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HomeMy WebLinkAbout10-7366Stock & 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 C ~ '"'1 12 Reads Way CUMBERLAND COUNTY '"'~~ _ ~' ~ "'{ ~ New Casit3le, DE 19720 CIVIL ACTION -LAW ~~ ~ t rn v ~ vs. - ~Z,, .. ~ , ~ ~' N ~ ~7 ~ ~ A MARY STETS VL.G C. ~ ~~ ° -~i 15 Etter Road ~;~,~ .~ ~ Cam ~ Newburg, PA 17240-9134 ~ ~,~ -; G'~ ~ .CIVIL ACTION COMPLAINT YOU HAVE BEEN SUED 1N COURT. IF YOU WISH. TO DEFEND AGAINST THE CLAIMS SET FORTH IN THE FOLLOWING PAGES, YOU. MUST TAKE ACTION vJTI Fi[IJ TWENTY (20) DAYS AFTER 'THIS COMPLAIlVT AND NOTICE ARE SERVED, BY ENTER]~TG A WRITTEN APPEARANCE PERSONALLY OR BY AN ATTORNEY AND FILING IN WRITING WITH THE COURT YOUR DEFENSES OR .OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. YOU ARE WARNED THAT IF YOU FAIL TO DO SO THE CASE MAY PROCEED WITHOUT YOU AND A JUDGMENT MAY BE ENTERED AGAINST YOU BY THE COURT WITHOUT FURTHER NOTICE FOR .ANY MONEY CLAIlViED IN THE COMPLA]NT OR FOR ANY OTHER CLAIM OR RELIEF REQUESTED BY THE PLAINTIFF. YOU MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IlvII'ORTANT TO YOU. r YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO THE TELEPHONE OR THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 32 SOUTH BEDFORD STREET CARLISLE, PA 17013 1-800-990-9108 717-249-3166 O~'~ ~~ ~~~~ ' STOCK & GRIMES, LLP BY: EDWARD STOCK, ESQUIRE I.D. #13657 804 West Avenue Jenkintown, PA 19046 (215) 576-1900 DISCOVER BANK 12 Reads Way New Castle, DE 19720 Attorney for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW Plaintiff vs. NO. MARY STETS 15 Etter Road Newburg, PA 17240-9134 Defendant(s) CIVIL ACTION COMPLAINT COUNT I 1. Plaintiff, Discover Bank, is a banking institution organized under the laws of the State of Delaware and maintains a business address of 12 Reads Way, New Castle, DE 19720. 2. Plaintiff is engaged in interstate commerce and is subject to various federal laws and federal banking regulations; and, Plaintiff does not conduct business within the Commonwealth of Pennsylvania within the meeting of any statutes and/or regulations pertaining to foreign corporations. 3. Discover Bank is the issuer and owner of the Discover credit cards which are issued to consumers pursuant to an extension of credit agreement with them. 4. DFS Services, LLC is affiliated with and is the • servicing agent for the Discover credit card accounts for Discover Bank. It creates and maintains all of the records in connection with all of the activities and/or transactions regarding the Discover accounts, which records are maintained by DFS Services, LLC in the ordinary course of its business. DFS Services, LLC is authorized to execute the Affidavit attached hereto as Exhibit "A". 5. The Defendant, Mary Stets, is an adult individual residing at the address contained in the above caption. 6. At the special instance and request of the Defendant, and relying on information received from the Defendant, the Plaintiff issued a Discover credit card to the Defendant so that the Defendant could make purchases from various merchants who were authorized to accept the credit card from the Defendant in lieu of payment by the Defendant to the merchants. 7. The Defendant received the physical credit card issued by the Plaintiff, together with a Cardmember Agreement (extension of credit agreement), which agreement contains the terms and conditions governing the use of the credit card between the parties hereto. Plaintiff attaches hereto as Exhibit "B" a true and correct copy of the said Cardmember Agreement. 8. Thereafter, on sundry and various occasions, the Defendant, pursuant to the extension of credit agreement, used the credit card for purchases and/or other forms of credit, which credit and its terms are governed by the Cardmember Agreement attached hereto as Exhibit "B". 9. The Defendant ratified the terms and conditions of the Cardmember Agreement each and every time 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 the account. 10. Plaintiff believes, and therefore avers, that the Defendant's last payment in regard to their obligation was processed on January 19, 2010, 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 to the credit card account became accelerated. 11. Plaintiff attaches hereto as Exhibit "C" a true and correct copy of the last monthly statement of the account issued to the Defendant. 12. The present outstanding balance which is due on the credit account is $14,108.97; and, although repeated requests and demands have been made upon the Defendant by the Plaintiff to satisfy the balance, the Defendant is still in breach of the agreement and have failed to repay the account balance and debt due the Plaintiff. 13. In addition to the balance on the account as indicated above, the Plaintiff has incurred additional damages for attorney fees and costs and request payment of the same by the Defendant pursuant to the terms of the Cardmember Agreement. 14. Plaintiff, through its counsel's investigation, has determined .that the Defendant is not in the military service. 15. THIS COMMUNICATION OF PLAINTIFF'S COUNSEL IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. WHEREFORE, Plaintiff, Discover Bank, demands Judgment against the Defendant, Mary Stets, in the sum of $14,108.97, 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 Civil Action Complaint, as though the .same were more fully set forth in length herein. 17. Defendant by the use of the Discover credit card and the extension of credit received the benefit of the same which was given on the said credit account and has failed to make payment for the receipt of the said benefit. 18. As a direct result of the receipt of the benefit of the extension of credit understanding as above, the Defendant has been unjustly enriched in the amount of $14,108.97 to Plaintiff's • detriment. WHEREFORE, Plaintiff, Discover Bank, demands Judgment against the Defendant, Mary Stets, in the sum of $14,108.97, plus reasonable attorney fees, costs and pre-judgment interest in accordance with law. DATE: ~V ~ ~ ~ i i { ~ VERIFICATION The undersigned, EDWARD STOCK, ESQUIRE, hereby states that he is the attorney for the Plaintiff who is located outside this jurisdiction and in order to file the within document iri 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 r provided to him by the Plaintiff. , A Verification signed by the Plaintiff will be provided to Defendant or counsel for Defendant upon request:. ' The undersigns understands that false statements herein are made subject to the penalties of 18 P.A.C.S..A. § 4904, relating to unsworn falsification to i authorities. EDW STOC i i ~ ~ -- i a I ' i i.4' , ~ ~~~ Exhibit "A" , ATTORNEY: ACCOUNT NUMBER: BALANCE: CARDMEMBER (S): STATE OF OHIO COUNTY OF FRANKLIN STOCK ~~85 $14,108.97 MARY STETS Robert Adkins, personally appeared before me, this day and after being duly sworn, according to law, upon his/her oath and says: I am a Legal Placement Account Manager for DFS SERVICES LLC., the servicing agent of DISCOVER BANK, an FDIC insured Delaware State Bank. THAT this affidavit is made on the basis of my personal knowledge and in support of Plaintiffls suit on account against the Debtor(s) THAT, in my capacity as Legal Placement Account Manager, I have control over and access to records regarding the Discover Card Account of the above referenced Debtor(s), further, that I have personally inspected said Account and statements regarding the balance due on said account. DFS SERVICES LLC. maintains these records in the ordinary course of business. THAT the annexed statement of account is a true and correct statement of what is now due and owing Discover Bank on the account, and exhibit A is a copy of the Cardmember Agreement between Discover Bank and the above referenced Debtor(s). The Cardmember Agreement governs the terms and conditions of the relationship between Discover Bank and the Debtor(s) in connection with the account. Based on my review of the account records, to the best of my knowledge and belief the above referenced Debtor(s) is not engaged in the military service of the United States and is a resident of the State and of the 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 Sworn and Subscribed before me, This day of Tuesday, September 21, 2010. NOTARY ~~ :. rl ,P )~~ ~~~ :. ~- .... //''~~ . K. RENEE LIUENGOOD Notary Public In and for the Sfabe of gtip AMy Carm~ss~ E~g T" ~t LN~~ ~X~i~( Exhibit "B" DISC VER' YOUR DISCOVER' ACCOUNT CARDMEMBER AGREEMENT ................Pages 1-13 The terms and conditions of your Account, including how we calculate finance charges, our fees and' an Arbitration of Disputes section. You have the right to reject the arbitration provision with respect to your new Account within 30 days after receiving your Card, as explained in the "Right to Reject Arbitration" section at page 13. PRIVACY POLICY .........................Pages 13-16 A summary of the personal information we collect, when it may be shared with others, and how we safeguard the confidential'rrysnd security of information. You may limit our sharing of such information with others as explained in section 4 of the Privaty Policy at page 15. BILLING RIGHTS ..........................Pages 16-17 Important information about your rights. and our responsibilities under the Fair Credit Billing AcC DESCRIPTION OF COVERAGE ...............Pages 18-25 The terms and conditions of the Scheduled Air Travel Accident Insurance and the Secondary Rental Car Collision Coverage that is provided at no charge to you when you use your Card to purchase airline I tickets or rent an automobile. GLOBAL TRAVELER'S HOTLINE ..................Page 25 The terms and conditions of this free travel assistance benefit. ~i1070 Discover Bank, Member FDIC TL22AG.0210 tODCMO 0280K_TL22AG0210_07361 _reader.intld 1-2 12/16A9 1:36:41 PM CARDMEMBER AGREEMENT Please read this Agreement carefully before using your Discovers Card Account n contains the terms and condttions of your Aoount, some of whidr may have dtanged from earlier materials provided to you. in the event of arty differences, this Agrcdnent shill control. We your privacy. See the Privary section onpage 10 and our Whrary pobCy fa additional information. The Arbitration of Dispute section on page 1 t includes a vva<ver of a number of rights, including t rrg' ht to a jury trial The Right to Reject Arbitration section on page 1 d the procedure you must follow ff you desire to reject the Arbitration of Disputes section. DEFINR1ON5 ...................