbank exchange rate, depending on the country and currency.
Regardless of source, the rate used will be the rate in effect on the date
Discover Network processes the transaction or the prior business day,
depending on the time received. Transactions in China are converted at a
rate in effect on the date of the transaction.
Cash Advances. We may periodically offer you special rates on cash
advances for the time period specified in the offer, subject to the Default
Rates section, The offer may contain a Cash Advance Transaction Fee
Finance Charge for each cash advance. After the expiration of the special
rate, the standard Annual Percentage Rate for cash advances will apply.
Balance Transfers. We may periodically offer you the opportunity to make
balance transfers from other creditors or to make other transactions to your
Account by means of balance transfer coupons or checks. 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 to the Default Rates section 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 offer and as set forth in the
Pricing Schedule, if applicable. After the expiration of this time period, the
Annual Percentage Rate that applies for purchases will apply to transferred
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 for security
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.
Authorized 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 Card in that person's possession. You can notify us by
telephoning 1.800-DISCOVER (1.800-347-2683), or by writing Discover Card,
PO Box 30943, Sah Lake City, UT 84130-0943, None of your rights under this
Agreement (other than to pay amounts 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 not
obligated to give).
Unauthorized 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 permission, notify
us immediately. You can notify us by telephoning 1-800-DISCOVER
-3-
3/27/08 2:12:01 PM
(1-800-347-2683), 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 Account or a
Card and to comply with such procedures as we may require in connection
with our investigation.
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 that 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 you exceed your Account credit line, we
may request immediate payment of the amount by which you exceed your
Account credit line.
We may 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 your 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 payment that we receive. Your available
credit will not be increased by the amount of any credit balance.
MAKING 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 authorize or permit to
use your Account or a Card, even if you do not notify us that others are
using your Account or a Card. If you pay us in other than U.S. dollars, we
may refuse to accept the payment or charge your Account our cost to
convert your payment to U.S. dollars. All checks must be drawn on funds on
deposit in the U.S. You may not use a cash advance check, balance transfer
check 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 Account, each of you agrees to be liable individually 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 full" or with any other restrictive endorsement without losing
any of our rights under this Agreement
Monthly Billing Statement We will send you a billing statement after each
monthly billing period in which you have a debit or credit balance, unless
we waive our right to do so as permitted by law. The billing statement will
show all purchases, cash advances, balance transfers, Finance Charges 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 required Minimum
Payment Due may be higher than shown on your billing statement See the
Minimum Monthly Payment section on page 5.
Monthly 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 Minimum Payment Due as described in the Minimum 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 Account in accordance with those terms.
In addition, we reserve the right to change those terms without prior notice
as permitted by law.
Automatic Billing Arrangements. If your Account number and/or Card
-4-
08D000_05BOK_TL20A0508.indd 7-8
expiration date changes and our records indicate you have automatic billing
established with a merchant, we will attempt to provide your new Account
information to that merchant. To ensure uninterrupted billing, we
recommend thatyou verify the merchant has your new Account information.
You must contact the merchant directly if you do not wish to continue the
automatic billing arrangement
How We 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 applicable to the balance of each transaction category (as
referenced in the Finance Charges section), generally from lowest to highest
beginning with the balance subject to the lowest Annual Percentage Rate.
We then apply payments and credits to any new transactions using the
same method. However, we have the right to apply payments and credits to
balances with higher Annual Percentage Rates prior to balances with lower
Annual Percentage Rates, such as when there are two initial special rates
applicable to your Account and the lower Annual Percentage Rate will
expire before the higher Annual Percentage Rate.
Minimum Monthly Payment The Minimum Payment Due each month will
be the greater of.
the New Balance if it is less than $15;
e $15 if the New Balance is $15 or more; or
• any past due amount plus the greater of:
s 2% of the New Balance (excluding current Periodic Finance Charges,
Late and Overlimit Fees) rounded up to the nearest dollar or
a current Periodic Finance Charges plus Late and Overlimit Fees plus $15
(not to exceed 3% of the New Balance) rounded up to the nearest
dollar.
We may also include some or all the amount by which you exceed your
Account credit line. If more than 90% of your New Balance consists of
special-rate balance transfers, we may, at our discretion, increase 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
Minimum Payment Due. The Minimum Payment Due will never exceed the
New Balance. Paying the Minimum Payment Due may be insufficient to
bring your Account balance below your Account credit line and,
consequently, may not avoid the imposition of an additional Overlimit Fee
described in the Overlimit Fee section.
Skip-A-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 a 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 following 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 automatically refund credit balances greater than $ l that remain in
your Account after 6 months.
FINANCE CHARGES
How We Calculate Periodic Finance Charges. Periodic Finance Charges are
imposed on all transactions from the date the transaction is posted to your
Account until the date you pay your entire New Balance, by making
payments or receiving credits. However, if you paid the New Balance on
your previous billing statement by the Payment Due Date shown on that
statement and you pay the New Balance by the Payment Due Date on your
current billing statement, we will not impose Periodic Finance Charges on
new purchases, that is, purchases first appearing on the current statement.
-5-
3/27/08 2:12:02 PM
We call this the "grace period." There is no grace period on balance
transfers or cash advances.
We sort 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, purchases 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 compute 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
transaction category:
Average Daily Balance x days in billing period x Daily 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 Finance Charges for your
Account. The Average Daily 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 compute the Average 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 cycle. We compute the daily balance for each transaction
category on each day by first adding the following to the previous day's
daily balance: transactions made that day, fees charged that day and
Periodic Finance Charges accrued on the previous day's daily balance; and
by then subtracting any credits and payments that are applied against the
balance of the transaction category on that day. In calculating the daily
balance for the previous billing period, we consider the "previous day's
daily balance" to have been zero on the first day of the billing period. If a
transaction is posted to your Account after the close of the billing period in
which it occurs, we will treat the transaction as having occurred on the first
day of the billing period in which it is posted to your Account
All fees charged to your Account are added to the standard purchase
transaction category with the exception of Cash Advance Transaction Fee
Finance Charges which are added to the applicable cash advance
transaction 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 unpaid balance of the balance
transfer and the Balance Transfer Transaction Fee Finance Charges to the
standard purchase transaction category. However, if the special rate has
been terminated under the Default Rates section, we leave the unpaid
balance of the balance transfer and the Balance Transfer Transaction Fee
Finance Charges in the applicable balance transfer transaction category
until the special rate would have expired.
