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HomeMy WebLinkAbout10-7089{ ~.. ~ ~ .3tock & Grimes, LLP Attorney for Plaintiff `~_F3y: EDWARD STOCK, ESQUIRE ~: ]C. D.# .33657 E304 West Avenue ~renkintown, PA 19046 (215) 576-1900 ~, DISCOVER BANK COURT OF COMMON PLEAS 12 Reads .Way CUMBERLAND COUNTY New Casltle, DE 19720 CIVIL ACTION -LAW SAMUEL SUNDY ,x T29 N. Market Street _ 1.`~echancsburg, PA 17055--3340 ' ' r CIVIL ACTION COMPLAINT - - .YOU .HAVE BEEN .SUED IN CQURT. IF YOLT WISH. TO DEFENb r - .AGAINST THE CLAIIVIS SET FORTH IN THE FOLLOWING PAGES, YOU MUST ~ ~: TAKE ACTION. WTT1BhT TWENTY (20} DAYS AFTER THIS COMPLAINT AND I~TOTICE ARE. SEF~VED; 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 AGA]NST YOU. YOLI ARE WARNED THAT >,F SOU FAIL TO DO SO THE CASE MAY .PROCEED WI'I'I30UT YOU AND A JUDCrMENT MAY: BE ENTERED AGAINST YOU BY THE COURT WITHOUT FURTHER NOTICE- FOR ANY. 1VIONEY CLAIMED IN THE COMPLAINT OR!FOR ANY OTHER `CLAIM OR ' RELIEF IZEQUES'TED BY THE PLAINTIFF. YOU' MAY LOSE Iv10NEY OR PROPERTY OR OTHER RIGIi'TS IMPORTANT 'I'O YOIT. YOU. SHOULD TAKE THIS PAPER TO FOUR LAWYER AT ONCE. 1F ~ YOU DO NOT HAVE A LAWYER OR CANNOT 'AFFORD ONE,. G0 TO THE TELEPHONE OR THE OFFICE SET'FORTH BELOViW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATIClN 32 SOUTIi BEDFQRD STREET rARL,ISLE, PA 17013 1-800-990-9108 717-249-31b6 ~~ .~~ ~~. oe~ ~~~ U ~so~~.`3 i.. STOCK & GRIMES, LLP :BY: EDWARD STOCK, ESQUIRE I.D. #$13657 804 West .Avenue Jenkintown, PA 1904~i (215) 576-1900 Attorney. for Plaintiff DISCOVER BANK ;L2 Reads Way New Castle, DE 19720 Plaintiff vs. SAMUEL SUNDY 129 N. Market Street. Mechanicsburg, PA 17055-3340 Defendant (s ) 'COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW NO. I~ '~~~ CIVIL ACTION COMPLAINT COUNT I 1. Plaintiff, Discover Bank, is a banking institution organized under the laws of the .State of Delaware and maintains a business address of 12 Reads Way, New Castle, DE 1972.0. 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 ,~ i servicing agent for the Discover credit card accounts for :Discover Bank. It r_reates 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 ]IFS Services, LLC in the ordinary course of its business.. DFS Services, LLC is authorized to execute the Affidavit attached hereto as Exhibit "A". 5. The. Defendant, Samuel Sundy, is an adu7.t 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 t:he 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 L)efendant to the merchants. 7. The Defendant received the physical credit card issued by the Plaintiff, together with a Cardmember Agreement (extension of credit agreement), which agreement contains the terms and conditions governing the use of the credit card between the parties hereto. Plaintiff attaches hereto as Exhibit "B" a true and correct copy of the said Cardmember Agreement. 8. Thereafter, on sundry and various occasions, the Defendant, pursuant to the extension of credit agreement, used the credit card for purchases anal/or other forms of credit, which i credit and its terms are governed.. by the Cardmember Agreement attached hereto as Exhibit "B". 9. The Defendant ratified. the terms and condition of the Cardmember Agreement each and every time they 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 iwhe account . 10. Plaintiff believes., and therefore avers,. that the Defendaht's last payment in regard to their obligation was processed on November 8, 200.9, as a result thereof, the Defendant is in breach of their obligation to the Plaintiff in accordance with the Cardmember Agreement; and as a result thereof, the obligation of the Defendant to satisfy the entire balance in regard tc the credit card account became accelerated. 11. Plaintiff attaches hereto as Exhibit "C" a true and correct copy of the last monthly statement of the account issued to the Defendant. 12. The present outstanding balance which is due on the credit. account is $15,7.05.29':; 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 anal debt due the Plaintiff. 13. In addition to the balance on the account as r P indicated above, the Plaintiff has incurred additional damages for attorney fees and coasts and request payment of the same by the Defendant pursuant to the terms of the Cardmember .Agreement. 14. Plaintiff,. through. its counsel's investigation, l:~as determined that the Defendant is not in the military service. 15. THIS .COMMUNICATION OF PLAINTIFF'S COUNSEL IS FROM ~~ DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY :CNFORMATI®N OBTAINED WILL BE USED FOR THAT PURPOSE. WHEREFORE, Plaintiff, Discover Bank, demands Judgment against the Defendant, .Samuel Sundy, in the sum of $15,705.29, plus reasonable attorney fees, costs and pre-judgment interest in accordance with law. COUNT II 16. Plaintiff incorporates by reference, all of the foregoing averments of this Civi Action Complaint, as though the same were more fully set forth in length herein. 17. Defendant by the use of the Discover credit card a.nd '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 $15,705.29 to Plaintiff's f detriment. WHEREFORE, Plaintiff, Discover Bank, demands Judgment against the Defendant, Samuel Sundy, in the sum of $15.,705.29, plus reasonable attorney fees, costs and pre-judgment interest in accordance with law. DATE: t I i VERIFICA~IOlol ~ . The undersigned, EDWARD STOCK, ESQUIRE, hereby states that he is the attorney for the Plaintiff who is located outside this jurf sdiction 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 ~lae 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 l8 P.A.C.S..A. § 4904, relating to unsworn falsification to i authorities. i h n ~, ~. i Exhibit "A" , S ATTORNEY: ACCOUNT NUMBER: BALANCE:. CARDMEMBER {S): STATE OF OHIO COUNTY OF FRANKLIN STOCK ~~e342 $15,705.29 SAMUEL SUNDY Natasha Szczygiel, personally appeared before rrie, this day and after being duly sworn, according to law, upon his/her oath and says: I am a Legal Placement Account Manager for DFS SERVICES LLC., the servicing agent of DISCOVER BANK, an FDIC .insured Delaware State Bank. THAT this affidavit is made on the basis of my personal knowledge and in support of Plaintiff's suit on account against the Lebtor(s) THAT, in my capacity as Legal Placement Account Manager, I have control over and access to records regarding the Discover Card Account of the above referenced Debtor(s), further,. that. I have personally inspected said Account and statements regarding the balance due on said account. DFS SERVICES LLC. maintains these records in the ordinary course of business. TI-IAT the annexed statement of account is a true and correct statement of what is now due and owing Discover Bank on the account, and exhibit A"is a copy of the Cardmember Agreement between Discover Bank. and the above referenced Debtor(s). "The Cardmernber Agreement governs the terms and conditions of the relationship between Discover Bank and the Debtor(s) in connection with the account. Based on my review 'of the account records, to the best of my knowledge. and belief the :above referenced Debtor(s) is not ongaged in the military service of the United States and is a resident of the State and of the County in which this action has been filed. I declare under penalty of perjury that the foregoing, is true and correct to the best of my knowledge. Affiant ~ pHYLIlS A SCHOLEY Y Pub~C, Spate of Ohio Sworn and Subscribed before me, This'day of Wednesday, July 21, 2010 1 ~. Exhibit "B" } DISC ~ :.~:~~VER® 10DCM0_02BOK 7~22AG0270_01361 _readecindd T-2 N r YOUR DISCOVER® ACCOUNT CARDMEMBER AGREEMENT ....... . ... . .. . .Pages 9-J3 The terms. and conditions of your Accdunt„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 atpage 13. PRIVACY POLICY .........................Pages 13-96 A summary of the persohal information we collect, when it may be shared with others, and howwe 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 96-97 Importanttinformatioh about your7ights acid our responsibilities under the Fair Credit Billing Act. DESCRIPTION Of COVERAGE ...............Pages 9&-25 The terms and conditions of the Scheduled Air Travel Accidentlnsurance 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. ©2070 Discover Bank, Member FDIC TL22AG.0210 12/15/09 1:36;47 PM CARDMEMBER AGREEMENT Please read this Agreement carefully before using your Discovery Card .Account It contains the terms and conditions of your Accountp some of which map have changed from earlier materials provided to you. In the event of any differences, this Agreement shall control. We respect your privary. See the Privai:y section on page 10 and our Privary Polity for additional information. The Arbhration of Disputes section on page 11 includes a waiver of a number of rights, including the right to a jury trial. The. Right to Reject Arbitration section on page 13 describes the procedure you must follow if you desire to rejeR the Arbitration of Disputes section. DEFINITIONS ..................................................: 2 USING YOUR ACCOUNT .:.....:................................. 2 Your Acceptance of this Agreement .........:.................. 2 :Permitted Uses of Your Account .........:.........:........... Z Prohibited Uses of Your Account ..................:.... ... .. ... 3 Purchasesand 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 CHANGE5T0 THIS AGREEMENT .: . .................. . ......... . ... 4 MAKING PAYMENTS .............................. ............... 4 Promise to Pay ................ .............................. 4; Monthly Billing Statement ..............:.......:........"..... 4 Monthly Payment Options ..............................~".._ :. 4 Automatic Bilking Arrangements .... . . : . ................... . ... 5 How We Apply Payments ............ . :....................... S Minimum Monthly.Payment ................................... 5 Skip-A-Pa ment Offers ...............................:....... Y Credit Balances........, ..................................... 5. FINANCE CHARGES ...............:........................:..... 6 Mow We Calculate Periodic Finance Charges ............... ~...... 6' How We Calculate Your Balances ....._ ............, ........... 6 Variable lnferest Rates .. . .....................:............... 