•.•............................. 2 USING YOUR ACCOUNT .......: ................................. 2 Your Acceptance of this Agreement ............................ 2 Permitted Uses of Your Account ............................... 2 Prohibited Uses of Your Account ............................... 3 Purchases and Cash Advances in Foreign Currencies . . ............. 3 Cash Advances .............................................. 3 Balance Transfers ........................•................... 3 CredR Authorizations ........................................ 3 Authorized Users ..................... ...................•... 3 Unauthorized Use ............................... • ........... 3 Your Credit Unes .................... • ....................... 4 CHANGES TO THIS AGREEMENT ................................... 4 MAKING PAYMENTS...........• ................................. 4 Promise to Pay .............................................. 4 Monthly Billing Statement ...............................'..... 4 Month Payment Options ..............................'.'..... 5 Automatic Billing Arrangements ............................... 5 How We Apply Payments ..................................... 5 Minimum Monthly Payment .................................. 5 Skip~A-Payymment Offers ....................................... 5 Credit8alances .............................................. 5 FINANCE CHARGES ........................................:..... 6 How We Calculate Periodic Finance Charges ............... ~, ..... 6 How We Calculate Your Balances ............................... 6 Variable interest Rates......... • .............................. 7 DefaulCRate ................................................ 7 Cash Advance Transaction Fee France Charges .................. 8 Balaru:e Transfer Transaction Fee Finance Charges ............... . 8 Foreign Curtency Transaction Fee Finance Charges .........'..... 8 Minimum France Charge ..................................... 8 Account Set-up Fee France Charge ........................ • ... 8 FEES ........................................................... 8 Annual Fee ................................................. 8 late Fee .................................................... 9 Retained Payment Fee ............:....:............... 9 Retained Discover Card Check fee .......................1..... 9 Pay-ByPhone ............................................... 9 Research Fee .....................:...... .................... 9 DEFAULT AND CANCELLATION .................................... 9• Types of Default........ • .................................... 9 Consequences of Default ..................................... 9 Canc ation ..............:................................. 9 PRIVACY AND OUR COMMUNICATIONS WITH YOU ................. 10 Our Privary Policy ........................................... 10 Reporting to Credh Reporting Agencies .................... • . , . 10 -1- tODCMO 02BOK_Tl22AG02t0_Ot361 teetler.rtWtl 3.4 12/15/09 1:36:41 PM Our Communications with You ............................... 10 Releasing Information About Your Account .................... 10 Electronic Notices to You .................................... 10 Notices - Changes to Your Information .. . ............. . ....... .10 CLAIMS AND DISPUTES ......................................... .10 Merchant Disputes .......................................... .10 Claim Notices .............................................. .11 Arbitration of Disp~~es ...................................... i h bi ti .11 13 tra on ................................... R g t to Reject Ar . LEGAL INTERPRETATION OF THIS AGREEMENT ...................... .13 ...... Severabi l ity ..:..................................... . .13 Compliance with Interest Rate Limitations ................. . ... . .13 Goverrnng Law ............................................. .13 ASSIGNMENT OF ACCOUNT ...................................... .13 DEFINfilONS "Account" means your Discover Card Account 'Authorized User' means any person whom you authorize to use your. Accoum or a Card, whether you notify us or not `Card' means any one or more Discover Cards issued to you or someone else with your authorization. "Pridng Schedule" means the document accompanying your Card and listing the finance Charge rates that apply to your Accoum. 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 grho are also contractually liable under tha Agreement USING YOUR ACCOUNT Your Acceptance of this Agreement. The use of your Account or a Card by you or an Authorized User, or your failure to cancel your Account within 30 desyyss after receiving a Card, means you accept this Agreement, inducting the Arbttration of Dsputes section on pa a 11. You may, however, reject the Arbitration of Disputes sectiori as explained on page 13. Permitted Uses of Your'Account Your Account may be used for: • Purchases - to purchase or lease goods or services from participating merchants by presenting your Card or Account number or by usingg promotional checks, which we may furnish to you, in accordance whh such additional terms and conditiom as we mayoffer from time to time. • Cash Advances - to obtain cash advances from participating automated teller machines, finandal institutions or other laations, the purchase of lottery tickets, racetrack wagers, vouchers redeemable for cash or for casino chips, money orders, traveler's checks, savings bonds, foreign currency and wire transfers, or by means of checks whrch we may furnish to you, all in accordance with such additional terms and conditions as we may offer from time to time. • Balance Tramfers - to transfer balances from other ueditors or to make other transactions by means of balance transfer coupons or chekfcs, in accordance with su additional terms and conditions as we may offer from time to time. In addition, your Account may be used to guarantee reservations at participating establishments. You will be liable for gguaranteed reservations that are not cancelled prior to the time specfied by the establishment Your Account may be used for personal, family, household and charitable purposes. •2- tODCMO_02BOK TL22AG0210 01361 readecindd 6-6 Prohihited 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 under this Agreement or for any transactiom that are unlawful where you reside or where you are physically located when you use the Account to initiate the transaction ("Prohibited Traraactions"). Purchases and Cash Advances in Forek~n Currencies. M you make a purchase or cash advance in a foreign currency, it will be converted to US dollars usinyeither a governmerrt-mandated rate, a governmerrt-published rate or the interbank excrange rate, depending on the country and arrenry 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 Transaction Date as shown on your rtatement We dtarge a Foreign Currency Transaction Fee Finance Charge for each purchase made in a foreign currency as desuibed in the Foreign Cunenry Transaction Fee Finance Charges su•Rion on page e. Cash Advances. We may periodially offer you Promotional rates on cash advarxes for the time penod specfred in the offer, subject to the Defauh 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 dicks Each offer will contain a promotional rate, which r,ri8 be the Annuaf Percentage Rate that will apply to transferred balances for the time period specfied in the offer, wbject to the Defauh Rate section and may corrtain a Balance Transfer Transaction Fee Finance Charge fa each balance transfer made durirx~ the tens of the offer, as disclosed in the offer and as set forth in the Pricing Schedule, if app4cable. Balance transfers subject to the promotional rate are referred to as promotional rate balance transfers; balance transfers for which the promotional rate has expired are referred to as purchase rate balance transfers. Each offer vn71 contain an expiration date. ff you attempt to transfer balances by means of a check after the expiration date, we will treat the transaction as a cash advance. We will not make balance transfers attempted by means of a coupon after the expiration date. Credh Authodsatiorss. Certain transaQions will require our authorization Prior to completion. In some cases, you may be asked to provide identification. We have the right not to authorize a transaction for security or other reasons. Nso, it our authorization system is not working, we may not be able to authorize a transaction. We will not be liable to you if any of these events happen. Authorized Users. If you .want to cancel the authority of a current Authorized User to use your Account or a Card, you must not us and destroy any Card in that person's possession. You can noti us by telephoning 1-800-0ISCOVER (1-81)x347.2683), or by caching Discover, PO Box 30943, Soh Lake Gty, UT 841300943, None of your rights under this Agreement (other than to pay amounts owed) may be exerosed by any person not a party to this Agreement acting pursuant to a .power of attorney, without our separate written agreement (which we are not obligated to give). Unauthorized the. Prior to its use, each Card must be signed by the person to whom h is issued. H a Card is lost or stolen, or'dyau think that someone u using your Auount or a Card urithout your permissraa, notify us immediately. You can notify us by telephoning 1-800~DISCOVER (10x347-2683), or by writing Discover, PO Box 30943, Sak Lake Crty, Ui 8413x0943. You agree to -3- 12/15xJ9 1:36:41 PM assist us in determining the facts relating to