Two-Cycle Average Daily Balance Method. We use the two-cycle average
daily balance (including new transactions) method of calculating the
balance upon which we impose Periodic Finance Charges. This means if you
did not pay the New Balance shown on the billing statement you received
during the previous billing period by the Payment Due Date shown on that
statement, we will impose Periodic Finance Charges on new purchases that
first appeared on that billing statement, as well as new purchases that first
appear on the current billing statement, unless we already imposed Periodic
Finance Charges on the purchases on your previous billing statement.
Variable or Fixed Interest Rates. The Daily Periodic Rate and corresponding
.6-
I 9-10
Annual Percentage Rate that apply to each transaction category are either
fixed rates or variable rates as set forth in your Pricing Schedule or in any
special offers you receive from us. The Daily Periodic Rate is 1365th of the
corresponding Annual Percentage Rate. Variable Annual Percentage Rates
are determined by adding a specified number of percentage points to the
Prime Rate. This is shown on the Pricing Schedule as "Prime + (percentage
points)." For purposes of this Agreement, the Prime Rate is the highest rate
of interest listed as the "prime rate" in the Money Rates section of The Wall
Street Journal on the last business day of the month. The Prime Rate is
merely a pricing index and does not represent the lowest or best interest
rate available to a borrower at any bank at any given time. If you have a
variable rate, your Annual Percentage Rate will increase or decrease when
the Prime Rate changes. 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 Prime Rate. An increase in the Annual Percentage Rate may
increase your Minimum Payment Due.
Default Rates. Each time you do not make a required payment on time and
each time you exceed your Account credit line twice in a twelve month
period, we will increase the standard ANNUAL PERCENTAGE RATES for
purchases and cash advances to fixed rates, up to a maximum of 30.99%
(the "Default Rates"). Any special rates on purchases, balance transfers or
cash advances will end and a Default Rate will apply. We will base your
Default Rates on factors such as:
• your current purchase APR
• your payment history with us
• your payment history with other lenders
Any increased rate and change in type will apply beginning with the first
day of the billing period in which (l) we did not receive at least the
Minimum Payment Due by the Payment Due Date or (ii) you exceeded your
Account credit line 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 Rates section and, for any nine
consecutive billing periods you pay at least the Minimum Payment Due, if
any, by the Payment Due Date, then your Annual Percentage Rate for your
new purchases will be reduced and your Annual Percentage Rate for your
existing purchase balance may be reduced. Any reduced Annual Percentage
Rates will apply beginning with the first day of your tenth billing period.
Cash Advance Transaction Fee Finance Charges. Unless otherwise specified
in a cash advance offer, we will charge you a Cash Advance Transaction Fee
Finance Charge of 3% of the amount of each new cash advance with a
minimum Cash Advance Transaction Fee FINANCE CHARGE of $5 and no
maximum. The imposition of Cash Advance Transaction Fee Finance Charges
may result in an Annual Percentage Rate for cash advances that is higher
than the nominal Annual Percentage Rate. All forms of cash advances,
including the use of Discover Card checks, regardless of the purpose for
which used, are subject to Cash Advance Transaction Fee Finance Charges.
To obtain the total Finance Charge on cash advances for each billing period,
we add any Cash Advance Transaction Fee Finance Charges for the billing
period charged under this section to any Periodic Finance Charges
calculated under the Periodic Finance Charges section for each cash advance
transaction category and add up these amounts.
Balance Transfer Transaction Fee Finance Charges. If the balance transfer
offer you receive contains a Balance Transfer Transaction Fee Finance
Charge, we will charge you a Balance Transfer Transaction 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
-7-
3/27/08 2:12:02 PM I
with the offer you received 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 Percentage
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 Transfer Transaction Fee Finance
Charges calculated under the Periodic Finance Charges section for each
balance transfer transaction category and add up these amounts.
Minimum Finance Charge. We will charge you a minimum FINANCE
CHARGE of $.50 for any billing pperiod in which some FINANCE CHARGE of
less than $.50 would otherwise be imposed.
FEES
Late Fee. We will charge you a Late Fee if 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 for which
we did not receive timely payment. If the sum is $250 or less, the fee is $19;
if it is greater than $250, the•fee is $39.
Ovediml Fee. We will charge you an Overlimit 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 line due to the posting of Finance Charges or
fees to your Account. The amount of the Overlimit 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. If
the sum is equal to or less than $500 and you exceed your credit line, the
Overlimit Fee is $15. If the sum is greater than $500 and you exceed your
credit line, the Overlimit Fee is $39.
Returned Payment Fee. We will charge you a Returned Payment Fee of $35
each time you pay us with a check or other instrument that is returned
unpaid. This fee will also apply if a debit transaction to a deposit 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 if it is paid upon resubmission.
Returned 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, promotional purchase check, or
other promotional check.
Pay-By-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 Pay-By-Phone Fee of $10
for each such transfer or payment.
Research 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 error.
DEFAULT AND CANCELLATION
lypes 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 obligations to us; if
you are declared incompetent by a court or if 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, including failing to make a required payment
when due, exceeding your Account credit line or using your Card or
-8-
I 11.12
Account for a Prohibited Transaction; or if you fail to make a required
payment when due on any other account you have with us.
Consequences 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 or employ an attorney
to represent us with regard to recovery of money that you owe us, we may
charge you reasonable attorneys fees and court or other collection costs as
permitted by law and as actually incurred by us, including fees and costs in
connection with any appeal. We may delay enforcing or not enforce any of
our rights under this Agreement without losing or waiving any of them.
Cancellation. 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 telephoning 1.800-DISCOVER
(14800-347-2683), or by writing Discover Card, PO Box 30943, Sal Lake City
UT 84130-0943. Of course, you will still be responsible to pay any amount
you owe us according to the terms of this Agreement. If your Account is a
? oint Account, either Cardmember may cancel the Account, but you will
oth remain responsible to pay any amount owed to us according to the
terms 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 date shown on the face of a Card) without notice. You must
return any Card or unused checks to us upon request.
PRIVACY 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 information
about you and your Account. Our Privacy Policy includes a summary of the
personal information we collect, when it may be shared with others, how
we safeguard the confidentiality and security of information and the steps
you may take to limit our sharing of such information with others. Please
read it carefully as it is part of your Cardmember Agreement.