7 Default Rate .......:....:....... .............:............... 7 Cash Advance Transaction Fee Finance Charges . ... . .... . ........ 8 Balance Transfer Transaction Fee Finance Charges ................ 8 Foreign Currenry Transaction Fee'Finance Charges> .....:.' ...... 8 Minimum Finance Charge :.......:........"........,....:...:.. 8 Account Set-up Fee Finance Charge :...........:............... 8 FEES .....:...:.....:..:........................................ 8 Annual Fee ................................................. 8 Late Fee ......................... .. .. ....................... 9 Returned Payment Fee ...,...,, ........:.....:......... 9 Returned Discover Card Check Fee .......................~..... 9 Pay-By-Phone ............:....... .......................:... 9' Research Fee :.................... :. ........:................ 9 DEFAULT AND CANCELLATION ........... ........................ . 9' Types of Defaulf . . ......:..... . ..... . ........................ 9 Consequences of Default ..................................... 9 Cancellation, ......................................... .,.... 9 PRIVACY AND OUR COMMUNICATIONS WITH YOU ................. 10 Our Privary Policy ........................................... 10 Reporting to Credit Reporting Agencies ........................ 10 IODCMO_02BOK_iL22AG0270_01361_reader.indd 3-4 12H 5/09 1:36:41 PM Our Communications with You ............................... 10 Releasing Information About Your Account ......: ............. 10 Electronic Notices to You .................................... 1D Notices - Changesto Your Information .......:.................10 CLAIMS AND DISPUTES ..........................................10 Merchant Disputes,. ...................................:.....10 Claim Notices ...............................................11 Arbitration of Disputes :........:......:................:.....11 Right to Reject Arbitration......' ..............................13 LEGAL INTERPRETATION OF THIS AGREEMENT .......................13 Severebility ...........:.......................,,............13 Compliance with Interest Rate Limitations .......................13 Governing Law ............ ....... ........................13 ASSIGNMENT OFACCOUNT :........:.............................13 DEFINITIONS "Attount" means your Discover Card Account. "Authorized User" means any person whom you authorize to use your Account or a Card, whether you notify us ar 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. "We;' "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 v~ho are also contractually liable under thirAgreement. .USING YOURACCDUNT Your Acceptance of this Agreement: TFie use of your Account or a Card by you Oran Authorized User; or your failure tq cancel your Account within 30 days after receiving a Card, means you accept this Agreement, ihduding tfie Arbitration of Disputes sertion on page 11. You may, however, rejeR the Arbitration of l)fsputes settion as explained on page 13. Permitted Uses,of Your'Adount. Your Account may be used for: • Purchases - fo purchase or lease: goads. or services. from participating. merchants by presenting your Card or Account number or by using promotional checks, whuh we may fumish 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 inrtitutionsjpr other locations, the purchase of lotterytickets, racetrack wagers vouchers redeemable for cash or for casino chips, money orders, traveler's checks, savings bonds, foreign currenry and wire transfers, or by means df checks which we may furnish 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 byy means bf 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 parficipating establishments. You will'' be liable for guaranteed reservations that are not tancefled prior to the time specified by the establishment. Your Account may he used for personal, family, household and charitable,pilrposes: 2 Prohibited. Uses of Your Account. Your Account may not be used to obtain loans to purchase, carry or trade in securities, to pay any amount you owe underthis Agreement or for any transactions that are unlawful where you reside or where you are physically located when you use the Ar-count to initiate the transaction ("Prohibited Transactions"). Purchases and Cash Advances in Foreign Currencies. If you make a purchase or cash advance in a foreign currenry, it will be converted to U.S. dollars. using either agovernment-mandated rate, agovernment-published rate or the interbank exchange rate, depending on the country and currency in which the transaction is made. The rate used will be the rate in effect on the conversion date for the transaction, which may be different than the TransaRion Date as shown on your statement We charge a Foreign Currency Transaction Fee Finance Charge for each purchase made in a foreign currenry as described in the Foreign Currenry Transaction Fee Finance Charges section on page 8. Cash Advances. We may periodically offer you promotional rateson cash advances for the time period specified in the offer, subjed'to the Default Rate section. The offer may contain a Cash Advance Transaction Fee Finance Charge for each cash advance. 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 a promotionafrate, which will be theAnnuaf Percentage Rate that will applyto transferred balances for the time period specified in the offer, subject to the Default Rate 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 he offer and as set forth. in the Pricing Schedule; if applicable: Balance transfers subject to the. promotional late are referred to as promotional rate balance transfers; balance transfers for which the promotional rate lias expired .are referred to as purchase rate balahce 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 trahsaction 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 6e asked to provide .identification. Wehave the. right not to authorize atransaction for security or other reasons. Also, if our authorization system is not working; we may not be able to authorize a transairtion. We wdl not be liable to you if any of these eventr happen. Authorized. Users, if you want to cancel the authority of a current Authorized User to use your Account ora 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, PO Box 30943; Salt Lake City, UT 84f30-0943. None of your rights under this Agreement (other than to, pay amounts bwed) may be exercised by any person not a party 4o this Agreement acting pursuant to a povyer of attorney, without our separate written agreement (which we are not obligated to give), Unauthorized Use. Prior tp'its use, each Card mustbe signed by the person to whom it is issued, if a Card islostorstolen, 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 I7-800-DISCOVER (t-800-347-2683), or by writing Discover, PO Box 30943, Salt Lake City, UT 84130-0943, You agree to ,3- 10DCM0_02BOK_TL22AG0270_07361_readecindd 5-6 72/15/09 1:36:41 PM assist us in determining the facts relzxing 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. Ydur Credit Lines. We will advise you of your Account credit line. We may impose a lower line that will apply to cash advances, referred tows 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 notto allow your unpaid balance, including Finance Charges and fees,. to exceed. your Account credit line. If you exceed yourAaount credit line, we may request immediate payment of the amount by which you exceed your Accountcredit 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 credii line. For purposes of determining your available credit, we reserve the right to postpone for up to 75 business days: reducing your unpaid balances by the amount of any payment that we receive. Your available crgdit will, not&e increased by the amount of any credit balance. CHANGES TO THIS AGREEMENT From time to time, vve may, to the extern permitted by law, Change any term of this Agreement, inducting, but not limited to, any finance charge rate, fee: or method of computing any balance upon which the finarice charge rate is assessed, or add or delete any term to this Agreement We will give you notice of the change in the time and manner required bylaw, which indudes 45-days advance written notice in some circumstances. In addition, to the extent required by law, we will offer you the opportunity to''reject a change. Forexample, law requires, with certain exceptions, that we offer you the opportunity to reject an increase in a late fee or the elimination of'a grace period prior to the rffedive date of the change. If you reject a diange in aaordance with the instructions in the notice provided, we will close your Account and you will no longer be able to use it f or further iransaRions. You can then pay the remaining. balance under the unchanged term. We may also change any term of any product, service orbenefit offered in connectron with your Account. We wilt notify you as required bylaw or by;the terms of the product, servile orbenefit. MAKING PAYMENTS Promise to Pay. You agree to pay us in U.