any theft or possible unauthorized use of your Account or a Card and to comply with such praedures as we may require in connection with our, invertigation. Your Credit lines. We will advise you of your Account uedit line, We may impose a lower line that will ap~y to cash advances, referred to as the cash advance credit line. We may also impose a kswer line that will apply to balance transfers, referred to as the balance transfer credit line. You agree not to allow your unpaid balance, including Finance Charges and fees, to exceed your Account credit line. If you exceed your Account credit line, we may request immediate payment of the amount by which you exceed your Account credit line. We may increase or decrease your Account credit line, your cash advance credft hne or your balarxt transfer credit hne without notice. The credit available for your use may, from time to time, be less than your Aaount credit line. For purposes of determining your available credit, we reserve the right to postpone fa up to 15 business days reduang your unpaid balances by the amount of arty payment that we receive. Your available credit will not be increased by the amount of any vedit balance. CHANGES TO THIS AGREEMENT From time to time, we may, to the extent pemu~~ed by law, change any term of this Agreement, inducting, but notkmited ta, anyy fawnce dwrge rate, fee or method of tom any balance upon whidl the finarrce charge rate is assessed, a a any terrrs to this Agreement We wAd glue yrou nods of dw drange in the time and manner required by law, whrdraaludes 45-days adwnce written node in some dramxtances. In addtion, to the extent required bylaw, we vvdl offer you the ity to reject a change. For exs~~ippk, law requires, with certain exce at we offs you the opportuNty to reject an increase In a late fee or the edminadon of a grace period prior to the effective date of the change. N you reject a drazrgge in accodance vvitll the instnrcdons in d1e notice provided, we 1eriN dou your AuouM and you will no longer be abk to use t for furtfrer transactions You ®rt then pay the remaining balance under the ursdlanged term. We may also dsarsge any term of any product, service or benefit offered in conneAwri with your Account We wrll notify you as required bylaw or by the terms of the product, service or benefit MAKING PAYMENTS Promise to Pa% You agree to pay us in U.S. dollars for all purchases, cash advances and balance transfers uxluding applicable Finance Charges and other dwrges or fees, incurred by you or anyone you authorize a permR to use your Account or a Card, even 'd you do not notify us that others are using your Account or a Card, d you pay us in other than Us. dollars, we may refuse to accept the pa nt or charge your Account our cost to convert your payment to U.S. dollars. All checks must be drawn on funds on deposit m the U.S. You may not use a cash advance check, balance transfer credt or coupon, or any other promotional check drawn on any Discover Bank gedit card account to make payments on your Accoum. If your Auount is a joint Account, each of you agrees to be liable individually and jointly for the entire amount owed on your Accowt We can accept late Payments or al payments or checks and money orders marked payment in fidl' or Widt any otlxr restrictive endorsemerrt wthout losing any of our rights under this Agreement Monthly 8i1rng Statemerlt We will send you a billing statement after each monddy billing period in which you have a debit or credit balance, unless a- 10DCM0_028OK TL22AG0210_01361 reader.indd 7-8 we waive our right to do so as permitted by law The billing statement wid show all purchases, cash advances, balance transfers, Finance Charges and other charges or fees and all payments or other vedits posted to your Account duri the billing period. h wdl show your. New Balance, Payment Due Date and~inimum Payment Due as of the end of the biding period. d your prior months payment rs retiuned unpaid, your requkd Minimum Payment Due may be higherthan shown on your bitting statement. See the Minimum Monthly Payment section on page 5. Monthly Payment Options. You may at any time pay the ertire New Balance shown on your billing statement, but each month you must pay at least the Minimum Payment Due ~ described in the Minimum Monthly Payment section. All paymerts must be made in aaordance witfl the terra stated on to monthly bid'mg statemem, as wed as the payment atoll time hated in this sectiar, and we will credit your Auount m accordanu with those terms and this section. Payments received in proper form at our praessing fadlKy by SPM local time an any day will be credited as of that day. Payments received in proper form at our praesang fadlity after ~M local time w(11 be credited as of the next day. Automatk Billing Arrangenierts. tf your Account number andlor Card expiration date changes and our records indiote you have automatk billing establidled with a merchant, we will attempt to provide your new Account information to that merdtant. To ensure urumerrupted biding, we recommendthatyouverifythe merchar hasyournewAaountinformation You must contact the merdunt directly if you do not wrsh to continue the automatK billing arrangement How We Apply Payments. Each~bildng period, to the extent your payments exceed the Minimum Payment Due shown on your current billetg statement, we will apply these excess amounts in order of the Annual Percentage Rate applicable to the balance of each transaction cat ory (as referenced in the Finance Chazges 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, i m a manner most favoratde or convenient fa us In ad cases, we will a payments and credits in accordance with applicable law. Minimum Monthly Payment The Minimum Payment Due each billing ppeeriod will equal: (i) the greater of: • Sao; • 2X of the New Balance; or • current Periodic Finance Charges plus Late Fees plus SZl); (7 plus any past due amount We may also inducts some or all the amount by which you exceed your Account credit line. When we calculate the Minimum Payment Due, we may subtract from the New Balance certain fees added. to your Account during the biding period. The Minimum Payment Due. will be rounded up to the nearest dollar and will never exceed the New Balarlce. Skip-A-Payment Offers. We may from time to time allow you to not make a minimum monthly payment and will nrotify you when this option is available. H youtake advantage of this offer and do not make a minimum monthly payment, finance charges and any applicable fees will acwe on your Account in accordance with this Agreement and you must pay the Minimum Paymem Due for the following billing periods Credit Balances, We will refund any credit balance within seven business days from receipt of your written request H you do not request a refund, •s- 12/15109 1:36:42 PM we will automatically refund vedh balances greater than S 1 that remain in your Account after 6 months. HNANCECHARGES How We Calculate Periodic Finance Charges. We begin to impose Periodic Finance Charges on all transactions from the Transaction Date for the transaction shown on your billing statement, unless a transaction is posted to your Account after the close of the billing period in which it occurs, in which case we begin to impose Periodic Finanre Charge on thattransaction from the first day of the bilkingperind in which R is posted to your Account. We continue to impose Periodtc finance Charges until the date you pay your entire Mew Balance shown on your billing statement by making payments or receiving credits. However, rf you paid the New Balanre on }rour previous billing statement by the Payment Due Date shown on that billing statement, we will not impose Penodic Finance Charges on new purchases, that is, purchases first appearing on the curcent bilGrsg statement, or any portion of a new purchase, paid by the Payment Due Date on your current biing statement. We call this the "grace penod." There a no grace period on balance transfers a cash advances. Atmore fully desvibed in the section titled "How We Apply Payment;" we generally apply payments to your AaarM based on fire Annual Percentage Rate appliable to the balance of each transactlon cateeggory. This means that if you do not pay the New Balance on the current blling statement by the Payment Due Date shown on that billing statement, then, depending on the amount of your payment and the Annual Percentage hates on other balances, you may not get a grace period on new purdsases We sort your traruactions into groups of purchases, cash advances, and balance transfers and thers further sort the Vansactions within eafi group by their Annual Percentage Rate. For example, purchases subject to a promotional rate and purchases subject to a standard rate would be separate groups. We refer to these groups as transaction categories At the end of each billing period, we compute balances and Penodic Rnance Charges for ead+ day of the Mlling perod for each transaction category. We use the folowing equation to compute Periodic Finance Charges for each vansaction category: ,~ (Average Daily Balance) times (days in billing period) times (Daily Periodic Rate-. You may refer to the Finance Charge Summary on your billing statement for these amourrts. Then we add up the Periodk Finance Charges fa each transaction category to gel the total Periodic Finance Charges for your Account. The Average Daily Balance is shown as zero if, because of the grace period, no Periodic Finance Charges apply to the balance in a transaction category. The Daily Periodic Rate is 11365th of the <oresponding Annual Percentage Rate. How We Calctlate Your Balances. We use the Avenge Daily Balance (nduding newtramactions) method of calculating the balance upon which we impose Periodic Finance dtarges We compute the Average Daily Balance for each transaction category by adding up all the daily balances in a billing period for a transaction category and dividing the total by the number of days in the billing period. We compute the dal~r