Reporting to Credit Reporting Agencies. As indicated in our Privacy Policy,
we may report to credit reporting agencies and other creditors the status
and payment history of your Account, including negative 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 believe that our report of your Account status
is inaccurate or incomplete, please write us at the following address:
Discover Card, PO Box 15316, Wilmington, DE 19850-5316. Please include
your name, address, home telephone number and Account number.
Our Communications with You. Our personnel may listen to or record
telephone calls between you and our representatives without additional
notice to you as permitted by law. We may use any medium, 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 Account or offer you products or services that
may be of value to you. If you prefer not to be contacted in one or more of
these ways, telephone us at 1410DISCOVER (1.800-347.2683) or write to us
at Discover Card, PO Box 15354, Wilmington, DE 19850.
Releasing Information About Your Account We provide various methods by
which you can obtain information about your Account. We will only release
such information to you, any Authorized User that our records indicate is an
authorized buyer on your Account and any other person with your prior
ermission, in addition to as provided in our Privacy Policy or as required by
Paw. Our security measures cannot insure against unauthorized inquiries.
You agree that we will not be responsible for the release of information to
anyone who, even if without your authorization or permission, has gained
-9-
3/27/08 2:12:02 PM
possession of a Card or has learned other identifying characteristics about
you such as your personal identification number, Account number or social
security number.
Electronic Notices to You. We may offer you the opportunity to receive
certain notices from us electronically rather than through the mail,
including monthly billing statements and change of terms notices. The
terms 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 or telephone number within 15 days. You can notify us by
telephoning 1-800-DISCOVER (1-800-347.2683) or by writing Discover@ Card,
PO Box 30943, Salt Lake City UT 84130-0943. If your Account is a Joint
Account, any notice we mail to an address you have provided for the
Account will serve as notice to both Cardmembers.
CLAIMS AND DISPUTES
Merchant 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 provide your purchase to your satisfaction 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 and/or any
third party for the credited amount. Upon our request, you agree to
provide us with written evidence of such assignment.
Claim Notices. 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 enforce-
ability of the Agreement or any prior agreement, before initiating, Joining
or participating in any judicial or arbitration proceeding, as either an
individual litigant or member of a class ("Proceeding"), 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 of 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 involving our parent
corporation, subsidiaries, affiliates (including, without limitation, DFS
Services LLC), predecessors, successors, assigns, as well as the officers,
directors and employees of each of these entities. Any Claim Notice 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") or to you at your address appearing in our records or, if you are
represented by counsel, to your attorney at your attorney's office.
Arbitration of Disputes. Agreement to arbitrate. In the event of any past,
present or future claim or dispute (whether based upon contract, tort,
statute, common law or equity) between you and us arising from or relating
to your Account, anyy prior account you have had with us, your application,
the relationships which result from your Account or the enforceability or
scope of this arbitration provision, of the Agreement or of any 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 SHALL 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 RIGHTS WILL BE LIMITED. NEITHER YOU NOR
WE SHALL BE ENTITLED TO JOIN OR CONSOLIDATE CLAIMS IN ARBITRATION
BY OR AGAINST OTHER CARDMEMBERS WITH RESPECT TO OTHER
ACCOUNTS, OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS AS A
-10-
REPRESENTATIVE OR MEMBER OF A CLASS OR IN A PRIVATE ATTORNEY
GENERAL CAPACITY ("Class Action Waiver").
Notwithstanding anything else to the contrary in this arbitration provision,
only a court, and not an arbitrator, shall determine 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 constitute 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 such action is transferred, removed or appealed to a different court
Governing Law and Rules. Your Account involves interstate commerce and
this provision shall be governed by the Federal Arbitration Act (FAA). The
arbitration shall be conducted, at the option of whoever files the
arbitration 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 procedures, to file a
claim or for other information, contact AAA at 335 Madison Ave., Floor 10,
New York, NY 10017-5905, www.adrorg (phone 1-800-778-7879) or NAF at
PO Box 50191, Minneapolis, MN 55405 (phone 1-800,474-2371). No other
arbitration forum will be permitted, except as agreed to pursuant to either
the Changes to this Agreement section or a writing signed by both parties.
Unless consented to by all parties, no arbitration may be administered by
any administrator that has any formal or informal policy, rule or procedure
that is inconsistent with or purports to override the terms of this section. 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 claims with respect to
which you would not otherwise be entitled to recover your arbitration
filing, administrative and hearing fees, reasonable attorneys' fees and/or
other arbitration costs, we will be responsible for paying or reimbursing
such costs and fees if awarded by the arbitrator.
Fees and Costs. At your written request, we will advance any arbitration
filing, administrative and hearing fees which you would be required to
pay to pursue a claim or dispute as a result of our electing to arbitrate
that claim or dispute. Send requests to Discover Card, PO Box 15192,
Wilmington, DE 19886-1020. The arbitrator will decide who will ultimately
be responsible for paying those fees. You will only be responsible 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 costs" had the action proceeded in court In no
event will you be required to pay any fees or costs incurred by us in
connection with an arbitration proceeding where such a payment or
reimbursement is prohibited by applicable law.
Hearings 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 consistent with the FAA and
applicable statutes of limitations and shall honor claims of privilege
recognized at law and shall be authorized to award all remedies permitted
by the substantive laws that would apply if the action were pending in
court If requested by any party, the arbitrator shall write an opinion
containing the reasons for the award. The arbitrator's decision will be final
and binding except for any appeal rights under the FAA and except that if
the amount in controversy exceeds 5100,000, any party may appeal the
award within 30 days to a three-arbitrator panel, which shall review the
award de novo. Unless applicable law provides otherwise, the appealing
party will pay the cost of the appeal, regardless of its outcome. However,
-11-
08D000-05BOK_TL20A0508.indd 13-14 3/27/08 2:12:03 PM
we will consider in good faith any reasonable request for us to bear the fees
charged by the arbitration administrator and the arbitrators in connection
with the appeal. Judgment upon any award by the arbitrator may be
enforced in any court having jurisdiction.