<.. dollars for all purchases, cash advances and balance transfers including applicable Finance Charges and ether 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 Accountor a Card. If you pay us in other than U.S. dollars, we may refuse to accept the payment or'eherge your Account our cost to convert your payment to U.S. dollars, All checks must be drawn on funds bn deposit in the W.S: You may nonuse a cash advance check,. balance transfer check or coupon, or any otherpromotional check drawn on any Discover Bank credit card account to make paymentr on your Account. If your Account is a joint Account, each of you agrees to be liable individually and jointly fpr the entire amount owed on your Aaount. We can accept late payments or partial payments or check and money orders marked payment in full" or With any other restrictive endorsementwithout.losing any ofour rights under this Agreement. Monthly Billing;Statement. We will send you a billing statement after each monthlybilling period in which you have a debit or credit balance, unless 4- 7000M0_02BOK_TL22AG0270 07367_reader.indd 7-8 we waive our right to do so as permitted bylaw: The billing statement will show all purchases, cash advances, halance 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 Billingg 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 INinimum Payment Due as described in the Minimum Monthly Payment section. All paymentr must be made in accordance with the terms stated on your monthly billing statement, as welt as the payment cut-off 'time stated in this section, and we will credit your Account in accordance with those terms and this section. Payments received in proper form at our processing facility by 5PM local time on any day will be credited as of that day. Payments received in proper form at our processing facility after 5PM local time will be credited as of the next day. Automatic Billing Arrangements. If your Account number. and/or Card expiration date changes and our records indicate you have automatic billing established with a merchant, we will attempt to provide your new Accountinformationtothatmerchant. To ensure uninterruptedbdhng,we recommend thatydu verifythe merchant has your newAccount information. You must contact the merchant directly if you do not wish to continue the automatic billing arrangement. How We Apply Payments. Each billing period, to the extent your payments exceed the Minimum Payment Due shown on your current billing statement, u7re will apply these excess amounts. in order of thg Annual Percentage Rate applicable to the balance of each transaction category (as referenced in the Finance Charges section), generally from highest to lowest, beginning with the balance subject to the highest Annual Percentage Rate. Otherwise, we will apply payments .and credits at our discretion, ihduding in a manner most favorable or convenientfor us. In all cases, we will apply payments and credits in accordance with applicable law. Minimum Monthly Payment. The Minimum Payment Due each billing period will equal: (i)-the greater of: • $40; 2% of the New Balance; or current Periodic Finance Charges plus Latefees plus $20; (ii) plus anypast due amount. We may also include some or all the amount by which you exceed your Account credit line: When we calculate the Minimum' Payment Due;. we may subtraR from the New Balance certain fees added to your Account during the billing period. The Minimum Payment Due will be rounded up to the nearest dollar and will never exceed the New Balance. Skip-A~PaymehtOffers. We may from time'to time allow you to notmake a minimum monthly payment and will notify you when this option is available.if you take advantage of thisoffer 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 wifl refund any credjt balance within seven business days from receipt of your written request. If you do not: request z refund, _5 12/75/09 7:36:42 PM we will automatically refund credit balances greater than $t that remain in your Account after 6 months. FINANCE CHARGES How We Calculate Periodic Finance Cfiarges. We begin to impose Periodic finance Charges on all tranzad(ons from the Transactioh Date for the transaction shown on your billing statement, unless a transaction is posted to yourAccotnt after the close of the billing period in which it occurs, in which case we begin to impose Periodic finance Charges on thattransadion from the first day of the billing period in which it is posted to your Account. We continue to impose Periodic Finance Chargges until the date you pay your entire New Balance shown on your billing statement by making payments orweceving credits. However, If you paid thelVew Balance on your previous billing statement. by the Payment Due Date shown on that billing statement, we will not impose Periodic Finance Charges on new purchases, that is~ purchases first appearing on the current billing statement, or any portion of a new purchase, paid by the Payment Due Dateron your current billing statement, We call this the"grace period." There is no grace period on balance transfers or cash advances. As more fully described in the section titled "How We Apply Payments," we generally apply payments to your Account based on the Annual Percentage Rate applicable to the balance of each transaction category. This means that if you do not pay the New Balance on the current billing statement by the Payment Due Date shown on that billing statement, then,. depending do the amount of your payment and the Annual Percentage Rates. onother-balances, you may not get a grace,period ctrl new purchases. ' We sort your transactions into groups. oi` purchases, cash advances, and balance transfers and then further sort thr. transactions within each group by their Annual Percentage Rate. For example, purchases subject to a promotional fate and purchases subject to a standard rate would be separate groups. We rater to. these groups as transaction categories. At the erd of each billing period, we compute balances and Periodic Finance Char es for each day of the billing period fqr each trahsaction category. We use the tollowing equation to compute Periodic Finance Charges for each transaction category: (Average Daily Balance) times (days'in billing periori) times (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 fof your Account. The Average Daily Balance is shown as zero i#, because of the. grace period, no Periodic Finance Charges apply to the balance in a transaction category, The Daily Periodic Ra{e is 11365th of the corresponding Annual Percentage Rate. How We Caldulate Your Balances. We use the Average Daily Balance i (including new transactions) method of calculating the balance upon which we impose Periodic finance Charges. We compute the Average Daily Balance for each transaction category 6y adding up all the daily balances in a billing {~eriotl for a transaction category and dividing the total. by the number of days in the billing period. We compute the daily balance for each ransaction category on each day by first adding the following to the previous day's daily balance: transactions with a Transaction Date of that day as shown on your billing statement, unless'the transaction is posted to your Account afterthe`dose of the billing period in which it occurs, in which case the transaction will be added to the daily balance as of the first dap of the billing period in which it is posted to your Account, fees charged hat _6_ day and Periodic Finance Charges accrued on the previous day's daily balance; and b 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 first day of the billing period, we consider the "previous day's daily balance" to have been your balance for each transaction category on the last day of your previous billing period All fees charged to your Attount are added to the standard purchase transactipn category with the exception of Cash Advance TransadioaFee 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. Variable Interest Rates: One or more Daily Periodic Rates and corresponding Annual Percentage Rates that apply. to a transaction category may be variable rates as set forth in your Pncrng Schedule or in any special offers you receive from us. 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 urposerof this Agreement, the Prime Rate is the highest rate of interest Psted as the, "prime rate" in the Money Rates seRion'of The Wal! Street Journal on the last business day of the month. The Prime Rate is merely a pricingg 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 AnnualPercentage 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 ri the Prime Rate. An increase in the Annual Percentage Rate may increase your Minimum Payment Due. Default Rate. Each time that you do not make the Minimum Payment Due by,the Payment Due [)ate we-may, in accordance with applicable law: (i) terminate the availability of any promotional Annual Percentage Rates on new transactions; and (ii) increase your Annual Percentage Rates for new transactions to variable Default Rates, Each new variable Default Rate. for a new transaction is determined by adding up to 5 additional percentage .points to the otherwise applicable Annual Percentage Rate and will vary based on any changes in the Prime Rate. (For example, if the promotional purchase rate was 2.99%a and the rate for other purchases was 15:99% and yoti paid late once, that. rate for all new purchases could increase up to 20.99% variable and vary thereafter with the Prime Rate.) When we first determine the variable Default Rates, we use the Prime Rate effective for the billing period in which' you pay late. The variable Default Rates are determined in accordance with the Variable Interest Rates section. We will base your Default Rafe on your creditworthiness and other factors su<h as your current Annual Percentage Rates and youi Accounthistory. If we increase any of your Annual Percentage Rates to a Default Rate, we will send you a notice, m accordance with applicablelaw, advising of,(i) the date the new Default Rate will. apply (the "Default Rate Effective Date"); (ii) the type of new transactions to which it will be applied (note: the new Default Rate will not apply to any othertransactions) and, (iii) your right to reject the new Default Rate. Newtransactionsare those transactions which' either (i) have a Transaction Date, as shown on yourbilling statement, of more than fourteen days after we mail or deliver the notice to, you or, (ii) if permitted by appliable Iaw,were posted to your Account after the current. Default Rate Effective Date. Your Account will. not be subject to'a Default. Rate #oi the first twelve billing periods after your Account is firsf opened. ,~. 