balance for each transaction category on each day by first adding the following to the previous dayY daily balance: transactions with a Transaction Date of that day as shown on your billing statement, unless the transaction a posted to your Account afterthe dose of the billing period in which h occurs, in which case the transaction will be added to the daily balance as of the first day of the oiling period in which h is ported to your Account, fees charged that -6- day and Periodic Finance Charges acwed on the previous day's daily balance; and by then subtracting any vedrts and payments that are applied against the balance of the transaction category on that day. In calculating the daily balance far the first day of the billing period, we consider the "previous day's dairy balance' to have been your balance for each transaction category on the lari day of your previous billing period. All fees charged to your Account are added to the standard purchase transaction category with the exception of Cash Advance Transaction Fee Finance Charges which are added to the applicable cash advance transaction category and Balance Transfer Transaction Fee finance Charges which are added to the appliwWe balance transfer transaction ategory. VadablelnterestRetes CMe or more DailyPeriodicRatesand corresponding Annual Percentage Rates that apply to a transaction category may be variable rates as set forth in your Priang Schedule or in arty specsal 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 Pridng Sdteduk as `Prime + (percentage prints)." For urposes of this Agreement, the Prime Rate is the highest rate of interest Fisted as the 'prime rate" in the Money Rates section of The Wall Street Joumaf on the last Madness day of the month. The Prone Rate a merely a pridrg index and does not represent the lovvest a best interest rate available to a borrower at arty bank at any given tjtme. tl you have a variable rate, your Annual Percentage Rate will increase or decrease when the Prime Rate changes. This dsange will be effective beginning vthh the first day of the billing period that begins during the same month as the change in the Prime Rate. An invease in the Annual Percentage Rate may increase your Minimum Payment Due. Defauh Rate. Each time that you do not make the Minimum Payment Due by the Payment Due Date we may, in accordance with applicable law. G) terminate the availability of any promotional Annual Percentage Rates on new trargactions; and (ii) invease your Annual Percentage Rates for new transactions to variable Default Rates. Each new variable Defauh Rate for a new transaction is determined adding up to 5 additbnal percentage points to the otherwise a treble Annual PercenUge Rau and will vary based on any changes in the Prime Rate. (For example, N the promotional purdwse rate was 2.99% and the rate for other purchases was 15.99% and you paid late once, the rate for all new purdtaset toukl invease up to 20.99% variable and vary thereafter with the Prime Rated When we first determine the variable Defauh flats, we use the Prime Rate effective for the billing period in which you p late. The variable Defauh Rates are determined in accordance with the Variable Interest Rates section. We will base your Default Rate an your creditworthiness and other factors such as your current Annual Percentage Rates and your Account history. ff we increase any of your Annual Percentage Rates to a Defauh Rate, we wsli send you a notice, in accordance vvith applcable law, advising of (i) the date the new Defauh Rate will apply (thc 'Defeuk Rate Effective Date'), (i- the type of new transactions to which it vvitl be applied (rrote: the new Defauh Rate will not apply to any other transactions) and, (rT) your right to reject the new Defauh Rate. New transactions are those transactioru which either (i) have a Transaction Date, as shown on your Mlling statement of more than fourteen days after we mail or deliver the notice to you or, (iy 'd permitted by applicable law, were posted to your AcwuM after the current Defauh Rate Effective Date. Your Account vtnll not be wbject to a Defauh Rate for the first twelve billing periods after your Account is first opened. -~- i 10DCM0 02BOK TL22AG0210 07361 readecindtl 9.10 - 12715/09 1:36:42 PM ff your Annual Percentage Rate for purchases, balance transfers or cash advances was inQeased to a Defauh Rate, we will; to the extent required by applicable law, periodically review your Account to determine 'rf any of your Annual Percentage Rates should be reduced. Any reduced Annual Percerttage Rates on new and existing balances may be k5fferent and may be higher than your previous standard Annual Percentage Rates for purchases, balance transfers andlor cash advances or any promotional rate. Cash Advance Transaction Fee Finance Charges. Unless otherwise specified in a cash advance offer, we will charge you a Cash Advance Tromaction Fee FINANCE CHARGE of 5% of the amount of each new cash advance with a minimum Cash Advance Trarsaction Fee FINANCE CHARGE of S10 and no maximum. The imposition of Cash Advance Trarsaction Fee Finance Charges may resuk m an Annual Percentage Rate fa cash advances that is hu~her than the nominal Annual Percentage Rate. All forms of cash advances, inducting the use of Discover Card checks, regardless of the purpose fa which trued, are wbject to Cash Advance Transaction Fee Finance Charges. To obtain the total Finance Char eon cash advances fa each billing period, we add arty Cash Advance Transaction Fee Fnance Charges fa the biAing period charged under this section to arty Periodic Finance Charges calculated under the Periodic Finance Charges section for earls cash advance transaction category andadd up these amounts. Balance Transfer Transactlon Fee Finance Charges Unless otherwise spedfied in a balance trarufer offer, we will charge you a Balance Transfer Transaction Fee flNANCE CHARGE of 5% of the amount of each new halance transfer with a minimum Balance Transfer Transaction Fee flNANCE CHARGE of ft0 and no maximum. The imposition of Balance Transfer' Transaction Fee Finance Charges may result in an Annual Percentage Rate for balance transfers that is higher than the nominal Annual Percentage Rate. To obtain the total Fnance Charge on balance Vansfen for each billing period, we add any Balance Transfer Transaction Fee Fnance Charges for the billing period charged under this section to any Periodic finance Charges cakvlated -under the Periodk Fnance Chazges section for each balance transfer transaction category and add up these amounts. Foreign {urrenry Transaction Fee Finance Charges. We will charge you a Foreign Currenry Transaction Fee flNANCE CHARGE of 2% of the U.S. dollar amount of each purchase made in a foreign Currenry. The imposition of Foreign Currenry Transaction Fee Finance Charges may resuh in an Annual Percentage Rate fa 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 Currenry Transaction Fee Fnance Charges for the billirnngg period dwrged under this section to any Periodic Fnance Chazges caculated under the Periodic Finance Charges section for each purchase transaction category and add up these amounts. Minimum Fnance Charge. We wiB charge you a minimum FINANCE CHARGE of 5.50 for any billing period in which Periodic finance Charges of less than f.50 would otherwise be imposed. Account Setup fee Fnance Charge. tf you Pricing Schedule accompanying your Card includes an Account Set-up Fee, we vnll charge you a onetime Account Set-up fee FINANCE CHARGE in the amount indicated when we open your Account. FEES Annual Fee. If your Prdng Schedule accompanying your Card indudes an Annual Fee, we will charge you an Annual Fee m the amount indicated. We will charge you this fee when we open your Auount and atthe beginning of each anniversary year your Account is open. The Annual Fee is not g. refundable, except as provided by lava Late Fee. We will diarge you a Late Fee if you have failed, as of the Payment Due Date, to make the Minimum Payment Due that was required to be paid for that billing period. The amount of the Late Fee is based on the sum of all outstandirg purduues, cash advances,, balance transfers, other charges, other fees and Finance Charges at the end of the tiling period fa which we did not receive timely payment If the sum is 5250 a less, the fee is 519. If it is greater than 5250, the fee is 539. Returned Payment Fee. We will charge you a Returned Payment Fee of f35 earn time you pay us with a check or other instrument that is returned unpaid. Thrs fee will also apply if a debft transaction to a deposit account from which you have authoraed us in writing, electrorsiatly a sally to periodically deduct all or a part of an amourK you owe us under this Agreement is retuned unpaid. We will charge you thu 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 S35 each time we decline to honor a Discover Card cash advance check, balance vansfer check, promotional purchase check, or other promotional check. Pay-By~?Isone We may from time to time allow you to make payments by authonztng us over'the telephone to transfer a pay funds from a deposit account to your AcwuM. We well not charge you a hone fee. Researdr Fee. We may charge you a Research Fee of S5 for each c of a billlns statement or sales slip that you request However, we will rrot charge a fee d you request copies in mnnecuon with a billing error. n DEFAULT AND CANCELLATION types of Defauh. You are in default'rf you become insolvent; if you file a bankruptcy petition a hare one filed against you; 'd we have a reasonable belief that yyrorouu are unable or unwilling to repay your obfigatiom to u~ if you are dedared incompetent by a court or ff a court appants a guardian for you a a conservata for your asset; if you die; rf you fail to comply with the terms of this pgreemertt, mduding failing to make a required payment when due, exceeding your Account aedit hru: a using your Card or Accourtt for a Prohibtted Transaction; or 'rf you fail to make a required payment when due on any other account you have with us. Consequences of Defauh. H you are in default, we may decfaze the entire balance of your Accourrt immediately due and payable vathout notice, ff we refer the cogection of your Account to an attorney a employ an attorney to ' represent us with regard to recovery of money that you owe us, we may charge you reasonable attorneys' fees and wurt a other collection costs as permitted by law and as actually incurred by us, inducting fees and costs in connection with any appeal. We may delay enfacng a not enforce any of our rights under thu Agreement witfwut losfhg a waiving any of them. Cancetlation. You may cancel your Account by notifying us in writing or by I telephone and returning a destroying every Card and unused Check that we have provided you. You can notdy us by telephoning i-800.DISCOVER (1-800.347.2683), a by cartingg Discover, PO Box 30943, 5ah Lake City, UT 84130-0943.Of course, you vriN still be responsible to pay any amount you owe us accordmg to the terms of this Agreemerit. N your Account is a 'oint Accourit, either Cardmember may cancel the Account, but you will ~th remain respaisible to pay any amount owed to us according to the tame of this Agreement We may cancel or suspend your Account at arty time without notice. We may Choose not to renew your Aaoum (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. 