Other Beneficiaries of this Provision. Our rights and obligations under this
arbitration provision shall inure to the benefit of and be binding upon our
parent corporations, subsidiaries, affiliates (including, without limitation,
DFS Services LLQ predecessors, successors, assigns, as well as the officers,
directors and employees of each of these entities, and will also inure to the
benefit of any third party named as a co-defendant with us or with any of
the foregoing in a claim which is sub1'eck to this arbitration provision. Your
rights and obligations under this arbitration provision shall inure to the
benefit of and be binding upon all persons contractually liable under this
Agreement and all Authorized Users of the Account.
Survival of this Provision. This arbitration provision shall survive termination
of your Account as well as voluntary payment in full by you, any legal
proceedings by us to collect a debt owed by you, any bankruptcy by you and
any sale by us of your Account
Right to Reject Arbitration. 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, PO Box 30938, Sah Lake
City, UT 84130-0938. If You were previously subject to arbitration with
respect to any account with us, this right to reject arbitration will not apply
to you. Your rejection notice must include your name, address, telephone
number, Account number and signature and must not be sent with any
other correspondence. Calling us to indicate that you reject the Arbitration
of Disputes section or sending a rejection notice in a manner or format that
does not comply with all applicable requirements is insufficient notice. In
order to process your notice, we require that the notice be provided by you
directly and not through a third party. Rejection of arbitration will not
affect your other rights or responsibilities under this Agreement or your
obligation to arbitrate disputes under any other account as to which you
and we have agreed to arbitrate disputes. If you do not send a rejection
notice, you will be obligated by 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
Severability. 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 is 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.
Compliance with Interest Rate Limitations. We intend that this Agreement
will comply with 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 determined
that, but for this section, the Finance Charges or other charges under this
Agreement would exceed the maximum lawful amount, the Finance
Charges and other charges will be reduced to 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.
Governing 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.
12-
I 15-16
ASSIGNMENT OF ACCOUNT
We may sell, assign or transfer your Account or any portion thereof without
notice to you. You may not sell, assign or transfer your Account without first
obtaining our prior written consent.
CHANGES TO THIS AGREEMENT
We may change any term or park 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 assessed or add any new
tern or part to this Agreement 0 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 charge to 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 opportunr?'tyy to reject some of the changes, and if you
do, you must notify us in writ(ng 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 dosed 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 Account
after the effective date of the change will be deemed acceptance of the
new terms as of such effective date, even if you previously notified us that
you did not agree to the change.
We may also 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 terms of the product service or benefit
PRIVACY POLICY
We are 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, k is not necessary to do so again
unless you decide to change your preferences.
We Respect Your Privacy
Our mission 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 guard.
ing information about you and your Account. We want to assure you that
we have taken steps, and will continue to take steps, to safeguard that
information.
This Privacy Policy describes our efforts to meet these objectives. it includes
a summary of the following important information:
• A listing of the personal information we collect;
• The circumstances in which we may share information with others;
• The ways we safeguard the confidentiality and security of information;
and
• The steps you may take to limit our sharing of such information with
others. See Section 4 for complete details.
Please read our Privacy Policy carefully. It will help you understand how we
collect and share information.
1. What Personal Information Do We Collect?
To serve you better and manage our business, it is important that we collect
and maintain accurate personal information about you. We obtain this
information from applications and other forms you submit to us, from your
dealings with us and others, from consumer reporting agencies and from
-13-
3/27/08 2:12:03 PM
other sources, such as our Web sites. For example:
• We may obtain information such as your name, address and date of birth
from applications and other forms you submit to us.
a We may 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 may obtain information such as the balances of your loans with other
lenders and your payment history with others from consumer reporting
agencies.
• We may obtain information such as your Internet service provider, your
e-mail address, your computer's operating system and Web browser, your
Web site use and your product and service preferences from your visits to
Web sites.
1. Is Personal Information Shared with Others?
We limit the sharing of information with others. Many of the offers you
receive for products and services are provided directly to you from us. For
example, a retailer that accepts the Discovers Card may come to 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 Cardmembers who may be interested in the
offer based on certain characteristics. We will send the offer directly to
those Cardmembers on behalf of the retailer by, for example, including an
insert in their monthly billing statement or mailing the offer ourselves. We
control the information used to make the offer; we do not share the list or
any information about our Cardmembers with the retailer. However, please
understand that if you do receive this type of offer from us and choose to
take advantage of it, the retailer may then learn information about you
because only Cardmembers with certain characteristics received the offer.
There are, however, circumstances in which we may share the information
we collect about you, as described in Section 1, with other companies in
order to provide you with access to products and services and to service your
Account effectively, as detailed below. We require these companies to
adhere to our privacy standards and to use this information only for the
limited purpose for which it was shared. We do not allow them to disclose
it to others without our prior approval.
a. Sharing Personal Information with Our Corporate Family
our corporate famil offers a variety of products and services that can help
you manage your finances. In order to provide you with access to these
products and services, we may share the information we collect 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 processing services.
b. Sharing Personal Information with Non-Affiliated Parties for
Marketing Purposes
we may share the information we collect about you, as described in Section
1, with non-affiliated third parties, including those that accept the Discover
Card, in order to provide you with access to products and services offered
directly by these companies that may be of value to you, These companies
include financial seance providers, such as insurance companies, and non-
financial companies, such as retailers.
c. Sharing Personal Information with Others
We may share the information we collect about you, as described in Section
1, with companies that perform support or marketing services on our
behalf, such as mailing, market research and data processing; other
-14-
I 08D000_05BOK_TL20A0508.indd 17-18
financial institutions with which we have joint marketing agreements; or
companies that are our partners for cobrand credit card programs or
reward programs. We may also share such information as permitted by
law.
3. How Do We Protect the Confidentiality, Security and Integrity of
Information about You?
We maintain 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 important 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, Sah Lake City, UT 84130-
0943 so that we can update this information.
4. Now Can You Limit Sharing of Information About You?
We respect 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 Section 1, with
non-affiliated third parties. You also have the option to tell us not to share
the information we collect about you, as described in Section 1, with
companies in our corporate family. If you indicate a preference 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 resources or manage your
finances.
To indicate your preferences, please call us at 1400-225.5202 or write to us
at Discover Card, PO Box 30951, Salt Lake City LR 84130-0961. If you have
previously notified us about your privacy 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
number(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 provide us with your
preferences for each credit card account you have with us.