10DGMO 02eOK TL22AG0210 01361 reatler.intltl 9-10 - 12/15/09 1:36:42 PM If your Annual Percentage Rate for purchases, balance transfers or cash advances was increased to a Default Rate, we will, to the extent required by applicable law, periodically review your Account to determine. if any of 'your Annual Percentage Rates should be reduced. Any reduced Annual Percentage Rates on new and existing 6alahces may be different and may be higher than your previous standard Annual Percentage Rates for purchases, balance transfers and/or cash advances or any promotional rata Cash Advance TransaRion Fee Finance Charges. Unless otherwise specified in a cash advance offe, we will charge you a Cash Advance Transaction Fee .FINANCE CHARGE of 5% of the amount of each new cash advance with a minimum Cash Advance Transaction Fee FINANCE CHARGE of $10 and no .maximum: The impositioh of Cash Advance Transadfori 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 sedi6n for each cash advance transaction category arid.add up these amounts. Balance Transfer Transaction Fee Finarice Charges. Unless otherwise specified in a balance transfer offer, we will charge you a Balance Transfer Transaction Fee FINANCE CHARGE of 6% of the amount of each new halancetransferwith aminimum Balance TransferTransadion Fee FINANCE CHARGE of $10 and no maximum. The imposition of Balance Transfer' Transaction Fee' Finance Charges may result in an Annual Percentage Rate far tiaiance transfers that is higher than tfle nominal Annual Percentage Rate. To obtain the total Finance Charge on balance transfers for each billing period, we add any Balance TransferTransaction 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 balance transfer transaction category and add up these amdunts. Foreign Currency Transaction fee finance Charges. We will. charge you a Foreign Currency Transaction Fee FINANCE CHARGE of 2% of the U.S. dollar amount of each purchase made in a foreiggn currenry: The imposition of Foreign currenry Transaction Fee Finance Cklarges may result in an Annual Percentage Rate for purchases that is higher than the nominal Annual Percentage Rate. To obtain the total finance Charge on purchases for each billing period, we add any Foreign Currency transaction Fee Finance Charges for the billing period charged under this. section to any. Periodic Finance Charges calculated underxhe Periodic Finance Charges sectionfor each purchase transadton categoryand add up these amounts. Minimum Finance f Charge. We will charge you a minimum FINANCE CHARGE of $.SO for any billing period in which Periodic Finance Charges of less than 8.50 would otherwise be imposed. Account Set-up Fee Finance Charge. If your Pricing Schedule accompanying your Card includes an Account Set-up Fee, we vvill charge you a orie•time Accouht Set-up fee FINANCE CHARGE in the amount indicated when we open your Account; FEES Annual Fee. If your Pricing Schedule auompanying your Card includes an Annual Fee, we will charge you an Annual Fee in the amount indicated. We will charge you this'fee when we open your Account and at the beginning of each anniversary year your Account a open. The Annual. Fee is not 8 refundable, except as provided bylaw. 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 6e 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 6illirig period for which we did not receive timely payment. If the sum is $2b0 or less, the fee is $19. if it is greater than $250, the fee is $39. Returned Paymentfee. 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, eledronically,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. We may from time to time allowyou to make payments by authorizing us over the telephone to transferor pay funds-from a deposit account to your Account. We will not charge you aPay-6y-Phone fee. Research Fee. We may charge you a Research Fee of $5 for each copy of a billirig statement or sales slipthatyou requesf. Howevef, we will not charge a fee if you request copies in connection with a billing error. DEFAULT AND CANCELLATION .Types of Default You are in default if you become insolvent; if you file a :bankruptcy petition or have one filed against. you; if we have a reasonable belief that you. are unable or unwilling to repay your obligations to us; if .you are declared incompetent by a court or if a court appoints a guardian for you or a cohserJator for your assets; if ou die; if you fail to comply with the terms of this Agreement, including faring to make a required payment when due, exceeding your Account credit hne or using your Card or 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 Aaount immediately due and payable without notice;if we refer the collection of your Aaount 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 attorneyys' fees acid 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 I telephone and returning or destroying every Card and unused check that we have provided you: You can notify us by telephoning 1-800-DISCOVER (1-800-347-2683), or by writing Discover, PO Box 30943, Salt lake City, UT 84730-0943.Of course, ydu will stilt be responsible to pay any amount you owe us according to the terms of this Agreement. If your Account is a joinf Account, either Cardmember may cancel the Account, but you will both 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 ~rithout 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. _g: tODCMO_02BOK_TL22AG0210_01361 _reader.indd 11-1.2 ~ 12/15/09 7:36:42 PM 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 Privary of information about you and your Account. Our Privacy Polity 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 yournay take 'td limn qur sharing,of such information with others. Please read it carefully as it is part of your Cardmember Agreement. Reporting to Credit Reporting Agencies. Az indicated in our Privary Polity, we may reporti to credit reporting agencies and other «editors the status and payment history of your Account, including negative credit information. Late payments; missed paymenis.or other defaults on your Account maybe reflected in your credit report. We normally report to such credit reporting agencies each month. If you believe that oiir report of your Account status is inaccurte or incomplete, please write us at the following address: Discover, PO Box 15316, Wilmington, DE 19850-5376. Please include your name, address,'. home telephone number and Account number. Our Communications with You. You agree that our personnel may listen to or record telephone calls between you and our representatives without additional notice to you, including but not IimRed to calls we make to collect debts. VVe may use any medium permitted by Jaw, including but not limited to mail, live telephone calls, automated telepphone equipment, prerecorded telephone calls, a-mail and cal+s to your cell phone to contact you about your Account or to offer yyou products or services that may be of value to you.1f you prefer not to;be contacted in one or more of these ways; you must either telephone. us'at 1-SOQ-DISCOVER (1.800-347-2683) or write to us at Discover, PO Box 30961, Salt Lake City, UT 30961-0961. Releasing Information About Your Account. We provide various methods by which you can obtain information aboirt your Account. We will only release such information to you, any Authorized User that our :records indicate is art authorized buyer on your Account, and any other person with your prior permission, in addition to as provided in our Privary Polity or as required bylaw. Our security measures cannot insure against unauthorized inquvies. You-agree that we wil( not be responsible for the release of informatipn to anyone who, even if without your authorization or permission, has gained possession of a Card or has learned otheridentifying characteristics about you such as' your personal identification number, Account number or social securitynumber. Elecfrpnic Notices to You. We may offer you the oppor4unityto receive certain notices from us electronically rather than through the mail, including monthly billing statements and charige of terms notices. The terms and conditions for. receiving these electronic communications will be described in the offer. Notices -Changes to Your Information. If ynu change your e-mail address, mailing address or Relephpne number you must notify us of your new address qr telephone number within 15 days: You can notify us by telepHohing 1-800-DISCOVER (1-800-347-2683) or by writing Discpver, 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 DISPlJTES Merchant Disputes. We ace not responsible for the refusal of anyone to accept or honor a Card or to accept checks that we, have provided you. If a merciant fails to provide your purchase to your satisfaction and you -10- request a uedit to your Account, we will investigate the dispute: If we resolve the dispute in your favor, we will issue a credit to yout 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 application, the relationships which result from your Attouni or the enfdreeability 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, expiamirig 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 parenf cotporation, subsidiaries, affiliates (including, without limitation, DFS Services LLC), predecessors, successors, assigns, as well as the officers, :directors and employeespf each of these entities. Any Claim Notice shall be sent to us at Discover, PO Box 3024, New Albany, OH 43054'(pr 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 eny past; present or future claim or dispute (whether based upon contract, tort, statute, common law or equity) between you and us arisingg from or relating to your Account, any prior account you have had'with us, your application, the relationships which result from ..your Account or the enforceabilityorscope ofthis arbitration provision, of the Agreementor 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 bTHER ACCOUNTS, OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR MEMBER OF A CLASS OR1N 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 effe¢bf the Class Action Waiver. Even if all parties have opted to litigate a claim in court, you or we may elect arbitration with respell to any Bairn made bya 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 briny in small claims court or your state's equivalenYCOiirt, 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 Ac[ (FAA). The arbitration shall be conducted, atthe option of whoever filesthe arbitration claim, by eitfier the American Arbitration Association (AAA) or JAMS in accordance with their procedures in effect when-the claim is filed. For a copyof their procedures, to file adaim or for other information, contact AAA aY 335 Madison Ave., Floor 10, New York, NY 10017-5905, it - tODCMO_0260K_Tt22AG0210_Oi361_readecindd 13-14 12/15/09 1:36:42 PM vvww.adr.org (phone 1-800-778-7879) or JAMS at 620 Eighth Ave., Floor 