9 10DCM0 02BOK_TL22AG0210 07361 reeder.indd 1142 ~ 12115N9 1:36:42 PM PRIVACY AND OUR COMMUNICATIONS WITH YOU Our Privary Polic~C We may from time to time review your credit, employment and income records. We respect the privacy of information about you and your Account. Our Privacy Poly indudes a wmmary of the personal informatiort we cdlect, when it may be shared with others, how we safeguard the confidentiality and security of information and the steps you may take to limn our sharing of such information with others. Please read it carefully as it is part of your Cazdmember Agreement Reporting to Credit Repotting Agendes. As indicated in our Privacy Polity, we may report to aedrc reporting agendes and other creditors the status and payment history of your Account, including negative credit information. Late payments, missed payments or other defaults on your Account maybe reflected in your credit report We normally report to wch credit reporting agencies each month. N you believe that our report of your Account status ~s inaccurate or incomplete, please write us at the following address: Discover, PO Box 15316, Wilmington, DE 19850.5316. Please include your name, address, home telephone number and Account number. Our Communications whh You. You agree that our personnel may listen to or record telephone calls between you and our representatives without additional notice to you, induding but nest limited to calls we make to rolled debts. We may use arty medium permitted bylaw, induding but not limped to mail, live telephone calh, automated telephone equipment, prerecorded telephone calls, e-mail and ells to your cell phone to contact you about your Account or to offer yyoou products or services that may be of value to you. H you prefer not to be contacted in one or more of these ways, you must either telephone us at 1.800-0ISCOVER (1-800.347-2683) or write to us at Discover, PO Box 30961, Sah Lake City, UT 30961-0961. Releasing Information About Your Account We provide various methods by which you can obtain information about your Account. We will on release such information to you, any Authorized User that our records indicate is an authorized buyer on your Aaount, and arty other person with your prior permission, in addition to as provided in our Privary Polx or as requved by law. Our security measures cannot insure against unauthorized inquiries. You agree that we vdll not be responsible for the release of information to anyone who, evenrf without your autfwrization or permission, has gained possession of a Card a has teamed other identifying characteristic about you such as your personal identffication number, Account number or soda) security number. Electronic Notices to Yar. We may offer you the oppo[tuniry to receive certain notices from us electranrcally rather than ffirough the mail, induding monthly baling statariefsts and dsanye of terms natitxs. The terms and condrtiors for receiving these electromc communications will be described in the offer. Notices -Changes to Your Information. If you change your e-mail address, mailing address or telephone number you must notify us of your new address or telephone number within 15 days: You can notdy us by telephoning 1.800-DISCOVER (1.800.347-2683) or by writing Discover, PO Sax 30943, Salt Lake City, UT 84130.0943. M your Account is a Iomt Account, any notice we mail to an address you have provided for the Account will serve as notice to both Cardmerrifrers. CLAIMS AND DISPUTES Merchant Dispttes. We are not responsible for the refusal of anyone to accept or honor a Card or to accept checks that >nre have provided you. If a merchant fails to provide your purchase to your satisfaction and you - t0- request a uedit to your Account, we will investigate the dispute. if we resolve the d'apute in your favor, we will issue a credit to your Account and you wtll be deemed to have assigned to us your daim agatrtst the merchant oodles arty third party for the vedited amount Upon our request, you agree to provide us with written evidence of such assignment tlaim 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 aapppplication, the relationships which recap from your Account or the enforceabillry of the Agreement or any prior agreement; before inhiating, joining or participating m any judicial or arbitration proceeding, u either an individual litigant or member of a class ("Proceeding"), the complaining Notice")ales tleasthl5 doer party: (1) a written notice of the claim (°Claim ys before initiating any Praeeding, explaining in reasonable detail the nature of the daim and any supporting facts; and (2) a reasonable good faith opportunity to resolve the daim without the necessity of a Proceeding. This includes any daims involving our parent corporaUOn, subsidiaries, affiliates Gnduding; without limitation, DFS Services LLC), predecessors. wct:essas, assigns, as well as the officers, directors and employees of each of these entities. Any tlaim Notce shall be sent to us at Discover, PO Boz 3024, New Albany, OH 43054 (or such other address as we shall subsequently provide to you) (the °tlaim Notice. Address') or to you at your address appearing in our rewrds or, if you are represented by counsel, to your attorney at your attorney's office. Arbtration of Disputes, Agreement to arbitrate. In the event of any past, present or future daim or dispute (whether based upon contract tort, statute, common law or equity) between you and us azising from a relating to your Account, arty poor aaount you have had with us, your apppplication, the relationships which result from your Account or the enforceabilhy or scope of this arbitration provision, of the Agreement or of anypnor agreement, you or vve may elect to resolve the davn or dispute by binding arbitration. IF EITHER YOU OR WE ELECT ARBITRATION, NEffHER YDU NOR WE SHALL HAVE THE RIGHT TO LITIGATE THAT CLAIM AV COURT OR TO HAVE A JURY TRIAL ON THAT CLAIM. PRE-HEARING DISCOVERY RIGHTS AND POST HEARING APPEAL RIGHTS WfLL BE UMTIED. NEITHER YOU NOR WE SHALL BE ENTITLED TO JOIN OR CONSOLIDATE CLAIMS IN ARBTfiL4TION BY OR AGAMST OTHER CARDMEMBfRS WITH RESPECT TO OTHER ACCOUNTS, OR LITIGATE IN COURT OR ARBRRAIE ANY 01UM5 AS A REPRESENTATIVE OR MEMBER OF A CLA55 OR IN A PRIVATE ATTORNEY GENERAL CAPACITY ('Class Action Waiver"). Notwidutanding anything else to the contrary in this arbitration provision, only a covet, and not art arbitrator, shall determine the validity and effect of the Class Action Waiver. Even 'rf aN parties have opted to litigate a daim in court, you or we may elect arbtration vvith respell to any daim made by a new party or any new daims later asserted in that lamuit and nothing undertaken therein sfaall constitute a waiver of any rights under this arbitration provision. We will not invoke our right to arbitrate an individual daim you briny in small daims court a your state's equtvakrrt court, ff any, unless such achon is transferred, removed or appealed to a different court. Governing Lawand Rules. Your Account involves interstate commerce and this provision shall be governed by the Federal ArbiVation Ad (FAA-. The arbitration shall be conducted, at t e optiat of whoever files the arbitration claim, by either the American Arbitration Association (AAA) or JAMS in accordance with their procedures in effect when the daim is filed. For a copy of their procedures, to file a- claim or for other information, contact AAA at 335 Madison Ave., Floor 10, New York, NY 111.5905, -tt- 10DCM0 0280K TL22AG021o_0136Y_reader.indd 13-14 72/t5N9 1:9fi:42PM www.adrorg (phone 1-800.778.7879} or JAMS at 620 Eighth Ave, Floa 34, New York, NY 70018, www.jamsadccom (phone 1-BW-352-5267). No other arbitration forum will be permitted, except as agreed to pursuarrt to either the Charges to this Agreement section or a writing signed by both Parties. H neither AAA nor JAMS is able or wi8ing to serve as the arbttration administrator and we and you are unable to agree on a replazement administrator or arbitrator, then a court of competent jurisdiction will appoint an administrator or arbitrator or arbitrators Gn the case of an appeal to a panel of three arbitrators as desvibed below). Unless cortsemed to by all parties, no arbitration may be administered by any administrator or arbitrated by any arbitrator that has any formal or informal polity, rule or procedure that is incontinent with or purports to override the terms of this section. ff we elect to resolve a claim or dispute by binding arbitration and the arbitrate 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 andie other arbitration costs, we will be responsible for paying or