You may 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 share this information except as permitted by law. or example,
federal law permits us to share information about you with consumer
reporting agencies, service providers and financial institutions with which
we have joint marketing agreements. If you are a new Cardmember, we will
not share any information about you, except as permitted by law, for thirty
days after we provide this Policyto you in order to give you an opportunity
to inform us about your preferences. If you are an existing Cardmember,
please understand that you may continue to receive marketing offers
directly from other companies that were already in production prior to the
processing of your request.
This Privacy Policy is provided to the primary Cardmember listed on the
Account. However, any joint Cardmember has the right to notify 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 notification supersedes all previously issued Privacy
-15-
3/27/08 2:12:03 PM
Policies. We reserve the right to amend this Privacy Policy from time to time
and we will notify you if we do so.
This Privacy 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
Cards, including the Wallet Protection card registration service (with the
exception of any information registered in connection with the service,
which will not be shared). It is part of your Cardmember Agreement and
provides a further explanation of how we collect and share information.
You may have other rights under state laws that apply to this information.
Please note that you will also receive privacy notices for other credit card
accounts you have with us, as well as other financial products 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.
Vermont 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 collect about you with
non-affiliated third parties or companies in our corporate family unless you
call us at 14"SCOVER (1-800-347-2683) and authorize us to do so.
California 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 information we
collect about you with non-affiliated third parties while you are a resident
of California.
Your Billing Rights
KEEP THIS NOTICE FOR FUTURE USE
This notice contains important information about your rights and our
responsibilities under the Fair Credit Billing Act.
1. Notify Us in Case of Errors or Questions About Your Bill
If you think 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 soon as possible.
We must hear from you no later than 60 days after we 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 name and Account number.
• your dollar amount of the suspected error.
• describe 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 have authorized us to pay your credit card bill automatically from
your savings or checking 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 the automatic payment is scheduled to occur.
2. Your Rights and Our Responsibilities After We Receive Your
Written Notice
We must acknowledge your letter within 30 days, unless we have corrected
the error by then. Within 90 days, we must either correct the error or
explain why we believe the bill was correct.
-16-
After we receive your letter, we cannot try to collect any amount you
question or report you as delinquent. We can continue to bill you for the
amount you question, including finance charges and we can apply any
unpaid amount against your Account credit limit. You do not have to pay
any questioned amount while we are investigating, but you are still
obligated to pay the parts of your bill that are not in question.
If we find 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 will have to
make up an missed payments on the questioned amount. In either case,
we will sendyyou a statement of the amount you owe and the date that it
is due.
If you fail to pay the amount that we think you owe, we may report you as
delinqquent. 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 yyour bill, 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 been settled between 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 have 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 with the merchant, you may have the right not to pay the
remaining amount due on the goods or services. There are two limitations
on this right:
(a) you must 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 purchase price must have been more than $50.
These limitations do not apply if we own or operate the merchant or if we
mailed you the advertisement for the goods or services.
4. Purchases Made with Chedrs 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, if you have a problem with the quality 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 withhold payment of the amount due.
DESCRIPTION OF COVERAGE
SCHEDULED AIR TRAVEL ACCIDENT INSURANCE
DiscoverO Cardmembers are provided with $500,000 Scheduled Air Travel
Accident Insurance.* You, your Spouse, Domestic Partner or eligible
Dependent Children for whom a ticket was purchased on your 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 Dependent Children for whom a ticket was
purchased on your Card are riding as a passenger in or entering, exiting or
being struck by a Scheduled Aircraft or a conveyance operated by a military
transport service or riding as a passenger in or entering or exiting any
conveyance licensed to carry the public for a fee and while traveling directly
to or from the airport immediately preceding the departure of a Scheduled
Aircraft on which the Insured Person has purchased passage and immediately
-17-
08D000-05BOK_TL20AO508.indd 19-20 3/27/08 2:12:03 PM
following the arrival of a Schedule Aircraft on which the Insured Person was
a passenger.
*Coverage is underwritten by Federal Insurance Company, a member
insurer of the Chubb Group of Insurance Companies. Certain limitations and
exclusions apply.
PLAN FEATURES
THE BENEFITS: The full Benefit Amount ($500,000) is payable for Accidental
Loss of Life. The Loss must occur within one year of the Accident.
MAXIMUM 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 limit of insurance ($20,000,000) per Accident If an Accident
results in Benefit Amounts becoming payable, which when totaled, exceed
the applicable limit of insurance shown above, the maximum limit of
insurance will be divided proportionally 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 Company's liability
for all such Losses will be limited to a maximum limit of insurance equal to
two times the applicable Benefit Amount for Loss of Life. Benefits will be
proportionately divided among the Insured Persons up to the maximum
limit of insurance.
DEFINITIONS:
Accident or Accidental means a sudden, unforeseen and unexpected event
happening by chance, and includes unavoidable exposure to elements
arising from a covered Hazard.
Acddentel Bodily Ipju ) 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.
Accoups means a Card account.
Benefit Amount means the Loss amount at the time the entire cost of the
passenger fare is charged to an Account.
.Ad means the Discover Card.
Ca r h le means the holder of the Card whose name appears on the
credit card.
Comanv means the federal Insurance Company.
Covered Trio 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 Insured Person's Account.
L hill or Children means those children, including adopted
chi dren and those children placed for adoption, who are primarily
dependent upon the Insured Person for maintenance and support 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 incapable
of self support; or (3) under the age of 25 and classified as full-time students
at an institution of higher learning.
Domestic Partner means a person who: (1) is at least 18 years of age and
competent to enter into a contract; (2) is not related to the Insured Person
by blood; (3) has exclusively lived with the Insured Person for at least one
year prior to the date of enrollment, (4) is not legally married or separated;
and (5) as of the date of enrollment, has with the Insured Person at least
two of the following financial arrangements: (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 motor vehicle lease; or (d) a joint credit card
account with a financial institution. Neither the Insured Person nor the
Domestic Partner can be married to, nor in a civil union with, anyone else.
-18-
08D000_05BOK_TL20A0508.indd 21-22
Hazard 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 Description of
Coverage.
Insured Person means all Cardmembers, their spouses, Domestic Partners
and Dependent Children, as well as authorized users of the Account.
Loss means the Loss of Life.
Loss of Life means death, including clinical death determined by the local
governing medical authorities.
Poli older means DFS Services LLC, the entity responsible for the payment
of premium.