34, New York, NY 10018, www.jamsadi.com (phone 1-800-352-5267). No other arbitration forum vyill be permitted, except as agreed to pursuant to either the Changes td this Agreement section or a writing signed by both parties. If neither AAA nor JAMS is able or willing to serve as the arbitration administrator and we and you are unable to agfee on a replacement administrator or arbitrator, then a court of competent jurisdiction will appoint an administrator or arbitrator or arbitrators (in the case of an appeal to a panel of three arbitrators as described below). Unless consented to 6y alFparties, no arbitration maybe administered by any administrator or arbitrated by any arbitrator that has any formal or informal polity, rule or procedure that is inconsistent with or purports to override the terms of this section. If we elett 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 rand 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, PO Box 30421, Salt Lake City, UT 84730-0421. The arbitrator will decide who will ultimately be responsible forpaying those fees, You will only be responsible for paying or reimbursing our erdiiratioh filing, administrative or hearing fees to the extent you :would have beep responsible for paying "attorneys' fees and court or other zolledion costs" had the action proceeded in court..dh 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 distinct where you reside. The arbitrator shall follow applicable substantive law to the extent consisteht with the FAA and applicable statutes of limitations and shall. honor,daims of privilege recognized at law and shall be authorized fo award all. remedies permitted by the substantive laws that. would apply if the action were pending in coutt. if requested by any party, the arbitrator seal) write an opinion containing the reasons for the award. The arbitrator's decision wiH be final and binding except for any appeal rights under the;FAA-and except that if the amount imcontroversy exceeds $100,000, any pa may appeal the award within 30 days to athree-arbitrator panel, which shall review the award de novo. Unless applicable law provides otherwise, the appealing party will pay titre cost of the appeal, regardless of its outcome. However, we will consider in good faith ahy reasonable request for us to bear the fees charged by the arbitration administrator and the arbitratdrs in connection will the appeal. Judggment upon. any .award by the arbitrator may be enforced: in any court having junsdrction. Other Beneficiaries of this Provision. Our rights and obligations under this arbitrationprovisidrisliall inure to the benefit of and be binding upon our parent corporations, subsidiaries, affiliates (including; without limitation, DF5' Services LLC); predecessors, successors, assigns, as well as the officers, direRors and employees of each of these entities, and will also inure to the ben'efB of any third party named as a co-defendant with us or with any of the"foregoing iR a-claim which is sub'ect to this arbitration provision. Your rights and obligations underthis ar~itratian provision shall inure to the -12- 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 tolled a debt owed by you, any bankruptry 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 noticeof refection within30 days after receiving z Card, at the }ollowing address: Discover, PO Box 30938, Soh 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 orformat that does not comply with all applicable requirements is insufficient notice. ln' order to process your notice; we require that the notice be provided byy you directly and not through a third party, Rejection of arbitration willCnot affect your other rights or responsrblhtiesuoder 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 sectidn with' respect to this and any prior account you have had with us, even if you have previously sent a rejection notice with respell to that prior account. LEGAL INTERPRETATION OFTH15 AGREEMENT Severability. If anyy 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 sinvalidated in any proceeding in which you and we are involved, then the Arbitration of Disputes section will be void with respect to that proceedirg. 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 bylaw. If it is everfinally 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 othercharges 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 ydu 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. 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, PRIVACY POLICY We are required by federal law to provide you with a copy of our Privacy Polity each year. If you have prevously notified us about your privary preferences, as described in Section 4, it is ndt necessary to do so-again unless you decide to change your preferences. 13 iUDCMO D2BOK TL22AG0270 01367 reatler.indd 16-16 12/76/09 7:36:43 PM We Respect Your Privacy Our mission is to provideyou with superior products and services, along with the peace of mind knowing that the severity of your personal information is our top priority We understand your concerns about guarding information about you ahd your Account. We vJant to assure you that we have taken steps, and will continue to take rteps, to safeguard that information. This Privaty Policy describes our efforts to rneet these objectives. It includes a summaryof the following important information: • A listing of the personal informatiomwe 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 otir Privary Polity carefully. It will help you understand how we collect and share information. 1. What Personal Information Da We Collect? To serve you better and manage our business, it is important that we tolled and mamtam accurate personal reformation about you. We obtain this information from applications and other forms you submitto us, from your dealings with us and others;. from consumer reporting agencies, and from other sources, such as.pur Web sites. For example: • We may obtain information stichas your name, address and daterof firth .from applications and other forms you submitto us. • 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 lochs 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. 2. Is Personal Information Shared with Otr~ers? We limit the sharing of information with others. Many of the offers you receive for produRs and services areprovided directly to you from us. For example, a retailer that accepts the Discdvei~ Card may come to Ls with a special offer for ardmembers, such as a discount certrficate or prbduct upgrade. After'carefu) consideration of the nature of the offer and the company, we veil I create a list of{ardmembers who may be interested in the offer based on certain characteristics: We will send the offer directly to those Cardmembers on behalf o{ the retaiMer by, for example, including an insert in their monthly billing statement or mailing the offer ourselves. We control the information used to make the offal; we do not share the list or any information about our Cardmembers with the retailer. Noweve, please underrtahd that if you. do receive this types of offer from us and choose to take-advantage of it, the retailer may then learn information about pbu because only {ardmembers with certain characteristic received the offer. There are, however, circumstances ih which we may share the information we tolled 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. VJe require these companies to adhere to our privary standards and to use. this information only fdr the -14- 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 family 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.5haring 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 gou. These companies include financial service providers, such as insurance companies, and non- financial companies; such as retailers. c. Sharing Personal Infdrmation 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 financial institutions with which we have joint marketing agreementr; or?companies that are our partners for co-brand credit card programs or reward programs. We may also share such information as permitted bylaw. 3. How Do We Protect the Confidentiality, Security and Integrity of Information about You? ,,, VJe maintain physical, eledronicand procedural safeguards to protect the information we tolled aboutyou. Accessto such information is restrictedto individuals who need it inorderto serviceyour Aaountor 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 tfiirtl parties provide'support services,. we require them to conform to our plivacyrtandards. It is important that the informatipri'we maintain about you is accurate and cdmplete. If you see information iri your morithly billing statements nr elsewhere which suggestr that our information is incomplete or inaccurate, please write to us at Discove , F0 Bpz 30943, Salflake City, UT 84130-0943 sothatwe can update this information. 4. How Can You Limit Sharing of Information About You? We respect your privary and offer you choices as to'whether we'may share information about you with others. You have the option totell us h~tto shale the information we coNed about you, as described in Section 1; with Non- affiliated third parties. You also have the option totell us not to share the information we collect aboutyou; as described in Section 1, with',companies in'our corporate family. If yyou indicate a preferende for either of these options, please understand that you maynot receive; offers for prpductr and services'provided by other companies that could help you lower your costs; maximizeyour financial resources, ormanage your finances. 