reimbursing such costs and fees if awarded by the arbitrate. fees and Costs. At your written request, we will advance any arbitration filing, administrative and hearing fees which you would be required to pay to pursue a claim or dispute as a resuh of our eleRing to arbitrate that claim e dispute: Send reQuests to Discover, PO Box 30421, Sak Lake qty, UT 84130-0421. The arbrtratar will deride who will ultimately be responsible for paying those fees, You will only 6e responsible for paying or reimbursing our arbnration filing, administrative or hearing fees to the extent you would have been responsible for paying "attorneys' lees and court a other collection costs" had the action proceeded rn courtAn no everrt will you be required to pay any fees a cans incurred by us in connection with an arbitration proceeding where such a payment a reimbursement is prohibited by applicable law. Hearings and Dedsions, Any arbitration hearing will take place in the federal 'udidal district where you reside. The arbitrator shall follow appGcab~e wbstantive law to the extent conisteht with the FAA and appUcable statutes of limitation and shall honor claims of privilege rgcognized at law and shall be authorized to award all remedies permitted by the substantive laws that would apply if the adios were pending in court. If requened by any party, the arbitrator shall write an opinion containing the reason for the award. The arbitrator's decision will be final and binding except for any appeal rights under the,FAA-and except that if the amount to controversy exceeds 5100,000, any party may appeal the award within 30 derys to a threearbitrator panel, whuh shall review the award de now. Unless apdiraMe taw provides otherwise, the appealing party will pay the cost of tt~hee appeal, regardless of its outcome. However, we Nell mnssder in good faith any reasonable request for us to bear the fees charged by the arbitration administrator and the arbitrators in connection with the appeal. Judgment upon any award by the arbRrate may be enforced. in any court having jurisdtdlon. Other Beneficiaries of this Provision. Our rights and o61i9ations under this arbitration provision shall inure to the benefit of and be binding upon our parent corporations, subsidiaries, affiliate firtduding, without IimitaLon, DFS Services LLQ, predecessors, suaessor; assigns; as well as the officers, directors and employees of eadt of these entities, and wUl also inure to the beneftt of any third party named as a co-defendant with us or wfth any of the iwegoing m a claim which is wb11'ed to this arbitration provision. Your rights and obligations under this arbivation 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 Acmunt as wdl as voluntary payment in full by you, arty 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 Aejed Arbitration You may rcjact the Arbitration of Disputes by p%vifd~hg us a notice of rela~0n within 30 days after ceivirsg owing address: Dauover, PO Box 30938, Salt Lake Gtg UT84130-0938. ff you were previously sub~'ed to arbitration wkh respell to any account with us, this right to reject arbitration will not apply to you. Your reJedion notice must include your name, address, telephone number, Acmunt numbe- and signature and must not be sent with any other correspondence. Callktg us to indiate that you reject the Arbitration of Disputes section a sending a rejection notice in a manner or format that does not comply with all appBcabk requirements inuffiderrt notice. In order to process your notice, we require that the notice be provided by you directly and not through a third party. Rejection of arbitration will not affect your other rights a responsibOrtks under this Agreement or your obligation to arbitrate disputes under any other account as to which you and we have agreed to arbitrate disputes. M you do not send a rejection notice, you will be obligated by the Arbitration of Disputes section with respect to this and arty pria account you have had with us, even'rf you have previously sent a rejection notice with respell to that prig account LEGAL INTERPRETATION OF THIS AGREEMENT Severabt'Aly, H any part of this Agreement becomes unerdeceabie, it will not make any other part unenforceable, except that if the pass Action Waiver set forth above in the Arbitration of Disputes sections invalidated in any praeeding in which you and we are involved, then the Arbitration of Disputes section will be void with reaped to that proceeding. CanpBance with krtarest Rate Limitatlwts. We intend that this Agreement will comply with applkable interest rate limitations. You wiA not be required to pay Finance gtarges a other drarges at a rate that a greater than the ma>omum amount permkted by law. ff tt is ever finally determined that, but for this section, the Finance Charges or other charges under this Agreement would exceed the maximum lawful amount, the finance Charges and other dwrges will be reduced to the maximum lawful amount Any excess amourrt that you have already paid wiN be used to reduce the autstandirs9 balance of your Account a will be refunded to you by mean of a dredc m our disaebon. Governing Law: This Agreement and any claim a depute adsiny out of this Agreerttertt veil be governed by appGabk federal law and, to the extern state law appUes, Delaware law. ASSIGNMEPJf OF ACCOUNT We may sell, assign or transfer your Account or any portion thereof without notjceto you. You may not sell, assign ortransferyour Account withoutfirst obtaining our prior written consent PRIVACY POLICY We are required by federal law to provide you with a Dopy of our Privary Policy each year, N you have previously notffrcd us ~sout your privary preferences, as described in Section 4, it is not necessary to do so again unless you decide to dsahge your preferences. •13- i0DGM0_0260K_TL22AG0210 01361 reaaecinCd 1516 72/15/09 7:36:43 PM We Respect Your Privacy Our mission is to provide you with superior products and services, along with the peace of mind knowing that the security of your personal irdomsation is our top priorrry We understand your concerru about guarding information about you and your Aaount We want to aswre you that vve have taken steps, and will continue to take steps, to safeguard that information. This Privary Polity decriba our efforts to meet these objective, h inductee a summary of the following important information: • A listing of the personal information we collect; • The circumstances in which we may share information with others; • The ways we safeguard the confidentiality and security of information; and • The steps you may take to limit our sharing of such information with others. See Section 4 for complete details. Please read our Privary Polity rarefulty. h will help you understand how we co8ed and share information. 1. What Personal Information Do We CoUectt To serve you better and manage ors business, it is important that we collect and maimain xcurate personal information about you. We obtain this information from applicationt and other forms you wbmh to us, from your dealings with us andd others, from consumer reporting agendes, and from other source, such as our Web sites. For example: • We may obtain information such as your name, address and date of birth from applications and other forms you submit to us. • We may obtain information such as Account balance, payment history, your use of your Account and the types of service you prefer from your transactions and other dealings with us and others • We may obtain information such as the balances of your loans with other lenders and your payment history with others from consumer reporting agenda. • We may obtain information srxh as your Internet service provider, your email address, your computer's operaung system and Web browser, your Web site use and your product and service preferences from your visits to Web sites 2 B Personal hforination Shared wide Others? We limit the sharing of informatics with others. Marry of the offers you receive for products and service are provided directly to you from us. for example, a retailer that xcepts the Discovery Card may come to us with a special offer for Cardmembers, such as a discount certificate or product upgrade. After careful consideration of the nature of the offer and the compazry we an71 create a list of Cardmembers who may be interested in the offer based on certain dsazacteristirx We will send the offer directly to those Cardmembers on behalf of the reta7er by, for example, iriduding an insert in their momhly billing statement or mailing the offer ourselves. We contrd the information used to make the offer, we do not share the list or any information ~SOUt our Cardmembers with the retailer. However please understated that 'd you do receive this type of offer from us and choose to take advantage of it the retailer may then learn information about you because only Cardmembers with certam dsaracteristirs received the offer. There are, fsowever, drwmstanca in which we may share the information we tolled about you, as described in Section 1, vvith other companies in order to provide you with aaess to products and services and to service your Account effectively, as detailed below. We require these companies to adhere to our privacy standards and to use this information only for the -ta- limited purpose for which k was shared. We do not allow them to disclose it to others without our prior approval. a. Sharing Personal Infortnatlon with Our Corporate Family Our corporate family offers a variety of products and service that can help you manage your finances. In ceder to provide You with access to these products and service, we may share the information we cdtect about you, as described in Section 1, with other members of our corporate family. These companies include financial service providers that offer credit protection, card servicing and payment processing services. b. Sharing. Personal information with Non-Affiliated Parties for Marketing Pwposa We may share the information we celled about