Scheduled Aircraft means an aircraft owned and/or operated by a
Scheduled Airline.
Scheduled Airline means an airline which is either of United States registry
and certified by the United States government to carry passengers on a
regularly scheduled basis or of foreign register and approved by the United
States government and the appropriate foreign authority.
War means hostilities following a declaration of War by a government
authority. If there is no declaration of War, then (1) armed, open and
continuous hostilities between two countries or (2) armed, open and
continuous hostilities between two factions, each in control of territory, or
claiming jurisdiction over the site of the area of hostility.
DISAPPEARANCE BENEFITS: If the Insured Person has not been found within
one year of the disappearance, stranding, sinking, wrecking or breakdown
of any Scheduled Aircraft or conveyance in which the Insured Person was
covered as an occupant, it will be assumed, subject to all other terms of the
policy, that the Insured Person has suffered Loss of Life covered under this
policy.
EXPOSURE BENEFITS: Accident includes unavoidable exposure to elements
arising from a covered Hazard.
ELIGIBILITY. This insurance plan is provided to Insured Persons automatically
when the entire cost of the passenger fare(s) on a Scheduled Airline is
charged to the Cardmember's Account while the insurance is effective. R is
not necessary for you to notify the Policyholder or the Company when
Scheduled Airline tickets are purchased.
EFFECTIVE DATES: Your insurance under this insurance plan is effective on
the later of: 1) April 1, 2007; or 2) the date you become an eligible
Cardmember. Your insurance coverage under this insurance 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 cost of the
insurance.
THE BENEFICAIM. The Loss of Life benefit will be paid to the beneficiaryry
designated by you. If no such designation has been made, that benefit M7
be paid to the first surviving beneficiarryy in the following 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 change your
beneficiary, you may request a beneficiary designation form by writing to
the plan administrator at: The Direct Marketing Group, Inc., 13265 Bedford
Avenue, Omaha, NE 68164 or at Beneficiaryrequest@The DirectMG.com.
EXCLUSIONS: 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 Policyholder or any aircraft
-19-
3127108 2:12:04 PM
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 not apply to passengers who
temporarily perform pilot or crewfunctions in a life threatening emergency);
(3) emotional trauma, mental or physical illness, disease, pregnancy,
childbirth or miscarriage, bacterial or viral infection, or bodily malfunctions
(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 self-inflicted; 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 90 days will not 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 Company a written description
of the Loss.
CLAIM PROOF OF LOSS: Complete proof of Loss must be given to Company
within 90 days after the date of Loss, or as soon as reasonably possible.
Failure to give complete proof of Loss within these 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.
CLAIM PAYMENT: 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 beneficiary have complied
with all the terms of the policy.
ARBITRATION: In the event of a dispute under this policy, either the Com-
pany or the Insured Person may make a written demand for arbitration. In
that case, the Company and the Insured Person will each select an arbitra-
tor. 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 Arbitration Association. The
arbitration will be held in the state of the Insured Person's principal
residence.
IF YOU HAVE ANY CLAIM RELATED QUESTIONS, PLEASE CALL THE CLAIMS
SERVICE CENTER AT 1400-CLAIMS-0 (1400.2524670).
You can also go to the Company Website (www.chubb.coml, click
on Report a Loss, select Accident, Benefits and Life claims, select the
approppriate 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 23327-4700
Fax Number. 1-800-300-2538
As a handy 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 principal provisions of the
-20-
08D000_05BOK_TL20A0508Jndd 23-24
insurance while in effect. Complete policy provisions are contained in the
Master Policy, which can be obtained from the Policyholder:
Policy # 9906-18-06
Policy Underwritten By Plan Administrator
Federal Insurance Company The Direct Marketing Group, Inc.
a member insurer of the 13265 Bedford Avenue
Chubb Group of Insurance Companies Omaha, NE 68164
15 Mountain View Road, PO Box 1615
Warren, NJ 07061-1651
DESCRIPTION OF COVERAGE
SECONDARY RENTAL CAR COLLISION COVERAGE
Discover@ 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 circumstances 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 Federal Insurance Company Policy # 9906.17-63
(the "Policy").
DEFINITIONS.
Account means a Card account.
Actual Cash V?ue means the cost to repair or replace the Rented
Automobile at the time of loss, less depreciation.
Cardmembe means the holder of the Card whose name appears on the
credit card.
Cdr means the Discover Card.
Collision Damage 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 obJ'ects, fire, theft
or larceny, explosion, earthquake, windstorm, hail, water, flood, malicious
mischief or vandalism, riot or civil commotion.
Comanv means the Federal Insurance Company,
WUMd means Cardmembers and authorized users of the Account.
. ' older means DFS Services LLC, the entity responsible for the payment
of premium.
Rental Aggnn means a commercial automobile rental company licensed
under the laws of the applicable jurisdiction.
Rented Automobile means a four-wheeled private passenger type motor
vehicle or a mini-van manufactured and designed to transport a maximum
of seven passengers and used excursively to carry passengers. A Rented
Automobile must be designed for travel on public roads and rented from
Rental Agency.
TO GET COVERAGE:
The Collision 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.
v You must decline the LosslDamage Waiver offered by the vehicle
Rental Agency.
• You must rent the vehicle in your own name and sign the vehicle rental
agreement(contract.
• The coverage period will not exceed 31 consecutive days, or 45
consecutive days if the Insured is an employee of an organization which
has provided a Card to the Insured for business use.
-21-
3/27/08 2:12:04 PM
THE KIND OF COVERAGE YOU RECEIVE:
In consideration of the premium paid by the Policyholder as required, and
subject to all the terms of the Policy, the Company agrees to reimburse on
an Actual Cash Value basis either the Insured or the Rental Agency for
repair or replacement of the Rented Automobile as a result of Collision
Damage to the Rented Automobile. The Company's liability will be for a
maximum reimbursement of $25,000. In no event will the Company be
liable beyond the amounts actually paid by the Insured or the Rental
Agency.
• If you or an Insured's 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 coverage is not all-inclusive, which means it does not cover such
things as personal i%k' or personal liability. It does not cover you for any
damages to other vehicles or property. It does not cover you for any injury
to any party.