1o'indicate your preferences, please call. us at 1-800-225-5202 pr write to Discover, PO Box 30961, Salt Lake City, UT 84130.0961. If,lyou Piave previously notified us about your privacy preferences, it is not netessary to dd so again unless you decide to Change your preferences. Your written requestshould'indude yotirname, address, telephone number and Account number(s) and should not besent with any othercorrespondence. Inorder 15- tODCMO_02BOK_TL22AG0210_07367_readecindd 77-t8 ~ 12176!09 1:36:43 PM 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. for 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 bylaw, for thirty days after we provide this Policy to you in order to give you ah opportunity to inform us about your preferences. If you are an existing Cardmember, please understand that you. may continue fo receive marketing offers directly from other companies that were already in production prior to the processing of your request. This Privary Polity 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 bylaw. This notification supersedes all previously issued Privary Policies. We reserve the right to amend this Privacy Policy from time to time and we will notify you if we do so. This Privary Policy is provided to you by Discover Bank and its subsidiaries, which currently include GTC Insurance: Agenry, Inc. and Discover Products Inc Unless otherwise specified, it applies fn'the family of Discover Cards for consumers and fhe'produds and services offered in connection with those Cards, inducting tN~~ Wallet Protection card registration service (with the exception of any information registered ih connection with the service, which will not be shared). It is part of your .Cardmember Agreement and provides a further explanation of how we tolled and share information. You may have other rights under state lavrs that apply td this information. Please note that youwdl also receive Privary notices for other credit card accounts you have with us, as well as ocher 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 hotice. Vermont Residehts-Your state law requires financial institutions to obtain your conseht prior to sharing informatfora about you with others. Excepfas permitted by law, we will not share information we collect about you vvrth non-affiliated third parties orcompanies in our corporate family unless you call usat 1.800-DISCOVER (1-800-347.2683) and authorize usto do so. CalifomiaResidents-Your state law requires financial institutions to obtain your consent poor to sharing information about you with non-affiliated third parties. Except.as permitted bylaw, we will not share information we collett about you with non-affiliated third parties while you are a resident of California. ~ Your Billing Rights KEEP THIS NOTICE FGR FUTURE USE: This .notice contains important information about your rights and' our responsibilities underthe Fair Credit Billing Act. 1. Notify Us in Case of Errors or Questions About Your Bill If you think your bilfis 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. 4Urite to us as soon as possible. We must hear from you'no later than 60 days after we sent you the first bill -16- 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 errorand 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 Responsi6flifies After INe Receive Your Writfen Notice VJe must acknowledge your letter within 30 days, unless we havecorrected the error by then. Within 90 days; we must either correct the error or explain why we believe the bill was correct. 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 amouht against your Attount creditlimit. You do not have to pa any questioned amount. while we are investigating, but you are still obligated to pay the parts of your bill that are nobm question.' If wefind that we made a mistake on your Dill, you will not have td pay any finance charges related to any questioned amount. If we didnR make a mistake, you may haveto paythe financecharges, and you will have to make u,p any missed payments on the questioned amouht. In either case, we will send you 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 delinquent. However, if our explanation''does not satisfy you andjyou write us within teh days telling us that you,still refuse to pay, we must tell anyone vve,report you to that you have a question about your bill. And; we must tell'you the name of anyone wereported you to, We must tell ahyonewe report you to that the matter has beerisettled between us whehh itfinally isC 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 far Credit Card Purchases If qou have a problem with the quality of .goods oc services that you purchased with a credit card, and you tried in good faith to rotted the prgblem with the merchant, you may have the right not to pay tiie- remaining, amount due on the goods or services.Tfiere are two limitations on this right: (a) you must have made the purchase in your hpme state or, if nofwithin 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: Burchases Made with Checks or Cash Advances The Special Rule for Credit Card Purchases does hot 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 thetight to withhold payment of the amount due. 17 . 70DCM0 0280K_Tt22AG0210_01367 _reader.indd 79-20 72/15(09 1:36:43 PM DESCRIPTION OF (:OVERAGE SCHEDULED AIR TRAVEL ACCIDENT INSURANCE Discover® Cardmembers are provided with$500,D00 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 ourchased on your Card are riding as a passenger in or entering, exiting or being struck by aScheduled 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 puolic for a fee and while traveling directly to or from the airport immediately preceding the departure df a Scheduled Aircraft on which the Insured Person has puuhased passage and immediately '-Ilcn~r g 1~.~• arrival ,f a Schedule Airrrah or+ ,vhich the Insured Person was a passenger. *Cdverage is `underwritten by Federallnsurahce 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 far Accidental Loss of Life: Thee Loss must occur within one year of the Accident: MAXIMUM UMIT OF INSURANCE: If more than one Insured Personsuffers 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 Jimit of insurance will be divided proportionally among the Insured Persons, based on each.. applicable Benefit Amount. In the event of multiple Accidental deaths per Accountarising from any one Accident, the Company's liability for all suchldsses will be limited to a maximum limit of insurance equal to two times the applicable Benefit Amount for Loss of Life. Benefits will be propdrtionately divided among the Insured Persons up#o the maximum limit. of insurance. DEFINITIONS: Accident or Accidental meansa sudden, unforeseen: and unexpected event happening by chance, and includes unavoidable exposure to elements arising from a covered Hazard. Accidental Bodily IniurvGes) means bodily injury which is Accidental, is the direct source of a Loss, is independent of disease, illness or other cause and occurs while4his polity is in force. Aadune means a Card account. Benefit Amount means the: Loss amount. at the time the entire cost of the passenger fare is charged fo an Account. Card.ineans the Discover Card. Cardmember means the holder of the Card whose name appears on the credit card? Com'an means, the FederallnsuranceLampany: Covered Trip means travel on a Scheduled Aircraft when the entire cost of the paSSenge fare for such transportation, less redeemable Certificates, vouchers or coupons, has been chargeb to the Insured Person's Account. De entlent Child or Children means those children, including adopted chi dies and those children. placed. for adoption, who are primarily dependent upon the Insured Person for maintenance arid support and who t8 10DDM0_02BOK_TL22AG0210_01361 _reader.indd 21-22 are: (1) underthe 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 (B) under the age of 25 and dassrfied as full-time students at an institution pt 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 institu3ion. Neither the Insured Person nor the Domestic Partner can be married to, nor iri a civil union with, anyone else. Hazard. means the covered circumstances for which thh;insurante h 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 aII Cardmembers, their spouses, -0omestic Partners and Dependent Children, as well as authorized users of the Aadunt Loss means the Loss of Life. Loss of Life means death, including clinical death determined by the local governing medical authorities,. Polic~lder means DFS Services LLC, the entity responsible for thepayment of premium. Scheduled Aircra#~ means an aircraft :owned andldroperated by a Scheduled Airline. Scheduled Airline means an airline which is either of United States registry and certified by the United States government to'tarry passesggecs on a regularly scheduled basis or of foreign register and approved 6y'the United States government and the appropriate foreign authority: VJar means hostilities following a declaration of VVar 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 df 'any Scheduled Aircraft ortonveyance in which the Insured Person was covered` as an occupant, it wil I be assumed; subject to all other terms of the polity, that the Insured Person has suffered. Loss of Life covered underth'ispoliry. 