you, as described in Section 1, with non-affiliated third parties, including those that xcept the Discover Card, in order to provide you with xcas to products and services offered directly by these consPanies that may be of value to you. These companies indude finandal sernce providers, wch as insurance companies, and non- finarsdal companies, wch as retailers c Sharing Personal Information vvitls Others We may share the informaton we colect about you, as described in Section 1, with canpazsia that perform wpport or marketing service on our behalf, such as mailing, market research and data processing; other finandal irsstitutiorss with which we have ' im marketing agreements; or companies that are our partners for co~brand vedit card p~rogryams or reward programs. We may also share suds information as perm b law. 3. Wow Do We Protect the CeitfldmtiaUty, Seatity and IrKegrity of Information about You? We maintain physical, electronic and procedural safeguards to protect the information we coUecf about you. Aaess to suds information te restricted to individuate who need R in order to service your Account c provide products and smiica to you, and who are trained in the prt~ser handlitg of such information. Empbvees who violate these confidentiality requiremersts are subject to our sscsplinary process. Where third parties provide support services, we require them to conform to our pr'wary standards. h is important that the information we maintain about you is accurate and complete. ff you see information in your monthly billing statements or eteevvherc which suggests that ors information is incomplete or inaccurate, please write to us at Discwrer, PO Baz 309M13; Sah Lake City, UT 841340943 so that we ®n update this informaton. 4. How Can Yau Limit Sharing of Mformation About You? We respect your privacy and pffer you droka as to whether we may share information about you wrth others You have the option to tell us rsotto shaze the irdortnation m collect about you, as described in.Sectics 1, with norr affiliated third parties You ateo have the option to tell us not to share the information ttire collect about you, as described in Section 1, with companies in our corporate family. If you indicate a preferende for either of these optsons, please rsderstand that you may cwt receive offers for products and service provided by other mrnpania that cook! help you kswa your costs, ma>omize your finandat resources, or manage your finance. To indiote your preferences ease call us at 1-864225.5202 c wdte to Discover, PO Box 30961, Lake l7yr, UT 841340961. M you have previously nodfled to about your prltrag preferences, it is not necessary to do so again unless you deeds to dsange your preference. Your written request should indude your name, address, telephone number and Account number(s) and should not be sent with arty other correspondence. In order -ts- 10DCiaO 02801(_TL22AG021 o_01367 reader.indd 17-1a 72/15N9 1:36:43 PM to process your request, we require that the request be provided by you directly and not through a third parry. 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 m effect unU'I you notify us otherwise. We will hones your requert and not share this i amation exce t az permitted by law. For example, federal law permits us to share information about you with consumer reporting agenoes, service providers and finandal institutions with which wehave joint marketing agreements. ff you are a new Cardmember, we will not share any information about you, except az permitted by law, for thirty days after we provide this Policy to you in order to giveyou an opportunity to inform us about your preference. If yrou are an extsUng Cardmernber, please understand that you. may continue to receive marketing offer directly from other companies that were already in production prior to the processing of your request This Privacy Policy is provided to the pprimary Cardmember listed on the Actourit However, any foiM Cardmember has the right to notify us about preferences and we will treat that request as applying to the, entire Account We do not share information about former customers, except as permitted by law. This notification supersedes all previously issued Privary Policies. We reserve the right to amend the Privacy Policy from time to time and uve wiR notify youd we do so. This Privacy Policy is provided to you by Discover Bank and its subsidiaries, which currently include GTC Insiuance Agenry, Inc and Discover Products Inc Unless otherwise specifred, R applies to the family of Discover Cards fa consumers and the products. and services offered in connection with those Cards, inducting tRE Wallet Protection card registration service (with the exception of any information registered in connection with the service, which will not be shared). h is part of your Cardmember Agreement and provides a further explanation of how we collect and share information. You may have other nghts understate laws that apply to this information. Pksase note that you wig also receive privycy notke for other credR aril accounts you have,with us, az well az other financial products and services provided to you by us and our affiliates, You will need to indicate your preferences for each of these separately as disdosed in the notice. Vermont Residents - Your state law requires financial institutions to obtain your consait pnor to sharing information about you with others. Except az permitted by law, we wBl not share information we collect about you with non-affiliated third partie a companie in our corporate family unless you call us at 1.80aDI5COVER (t-800.347-2683) and authorize us to do so. Cal'itania Residents - Your state law requires financial institutions to obtain your consent prig to sharing information about you with non-affiliated thud parties. Except az permitted by law, we will not share information we co8ect about you with non-affiliated third parties while you are a resident of Cal'rfomia. I Your Billing Rights KEEP THIS NOTICE FOR FUTURE USE This notice contains important information about your rights and our responsibilities under the Fair CredR Billing Ad 1. Nosily Us in Case of Errors or Qircstions About Your Bi!! H you think your bill is wrong or if you need more information about a transaction on your tall, write us an a separate sheet of paper at the address listed on your bill for Notice of Billing Enon. YVrite to us az soon as possible. We must hear from you no later than 60 days after we sent you the first bill • 16- 10DCM0_02BOK_TL22AG0210_01361 reader.indd 19-20 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 ena and explain,d you can, why you believe there a an error. tf you need more information, describe the Rem you are not sure about ff you have authorized us to pay goes credit card bill automatica8y from your savings a drecking account, you an stop the payment on any amount yyou think u wrong. To stop the payment, your letter must reach us three buusiness days before the automatic paymerrt is sdteduled to occur. 2. Yow Rights and Our Responstb!lities After tNe Receive Your Written Notice We must advwwledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must either correct the error or explain why we believe the bill was coned After we receive your letter, we cannot try to collect any amount you question or repoR you as delinquent We ran continue to bill you fa the amount you question, including finance charges and we can apply any. unpaid amount against your Account credit limit You do not have to pay a~ questioned amount while we are investigating, but you are rtill ob igated to pay the parts of your bill that are not m question. N we find that we made a mistake on Your bill, you will not have to pay any finance charges related to arty questioned amount ff we didnY make a misttake, you may have to pay tl+e finance dwrga, and yes will slave to make up any mined payments on the questioned amount In either case, we will send you a statement of the amount you owe and the date that R is due. If you fail to pay the amount that we think you owe, we may report you as delinquens However, if our explanation does not satisfy you and you write us within ten days telling us that you sdB refuse to pax five must tell anyone we report you to that you have a question about your bill And, we must tell you the nine of anyone we reported you to. We must tell anyone we report you to that the matter has been settled between us when it finally is. If we don4 follow these rules, we can't co11eR the first S50 of the questioned amount, even if your bill was tarred 3. Special Rrde forCredit Card Purdrases ff you have a problem with the quality of gooods a services that you problcm with themhant, you my ha enthe~rightrtn to to pay the remaining amount due on the goods or services. There are two limitations on this right: (a) you must have made the purdiase in your home state or, if not within your hone state, within 100 miles of your anent mailing address; and (b) the purchase price murt have been more than 550. These limitations do not apply if we own a operate the mercharit or ff we makd you the advertisernerit for the goods or services. 