WHO 15 COVERED:
• Discover Cardmembers
EXCLUDED RENTAL VEHICLES:
Off-road, antique or limited edition motor vehicles, trucks, recreational
vehicles, campers, pickup trucks, and mini-buses; limited edition motor
vehicles or high value, exotic, high performance or collector type. High
value motor vehicles are motor vehicles whose replacement value exceeds
$50,000, and antique motor vehicles are defined as any vehicle over 25 years
old, or any vehicle which has not been manufactured for 10 years or
more.
WHERE YOU ARE COVERED:
• Coverage applies to vehicles rented in the United States and Canada
only.
• Coverage is not available where prohibited by law.
WHAT IS NOT COVERED:
Coverage does not apply to loss resulting from the following:
• Any dishonest, fraudulent or criminal act of the Insured.
• Forgery by the Insured.
• Loss due to war or confiscation by authorities.
• Loss due to nuclear reaction or radioactive contamination.
• The Insured 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.
• Use of the Rented Automobile to carry passengers and property for hire.
• Use of the Rented Automobile by a person other than the one authorized
to operate the Rented Automobile by the terms of the Rental
Agreement.
• Loss of use of the Rented Automobile.
• Intentional damage to the Rented Automobile by the Insured.
• Damage which is due and confined to wear and tear, freezing, mechanical
or electrical breakdown or failure.
• Damage to tires unless the loss is coincident with a covered loss.
• Use of the Rented Automobile in tests, races or contests.
• The Rented Automobile being operated or located in any territory
prohibited by the terms of the Rental Agreement.
22 -
I 08D000 05130K TL20A0508.indd 25-26
FOR INSUREDS WHO ARE NEW YORK STATE RESIDENTS:
To the 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, or 45 consecutive
days if the Insured is an employee of an organization which has provided
the Card to the Insured for business use; and (2) the insurance provided by
this plan will be excess over any other valid and collectible insurance cover-
ing the Rented Automobile. However, the insurance provided under this
plan maybe primary if specifically provided for under the terms of this plan
and if the following criteria is met: (a) the Rented Automobile is rented for
use outside the United States, its territories and possessions; (b) the Insured
is an employee of an organization which has provided the Card to the
Insured for business use; and (c) the Rented Automobile is rented without a
driver.
HOW TO FILE A CLAIM UNDER EXCESS COLLISION DAMAGE WAIVER:
In the event of a claim, written or verbal notice must be provided as soon
as reasonably possible.
IF YOU HAVE ANY CLAIM RELATED QUESTIONS, PLEASE CALL THE CLAIMS
SERVICE CENTER Al`.1-8WLAIMS-0 (1410252-4670).
You can also go to the Company Webste (www.chubb.coml, click 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 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 23327-4700
Fax Number, 1-800-300-2538
CLAIM PROCEDURE:
The Insured must send the Company written notice of a claim, including the
Insured's name and Policy number, within 90 days after a covered loss
occurs. If notice cannot be given within that time, it must be given as soon
as reasonably possible. To file a sworn Proof of Loss, the Insured must send
the following information to the Company or its authorized
representative:
• A copy of the Account statement showing the automobile rental
transaction.
• A copy of the automobile rental agreement.
• A copy of the police report
• A copy of the initial claim report submitted to the automobile Rental
Aen.
• Ac opy of the paid claim presented by the automobile Rental Agency for
the Collision Damage for which the Insured is responsible.
• Proof of submission of the loss to, and the results of any settlement or
denial by the applicable insurance carrier(s).
• If no other insurance is applicable, a notarized statement from the Insured
to that effect.
Reminder: Please refer to the Insurance Disclosures section.
INSURANCE DISCLOSURES
As a handy reference guide, please read this document and keep it in a safe
place with your other insurance documents. This Summary of Coverage is
not a contract of insurance but is simply an informative statement to
23 -
3/27/08 2:12:04 PM
eligible Insureds of the principal provisions of the insurance while in effect.
Complete provisions pertaining to this plan of insurance are contained in
the master policy on file with DFS Services 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 govern.
Policy Underwritten By Plan Administrator
Federal Insurance Company ("Company") The Direct Marketing Group, Inc.
a member of the 13265 Bedford Avenue
Chubb Group of Insurance Companies Omaha, NE 68164
15 Mountain View Road, PO Box 1615
Warren, New Jersey 07061.1651
Master Policy Number: 9906-17-63
Effective date of benefits: Effective April 1, 2007, this guide replaces all
prior disclosures, program descriptions, advertising and/or brochures by any
party. Policyholder and Company reserve the right to change the benefits
and features of these programs at any time.
Cancellation: 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 notified at least 60 days
in advance. If the Company terminates, cancels, or chooses not to renew the
coverage to Policyholder, you will be notified as soon as is practicable,
insurance benefits will still apply 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.
Benefits to you: These benefits apply only to Cardmembers whose cards are
issued by U.S. financial institutions. The United States is defined as the 50
United States, the District of Columbia, American Samoa, Puerto Rico, Guam
and the U.S. Virgin Islands. No person or entity other than the Cardmember
shall have any legal or equitable right, remedy, or claim for insurance
proceeds and/or 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 eligible for prior
to the date that your Account is suspended or cancelled subject to the terms
and conditions of coverage of your Cardmember Agreement.
Transfer of rights or benefits: No rights or benefits provided under these
insurance benefits may be assigned without the prior written consent of the
Company.
Misrepresentation 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 or the subject thereof or the interest
of the insured herein, or in case of any fraud or false swearing by the
Insured relating thereto.
Coverage for an Insured will be void if, whether before or after a loss,
the Policyholder or its subscribing organization(s) has concealed or
misrepresented any material fact or circumstance concerning this coverage
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
organization(s) relating hereto.
Addition 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 others to submit, to
.24-
I 08D000 0580K TL20A0508.indd 27-28
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 reasonable 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,
examination of documents or any other act of the Company, its employees
or representatives in connection with the investigation of anyy loss or diem
will be deemed a waiver of any defense and such acts shall be deemed to
have been made or done without prejudice to the Company's liability.
No Benefitto Others: This coverage will in no way inure directly or indirectly
to the benefit of any insurer, person or organization or other bailee.
Subrogation: 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 daim
or right of action aggainst any individual, firm or corporation for such loss to
the Company or subrogate or hold in trust 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 extent payment floss has been made by the Company.