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 whrle the insurance is effective. It 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 bean eligible Cardmember. _ig_ 72/15/09 7:36:44 PM COST: This insurance plan is provided at no additional cost to eligible Insured Persons for Covered Trips. Poliryhplder pays the full cost of the insurance. THE BENEFICIARY: The Loss of Life benefit wilt be paid to the beneficiary designated by you. If no such designation has been made, that benefit will be paid to the fast surviving beneficiary 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 tc you. If you wish to change your beneficiary, you may request a 6enefiaary designation form by writing to the plan administrator at: The Direct Marketing Group, Inc.,13265 Bedford Avenue, Omaha, NE 68164 or at Beneficiaryrequest@TheDireilMG.com. EXCLUSIONS: This insurance plan does not cover Loss resulting from: (t)an Accident occurring. while an Insured Person is in, entering, or exiting any aircraft owned, leased or operated by this Policyholder or any aircraft owned, leased or operated by an employee of the Poliryholder on behalf of the Poliryholder (this. exclusion does not apply to aircraft Chartered with pilot or crew on one time chaRer basis), 12) an accident while an Insured Person is in, entering, or exiting any aircraft while acting or training as a pilot, pr crew member (this exclusion does not apply to passengers who temporarily perform pilot or crewfunilipns in a life tlireatening emergenry); (3) emotional trauma; mental or physical illness, disease, pregnanry, childbirth or miscarriage, baileriaf or viral °nfection, 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 oe given to the Company within 90 days after th'e 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.: farms for giving proof. of Loss to us within 15 days. If you do not receive the forms; you should send the Company a written descnptibn of the Loss: CLAIM PROOF OF LOSS: Complete proof bf Loss. must. be given to Company withro'90 days after the date of Lozs, or as soon as reasonably possible. Failure td give complete proof of Loss within these time frames ~ will not invalidate; any otherwise valid claim if notice is given as soon a's 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 BenefiYAmount within 60 days after complete proof of Loss is received and if you, the Policyhdlder andlbr the benefuary have I complied with all the terms of the policy, ARBITRATION: In the event of a dispute under this policy; !either the Company or the dnsured Person may make a written demand for arbitration. In that case, the'Companyand the Insbred Person will each select an arbitrator. The two arbitrators will select a third. Ifthey cannot agree within tSldays, 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{ALL THE -20- 10DCM0_0280K TL22AG0210 01361 _reader.indd 23-24 CLAIMS SERVICE CENTER AT 1-800-CLAIMS-O (1.800-252-4670). You can also go to the Company Web site (www.chubb.com), 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 canfile a claim by mail or fax. Mail'sng 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 arid keep it in a safe place with your other insurance documents. This description of coverage is not a contrail of insurance but is a summary of the :principal .provisions of the insurance while in effect. {omplete polity provisions are contained in the Master Polity, which can be obtained from Elie Poliryholder. Policy #9906-18-06 Poliry.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 68764.` 15 Mountain View Road, PO Box 1615 Warren; NJ D7061.1651 bESCRiPTION 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 of less (or 45 days under certain arcumstances described below) with your Card (as defined below), you may be,eligibte for benefits under. this coverage. Excess Collision Damage Waiver is an insurance program, underwritten by Federal Insurance Company Policy #9906-17-63 (the "Policy") DEFINffI0N5: , Account means a Card account. Actual Cash Value means .the cost to repair or replace the Rented Automobile at the time of loss, less depreciation. Cardmember means the holder of the Card whose name appears on the credit card. Card means the Discover Card. Collision Damaae means the direct-and accidental damage to a Rented. Automobile caused by upset or collision with another obleil. Collision Damage does not include foss caused by missiles, falling ob'ects, fire, theft or larceny, explosion,. earthquake, windstorm, hail, water, Mood, malicious mischief or vandalism, riot or civil commotion, Coco an means the Federal Insurance Company. Insured means. Cardmembers and authorized users of the Account. Polioolder meansOFSiervices LLC; the entity responsible forthe payment of premium, Rental Aaencv means a commercial automobile rental company licensed under the laws of the applicable jurisdiction. Rented Automobile means afour-wheeled private passenger type motor vehicle or a minivan manufactured and designed to transport a maximum of seven passengers and used excursively to carry passengers. A Rented _Zt- 1215/09 1:36:44 PM Automobile must be designed for travel cn public roads and rented from Rental Agenry. 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. • You must decline the LossNamage Waiver offered by the vehicle Rental • You must teat 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,lnsured is an employee of an organization which bas provided a Card to the Insured for business use. THE KIND OF COVERAGE YOU'RECEIVE: In consideration of the premium paid bythe 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 br the Rental Agenry 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 $ZS,DDO. In no event vvillthe Company be liable beyond fhe amduntr actually paid by the Insured or the. Rental Agenry: + If you or an Insured's primary vehicle insurance or'gther coverage has made payments for a covered Iqss, Excess -Collision [)amage'Waiver will cover your deductible and any other eligible. amounts not covered h6y other insurance. • This coverage is not all-inclusive, which means it does not cover such things as'personal inJ'ury or personal liability. It does hottoveryou for any damages to other vehicles or property. It does not coveryou for any injury to,any party. WHO IS COVERED: • Discover Cardmembers EXCLIIDE[IBENTALVEHlCLES: Off-'road; antique. or limited edition moor vehicles; Mucks; recreational hch:•s, .a>,pRis, p. 6.1 .rutilzs, and hi u,:-bcses: Ilmited edilion motor vehicles or high value, exotic, high performance or collettor type. High value motor vehiclesare motor vehicles whose replacement value exceeds $50,Op0, 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 anywhere in the world. • Coverage is not available where prohibited.by law. WHAT IS NOT COVERED: I Coveragge does riot apply to loss resulting Irom 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 Insdred being intoxicated, as defned by the laws of the jurisdiction vahere.the loss occurred, or under the influehce of any narcotic unless prescribed by a physician. • Use of the Rented Automobile to tarry passengers and property far hire. -22- tODCMO_02601<_TL22AG0210_01367 _reader.indd 25-26 • Use of 'the Rented Automobile by a person other than the one authorized to operate the Rented Automobile by the teens 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 Igcated in any territory prohibited by the terms of the Rental Agreement. FOR INSUREDS WHO ARf NEW YORK STATE RESIDENTS: To the extent that this plan provides insurance against damage td a rented motor vehicle, the following terms and conditions apply: (1j the period of insurance coverage will not exceed 31 consecutive days, or 45 consecutive days if the Insured is an employee of an organizatioh which fias provided the Card to the Insured for business use; and (Z) the insurance provided by this plan will be excess over any othervalid and collectible insurance cover- ing the Rented Automobile. However, the irsurance 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 ¢ rentedwithout a driver. HOW TO FlLE A CLAIM UNDER EXCESS COLLISION DAMAGE WAIVER: In the event of a claim, written or verbal notice must beprovided as soon as reasonably possible. IFYOU HAVE ANY CLAIM RELATECI QUESTIONS, PLEASE CALL THE CLAIMS SERVICE CENTER AT 1~800•CLAIMS-0 (1-800.252.4670). You can also gdto the Company Web site (vvvvw.chubb.com), click an Report a Loss, select Acddent, Benefits and Life claims, selectthe appropriate farm, print out the claim form, fill out and maiLYdu can file a Bairn by mail or fax: Mailing Address: CHUBB GROUP OF INSURANCE COMPANIES CLAIMS SERVICE CENTER 6001NDEPENDENCE PARKWAY PO $OX 4100 CHESAPEAKE, VA 23327-4700 Fax Number: 1-500-30D-538 CLAIM PROCEDURE: The Insured must send the Company written notice of a claim, including the Insured's name ahd Polity number, within 90 dayr, after a covered loss occurs: If notice cannot be given within that time, it mustbe given as sogn as reasonably possible. To file a sworn Proof of toss; thelnsured 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 Agenry. • A copy of the paid claim presented by the automobile Rehtal Agency for the Collision Damage for which the Insured is responsible, -23- 9Zt6l09 1:36:44 PM i 'i +` "1 • Prdofof submission of the loss to, and the resultr of any settlement or denial by the applicable insurance carrier(s). • If no other insurance is applicable, a notarized statementfrom the Insured to that effect. Reminder: Please refer to'the Insurance Disclosures section. INSURANCE D15CLOSURES 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 cohtrad of insurance but is simply an informative statement to eligible Insureds of the principal provisions of the insurance. while in effect: Complete provisions pertaining to this plan of insurance are contained ih 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 polity differ, the policy will govern. ` Policy UnderwrittenBy Plan Administrator Federal InsuranceYompanyf`'Company") The Direct Marketing Group, Inc.:. a member of the 13265 Bedford Avenue Chubb Group of Insurance Companies Omaha, NE 6$16A 15 Mountain View Road; PO Box 1615 Warren, NJ 07061-1631 Master Policy Number: 990rr17-63 Effective date of benefits: Effective April 1, 2007, this guide replaces all prior disclosures, program descriptions, advertising, and/or brochures by any .party. Poliryholder and. Company reserve the right to change the benefits and features of these programs at any time. Cancellation: Policynolder can cancel these benefits at any time. or choose not to renew the insurance coverage for. all authorized Cardmembers. If Poliryholder does cancel fijlese benefits, you will be notified at least 60 days in advance. If the Company terminates, cancels, or chooses notto renew the coverage to Policyholder, you .will be notified as soon as is practicable; Insurance benefits will still apPlyfor any benefits you were eligible for prior to the date of such termmations, 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 inrtitutions. The United States is defined as the 50 United States, the District bf {olum6ia, American Samoa, Puerto Rito; 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 ifiyour Card privileges have been cancelled:. However, insurance benefits will still apply for anybenefit you were eligible for prior to the date that your Account is suspended or cancelled subject to the terms ahd condtions of coverage of your Cardmember Agreement. Transfer of rights or benefits: No rights or benefits provided under these insurance benefits may kie 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.ahy material fad 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 art Insured will'be void if, whether before or after