Arbitration: In the event of a dispute under this policy, either the Company
or the Insured may make a written demand for arbitration. In that case, the
Company and the Insured will each select an arbitrator. The two arbitrators
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 Association, The arbitration will be held in the state
of the Insured% principal residence.
GLOBAL TRAVELER'S HOTLINE TERMS AND CONDITIONS
The Global 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.com/travel to learn more.
Eligibility. You must be a Cardmember whose Account is in good standing,
the Cardmember's spouse or dependent child traveling with the
Cardmember or an Authorized User of an Account in good standing.
Third-Party Charges. Global Traveler's Hotline is not insurance, so you will
be responsible for all third-Party fees and expenses for services requested,
such as professional or medical fees.
Availability of Services. Certain services may not be available in all areas.
Call us at 1-800-DISCOVER (1-800-347-2683) for assistance or if you have
questions about a specific destination. Outside the U.S., call us collect at
1-801-902-3100. While AXA Assistance will make every reasonable effortto
provide the services, neither AXA Assistance nor Discover Bank or our
respective affiliates will be liable if a service is not provided or for any
services that are provided by third parties. The services and these terms and
conditions are subject to change without notice.
-25-
3/27/08 2:12:05 PM
Exhibit "B"
DISCOVER Now Balance Minimum Payment Due Account Number ending in 4628
$9,671.68 $ 1,580.110
_ -.- Enter Amount Enclosed Below
Payment Due Date $
• January 15, 2019 Please make check payable to Discover Card.
• Minimumpayymment due includes a past due
amount of $1,339.00.
16 SDSN6A01 0025244
LAKE, RICHARD M paperless and make account
PD BOX 212 Information
t
MECHANICSBURG PA 17055-0212 pro
ected statements only you can access.
Learn more at discoveccomlpaperless.
PO BOX 71084 illurllr,urslirlls,rl(lrl
CHARLOTTE NC 28272-1084
Address, e-mail or telephone change? Print change in space
(rrlr(Irrlrrr(rllrrrlrrlrlrrrllllrrr)rrlrrlrrllrrlrrlrrlrl)l
above, or go to Discover.com. Print your e-mail address to It
receive important Account information and special offers.
----------------------------------------------------------- -
Discover Miles Card Account Summary ------- --
Closing Date: December 16, 2008 page 1 of i
;Account number ending in 4628 Previous Balance $9
367.90
,Paymenf Due Date January 15, 2009 Payments And Credits ,
0
00
Minimum Payment Due $1,580.00 Purchases .
+ 78
00
!Credit Limit $8,750 Cash Advances .
+ 0
00
Credit Available SO Balance Transfers .
+ 0
00
;Cash Credit Limit $2,200.00 Finance .asargea .
+ 225
78
;Cash Credit Available $0.00 New Bolancs .
$9,671.68
You may be able to avoid Periodic Finance Charges, see the
reverse side for details.
Miles by Discover' open; Miles Balance o
N
M
ew
s Earned + 0
Miles Balance 0
M11e1 Anntwsarq'Manthr,0ftt>er..._.........---------- ------------------------------------------------------
Eam Miles even faster[ You can earn Double
Miles on up to $3000 in travel and restaurant
!purchases plus 1 Mile for every $1 spent on
loll your other purchases.
;How Can We Help You?
P 1. visit Dbcawr cars to pay your bo for a@ cost==%
Iatea Account Inkxmatlws
earn and redeem
;It `s your choice - 3 ways to help r
more
2. Call 1-BOO.DI$COVER (347-2683) for Fast, easy>ase.rvice
Please have your Discover Card available options or to speak with a Customer Service Account Manager
,
For TDD (assistance for hearing Impaired) see .reverse side 3. Write us at Discover Card, PO Box 30943,
Sala lake City, UT 84130
!Transactions $0 Fraud LiollmIty caarantee Use your Discover card with confidence.
TDcrans. ft post
Dab
lodwr/MieuAmuous Doc 16 Dec 16 OVERUMIT FEE $ 39.00
Dec 16 Dec 16 LATE FEE 39.00
FnfomtatiorrfocY-our ----------------- ---------------- ----------------------------
ATTENTION * • * Your account is seriously past due. Payment of the amount due and arrangements for,future
;payments should be made immediately.
;Finance Charge Summary
Average Daly
Boldnces Pg? is Nominal
ANNUAL ANNUAL PPeri?odicc F snsadion
?AV AOE P AGE .
'current billing period: 30 days Otl9RSa?_
!Purchases $6171.28 0.07942%
;C03h Advances $3305.31 0.07942% 28.99% F 28.99% $147.03 $0
28.99% F 28.99% $78.75 $0
The rates that apply to your Account are either Fixed (F) or they may vary M as noted above.
STOCK & GRIMES, LLP
By: Francis X. Grimes, Esquire
ID No.: 62404
804 West Avenue
Jenkintown, PA 1046
(215-576-1.900)
DISCOVER BANK : COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
Plaintiff : CIVIL ACTION-LAW
V.
RICHARD M. LAKE : NO. 2010-5562
Defendant
PRAECIPE TO DISCONTINUE ACTION PURSUANT TO Pa.R.C.P. 229(al
TO THE PROTHONOTARY:
Kindly mark this action discontinued without prejudice pursuant to Pa.R.C.P. 229(a).
Date: 9/9/10
r
CIS X. GRIMES, ESQUIE
ev for Plaintiff
C
C J
7?
"i3 LIJ =r'.
t.f? : srJ
v
t
( ?
ai J ?i
IV J M
4?
SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson
Sheriff'
tint
Jody S Smith
Chief Deputy ""'
Richard W Stewart COUNTY
Solicitor PENNSYLVANA
Discover Bank
vs.
Richard M. Lake
SHERIFF'S RETURN OF SERVICE
Case Number
2010-5562
09/03/2010 Ronny R. Anderson, Sheriff, who being duly sworn according to law, states that he made a diligent search
and inquiry for the within named defendant to wit: Richard M. Lake, but was unable to locate him in his
bailiwick. He therefore returns the within Complaint and Notice as not found as to the defendant Richard
M. Lake. The defendant's brother advised Deputies, Richard M. Lake is currently incarcerated at
Allenwood Federal Prison.
SHERIFF COST: $42.00 SO ANSWERS,
September 03, 2010 RON R ANDERSON, SHERIFF
!c'! CoulTySuito Shentt. 1pikio=ott. h,C.