a loss; the Policyholder br its subscribing organization(s) has concealed o¢ 24 a ,. t000M0 0280K_TL22AG0210_01361 _reader.indd 27-28 misrepresented any material factor circumrtance 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 Poliryholder or its subscribing organization(s) relating hereto. Addition of New Insureds: All eligible persons will be automatically insured undertfiisPoliry. Examination Under Oath: It is a condition of this insurance that the Insured and the Poliryholder; as often as 'may be reasonably required by the .Company, will submit, and within its power cause others to'submit; to examinations under oath and will produce for examination all writings, books of account; bills, invoices and other vouchers, or certified copies thereof if originals are lost, at such.reasonable time and place qs may be designated by the.COmpany or its representative, and will permit extractr 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 investigatidn of any loss or claim will be deemed a waiver of any defenseand such actsshall be deemed to have been made or done uvithout prejudice to the Company's liability. No Benefit to Others: This coverage will in noway 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 claim or right of action aggainst any individual, firm or corporation forsuch loss to the Company or subrogate or hold in trust all such nghts 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 '!s reasonably requested by the Company and to return to the Company any recovery to the. extent payment of loss has been made by the Company. Arbitration: Inthe eventof a dispute underthis policy, eitherthe 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 iS days, eitherthe Company orthe Insured may request fhatthe choice of arbitratorbe submitted to the American Arbitration Assgciation. The arbitration will ~e held in the state of the Insured's principal residence. GLOBAL TRAVELER'S HOTLINE TERMS AND CONDITIONS The Global Traveler's Hotline provides Cardmembers and their famrliei;a wide range of free travel assistance benefits. It is operated by AXA Assistance USA, Inc. Visit Discovercard.comftravei to learn more: Eligibility. You court be a Cardmember whose Account is in good standing, the Cardmember's spouse or dependent`thild traveling-with the Cardmember or an Authorized User of an Account in good standing, Third-Parry Charges. Global Traveler's Hotline is' not insurancersb you wi~l be responsible for all third-partyfees and expenses forservices requested, such as professional or medical fees. Availability of Services. Certain services may not 6e available in all areas. Call us at 1.800•DISCOVER (1-800-34736831 for assistance or if'you have questions shout a specific destination. Outside the U.5„ callus collecf at 1-801-902.3100, While AXA Assistance will make every reasonable effort to provide the services; neither AXA Assistance nor Discover Bank or our respective affiliates will be liable if a service is not provided br for any services that are provided by third parties. The services and these terms and conditions are subject to change without notice: _29. 12/15!09 1:36:44 PM i a~ EXHIBIT "C" ~; New Balance I Minimum Payment Due Account Number ending m 2342 ~~~~ ~ ;, $0.00 $2,744.00 ~~ Enter Amount Enclosed Below Payment Due Date ~ ~-~ July 25, 2010 3o SDSN6AOt oooa465 Go paperless and make your account SAMUEL SUNDI( information more secure with password- 129 N MARKET ST protected statements only you can access. MECHANICSBURG PA 17D55-3340 Learnmoieaidiscover.com/paperless. Address, e-mail or telephone change? <io towww.Discovencombr print change in space above. PO BOX 6103" ~Ilrnllrrnrl~r~~urlnrll CAROL STREAM IL 60197-6103 ir~iiriiuuniiir~niurir~inurliiiu,uiirllr,urllninli 44~~ tOpening Date: June 13, 2010 - __ , I„<iaa Dntec June 30. 2010 Discover More Card Account Summary Account number ending in 2342 Previous Balance $15,705.29 Payments And Credits - 15,705.29 Purchases + 0:00 Balance Transfers + 0.00 Cash Advances + 0.00 Interest Charged + 0.00 Fees Charged + 0.00 New Balance $O.OU .See Interest Charge Calculation section following transactions for detailed APR information Credit Line $14,500.00 Credit tine Available $0.00 Cash Advance Credit Line $10,800.00 Cash Advance Credit Line Available $0.00 Payment Information New Balance $0.00 Minimum Payment Dve $2,744.00 Payment Due Date July 25, 2010 Late' Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a late fee of up to $39.00 and your purchase APRs for new transactions may be increased up to the Penalty APR of 29.99% variable. Manage Your Account Online at www.Discover.com • Securely access statements and free online tools, pay bills online and track'arid view all transactions simply and easily • Make your money worth moreS^'t-find easy ways}o earn and redeem cash rewards • NEW! Access your account securely through your mobile phone I s to Contact Us Wa I 3 Eas y y itbaClC gOnUS' Ctl h 1. Access your accourit securely at www.Discoveccom S Anniversary Mont 2. Call1-804DISCOVER)1-800-347-26831 August Please have your Discover®card available. Opening Cashback Bonus Balance $ 0.00 3. Write to us at Discover, PO Box 30943, Salt Lake City, UT 84130 New Cashback Bonus This Period + 0.00 For TDD (Telecommunications Device for fihe Deaf) Cashback Bonus Balance $ 0.00 assistance, please call 1-800-347-7449. To learn more, log in nt wviw.Discover.<om and select Rewards Transactions trans. Past Data Date Payments and Credits -Jun 30 Jun 30 INTERNAL CHARGE-OFF $ -15,705,29 Frees TOTAL FEES FOR THI5 PERIOD $ 0.00 4nterest Chdrgerl ' TOTAL INTEREST FOR THIS PERIOD $ 0.00 2010 Totals Year-to-Date 00 $ 234 . TOTAL FEES CHARGED IN 2010 TOTAL INTEREST CHARGED IN 2010 1,647.17 Interest. Charge Calculation Your Annual Percentage Rate (APR) is t he annual interest rate on your account. ANNUAL PERCENTAGE BALANCE SUBJECT TO INTEREST CHARGE Current Billing Period: 18 days RATE (APR) INTEREST RATE $0 Purchases 24.99°0 $0 $0 $0 Cash Advances 24.99°0 V .Variable Rate Additional ImportanT Information - fmportant Iniormaiion. If there fs more than ore page rc rh(: billing .mtemenq :ee the 6a~k of ea<h page For adda~o~al Impodom f~form~Yor,. Continued on reverse side. D~J~®VER SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriff 1i of `wnt?rr??t 010 -ij Jody S Smith ? 0:r rnm Chief Deputy ' , rq- - Richard W Stewart oM cn? - Solicitor OFFICE CIr StiERtFP > 4.n C:) I : -n LD 1111h r Discover Bank _'+?! Cas?lNu?er -; vs. Samuel Sundy 2010-7089 SHERIFF'S RETURN OF SERVICE 11/16/2010 08:15 PM - Ryan Burgett, Deputy Sheriff, who being duly sworn according to law, states that on November 16, 2010 at 2015 hours, he served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Samuel Sundy, by making known unto Kerrie Miller, Daughter of defendant at 129 N. Market Street, Mechanicsburg, Cumberland County, Pennsylvania 17055 its contents and at the same time handing to her personally the said true and correct copy of the same. SHERIFF COST: $37.00 November 17, 2010 RYAN BURGETT, DE SO ANSWERS, RON R ANDERSON, SHERIFF (ri CountySuite Sheriff. Teleosott. Inc. 1 STOCK & GRIMES, LLP Attorney for Plaintiff BY: Edward Stock, Esquire I.D.#13657 804 West Avenue Jenkintown, PA 19046 (215) 576-1900 - ?• DISCOVER BANK COURT OF COMMON PLEAS r? 12 Reads Way CUMBERLAND COUNTY, PA t...ry New Castle, DE 19720 CIVIL ACTION - LAW -- Plaintiff NO. 2010-7089 " VS. SAMUEL SUNDY 129 N. Market Street C) Mechanicsburg, PA 17055-3340 Defendant (s) w M? r -= cxn'! C?i ' PRAECIPE FOR DEFAULT JUDGMENT ,CC3 -0 0-el TO THE PROTHONOTARY : n =C) C Enter Judgment by Default in favor of the C:) Plaintiff, Discover Bank, and against the Defendant(s), Samuel Sundy, for failure to Answer the Civil Action Complaint. Assess Plaintiff's damages in the sum of $15,705.29 in accordance with the prayer of the Complaint. DATE: 1/22/11 EDWARD ST UI W:k-61y.C018 04? ct dut>4 AFFIDAVIT OF NON MILITARY SERVICE Edward Stock, Esquire, being duly sworn according to law, deposes and says: (a) That the Defendant(s) is/are not in the Military or Naval Service of the United States or its Allies, or otherwise within the provisions of the Soldiers' and Sailors' Civil Relief Act of Congress of 1940 as amended; (b) That Defendant, Samuel Sundy, is an adult individual and resides at 129 N. Market Street, Mechanicsburg, PA 17055-3340. (c) That Defendant, , is an adult individual and resides at Affiant has ascertained the foregoing information by personal investigation and makes this Affidavit in due authority; and he understands that the statements herein are made subject to the penalties of 18 Pa. C.S. Sec. 4904, relating to unsworn falsification to authorities. I DISCOVER BANK COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff CIVIL ACTION-LAW VS. NO. 2010-7089 SAMUEL SUNDY Defendant(s) CERTIFICATION UNDER PA. R.C.P. 237.1 Edward Stock, Esquire, Attorney for Plaintiff, Discover Bank, certifies that he sent a copy of the attached Notice on December 7, 2010 by regular mail, to the Defendant(s) at the address at which the Defendant(s) was/were served with a copy of the Complaint by the Office of the Sheriff indicated by the court records. DATE: 1/22/11 EDWARD S C ESQUIRE Attorney for Plaintiff DISCOVER BANK Plaintiff vs. SAMUEL SUNDY Defendant(s) TO: Samuel Sundy 129 N. Market Street Mechanisburg, PA 17055-3340 Date: December 7, 2010 COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION-LAW NO. 2010-7089 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE, IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. LAWYER REFERENCE SERVICES COURT ADMINISTRATOR-CUMBERLAND COUNTY COURTHOUSE 4TH FLOOR, ONE COURTHOUSE SQUARE CARLISLE, PA 17013 (717) 240-6200 EDWARD STOCK, ESQUIRE Attorney for Plaintiff 804 West Avenue Jenkintown, PA 19046 (215) 576-1900 NAME AND ADDRESS CERTIFICATION I hereby request the Prothonotary to enter the within judgment against: Samuel Sundy 129 N. Market Street Mechanicsburg, PA 17055-3340 defendant within named, the last named address of the defendant or defendants being as shown above, and I hereby certify that the precise address of the Judgment Creditor is: Discover Bank 12 Reads Way New Castle, DE 19720 Plaintiff (Signature required for filing)