4. Purchases Made with Checks or Cash Advances The Speoal Rule fa CredR Card Purchases does not apply to purchases made with a balance transfer check, ash advance a pranotional purchase check. Therefore, if you have a problem with the quality of goods a services that u purdlased with a balarue transfer d1ed4 promotional purdlase chec~y ash advance check a the proceeds of a cash advance, you do not have the right to wRhhold payment of the amount due. .11_ 12/15/09 136:43 PM DESCRIPTION OF COVERAGE SCHEDULED AIR TRAVEL ACODENT INSURANCE Discovers Cardmembers are provided wfth 5500,000 Scheduled Air Travel Accident Insurance.' You, your Spouse, Domestic Partner or eligible Deppeendent Children fa whom a txket was purchased on your Card (as defined below} will be automatjaAy insured against Accdental Loss of Life arising from and occurring on a Covered Tnp while you, your Spouse, Dbmestrc Partner or eligible Dependent Children fa whom a ticket was purchased on your Card are riding as a passenger in or enteringg, exiting or being struck by a Scheduled Aircraft a a conveyance operated by a military trarnport sernce or riding as a passenger in or entering or exiting any conveyance licensed to carry the pubhc for a tee and while traveling directly to o from the airport immediately preceding the departure tlf a Scheduled Aircraft on which the Insured Person has purchased passage and immediately 'ollo:ving thr• arival :;f ~ Schedule Avrra h on ~.vhich the Insured Person w•as a passenger. *Coverage is underwritten by Federal Insurance Company, a member insurer of the Chubb Group of Insurance Companies. Certain IimRations and exclusions apply. PLAN fEATURES THE BENEFRS: The full Benefit Amount (5500,000) is payable for Accidental Loss of Life. The Loss must scar within one year of the Auident MAXIMUM UMR OF INSURANCE: ff more than one Insured Person suffers a Lass in the same AcddeM, the Company will not pay more than the maximum limit of insurance (520,000,000) per Accident ff an Acddent results in Benefit Amourrts becoming pay~le, which when totaled, exceed the applicable IimR of insurance shown above, the maximum limit of insurance will be divided prrgsortionally among the Insured Persons, based on each applicable Benefit Amount. k the event of muhiple Auiderital deaths per Account arisingg from any one Acodent, the Company's liability fa all such Losses will be I'imited to a maximum limit of insurance equal to two times the app~~icable Benefit Amount fa Loss of Life. Beneftts will be proportionately divided among the Insured Persons up to the maximum limit of insurance. DEFBBTIONS: ' means a sudden, unforeseen. and unexpected event happening by chance; and includes unavoidable exposure to elements arising fran a covered Hazard. Accdental Badiv I~'urvfiesl means bodily injury which is Acddental, is the direR source of a Lou, is independent of disease, illness or other cause and occurs while this policy is in force. Auount means a Card atttlunt Benefit Amgtrnt means the Loss amrwnt at the time the entire cost of the passenger fare is charged to an Aaount Car +neans the Discover Card. Ca a means the holder of the Card whose name appears on the credit card. Comoanv means the Federal Insurance Company. Co means travel on a kheduled Aircraft when the entire cost of the passenger fare for such transportation, less redeemable certificates, vouchers or coupons, has been charged to the Insured Person's Account Dstld-or Children meam thore children, including adopted thi dim and those children placed fa adoption, who are primarily dependent upon the Insured Person for maintenance and support and who are: (1) under the age of 19 and reside with the Inwred Person; (2) beyond the age of 19, permanently menially a physicaly challenged and incapable of self support; a (3) under the age of 25 and classfied as full-time students at an irstitution of Mgher learrnng. Qi means a person who: {1) is at least 18 years of age and competerrt to eater iMO a contract; (2) it not related to the Insured Person by blood; (3) has exclusively lived wRh the Inwred Person for at least one year prig to the date of enrollment (~) is not Iegady married or separated; and (5) as of the date of enrollment, has whh the Insured Person at lean two of the following financial anangements: (a) a joint mortgage or lease; (b) a joint bank account; (d jant title to a ownership of a motor vehicle a status as a jdnt lessee on a motor vehicle lease; or (d) a joint cred'R card account with a financial institution. Neither the Insured Person nor the Domestic Partner can be married to, nor in a avil union with, anyone else. H~r~ means the covered circumstances for which this insurance is provided as stated in Section III of the Declarations, Hazartls, and described in the Hazards form, as described do page 1 of this Desaiptidn of Coverage. J, means all Cardmembers, their spouses, Domestic Partners and Dependent Children, as well as authorized users of the Account I,gg means the Loss of life. Loss of Life means death, including clinical death determined by the local governing medical authorities. means DFS Services LLC, the entity responsible fa the payment of premium. S means an aircraft owned andlor operated by a Sdu u ed Airline. means an avline which is either of Unted States regirtry and certl 'ed by the United States govemmerrt to orry passengers on a regularly scheduled b~is or of foreign register and approved by the lJnhed States government and the appropriate foreign authority. lp(~ means hostilities following a declaration of War by a government authority, ff there is no declaration of War, then (1) armed, open and continuous hostilities between two countries or (2) armed, open and continuous hasUTrties between two faction, each in coitrol of territory, or claiming jurisrBctian over the site of the area of hostility. DISAPPEARANCE BENERfS: ff the kntred Person has not been found within one yyeeaarr of the chapp~arance stranding, sinking, wrecking or breakdown of any SchedukdAiraa tf a c~nviyance in whxh the Inwred Person was covered as an ocapant, it will be assumed, steed to all other terms of the policy, that the leisured Person has suffered Loss of Life covered under this polity. EXPOSURE BENEFRS: Accident includes unavoidable exposure to elements arising fron a covered Hazard. EUGIBILfTY: 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 Auount while the inwrance a effective. ft is not necessary fa you to notify the Poliryholder or the Company when Scheduled AMine tickets are purchased. EFFECTIVE DATES: Your insurance under this imurance plan is effective on the later of: 1) April 1, 1007;, or 2) the date you become an eligible Cardmember. Your irsurance coverage under this irsurance plan will cease on the earlier of: (1) the date the insurance coverage is terminated; or (2) the date you cease to be an eligible Cardmember. -19- 10DCM0_0280K TL22AG0210_01361 rearler.iridd 2t-22 12/15/09 1:36:44 PM C05T: This insurance plan is provided at no addRional cost to eligible Insured Persons for Covered Trips. Policyholder pays the full cost of the inwrance. THE BENEFICIARY: The Lou of Life benefit will be paid to the benefidarryy designated bbyy you. H no wilt designation has been made, that beneftt xn'll be paid to the first surviving beneficiarryy in the fdlowing order. a) your spouse; b) your dtildren; ~ your pazents d) your brothers and sisters, e) your estate. All other indemnities will be paid to you. If you wish to change your beneficiaryt you may request a benefidary designation form by wnttngg to the plan administrator at: The DireR Markettng Group, Inc, t32fi5 Bedford Avenue, Cknaha, NE 68164 w at 8enefidaryrequest9TheDirectMG.com. EX0.USIONS: This insurance plan does not cover Loss resuhing from: (t)an Acddent occurring while anJrtsured Person b in, entering, or exiting anyy aircraft owned, leased or operated by this Pdicyholder or any alruaft owned, {eased or operated by an employee of the Pdiryhdder on behalf of the Poliryholder (this exclusion does not apply to airraft chartered with pilot or crew on one time charter basis), (2) an accident while an Insured Person is in, entering, or exiting any airvaft while acting or training as a pi1,oY or vew member (this exclusion does not apply to passengers who temporarilyperfarm pilotoraewfunctionsin alifethreatening emergenry); (3) emotional trauma, mental or physipl illness, disease, pregnanry, childbirth w miuarriage, bacterial or viral infection, or bodily maHunctions (except bacterial infection caused by an Acdderit or from Auidental consumption of a substance contaminated by bacteria); (4) suicide, attempted suicide or Loss that is intentionally self-inflicted; or (5) declared • or undeclared War. ". CLUM NOTICE: Written claim notice must be given to the Company within 90 days after the occurrence of any Loss covered by this polity or as soon as reasonably possible. Failure to give notice within 90 days will not invalidate or reduce any otherwise valid daim if noticeis given as soon as reasonably possible. CLAIM FORMS: When the Company receives notice of a daim, the Company will send you forms for giving proof of Loss to us within 15 days. If you do not receive the forms, you should send the Company a written description of the Loss. CLAIM PROOF OF LOSS: Complete proof of Losi must be given to Company within 90 days after the date of Loss, or as soon as reasonabiy possible. Failure to give complete proof of Lou within these time frames will not invalidate any othervwse valid daim if notice is given as soon as reasonably possible and in no event later than one year after. the deadline to submit complete proof of Lou. CLAIM PAYMENT: The Company will pay you or your beneficiary the appGcabk Benefit Amount within 60 days aher complete proof of Loss is received and if you, the Pdiryhokler and/or the beneficiary have I caniplied wfth all the terms of the policy. ARBITRATION: In the event of a dispute under this polity, either the Cgnapany or the Insured Person may make a written demand for arbitration. In that case, the Company and the Insured Person will each seleR an arbitrator. The two arbitrators will select a third. If they cannot agree within 15 days, either the Company or the Insured Person may request that the choice of arbitrator be submitted to the American Arbitration Auodation. The arbitration will be held in the state of the Insured Person's principal residence. IF YOU HAVE ANY CLAIM RELATED QUESTIONS, PLEASE CALL THE -20- CLAIMS SERVICE CENTER AT 1-800-CLAIMS-0 (t-B00-252.4670). You can also go to the Company Web site (www.chubb.com), dick on Report a Loss, select Accident, Benefits and L1fe claims, select the appropriate form, print out the claim form, fill out and mail. You can file a dalm by mail or fax. ' Mailing Address: CHUBB GROUP OF INSURANCE COMPANIES CLAIMS SERVICE CENTER 6001NDEPENDENCE PARKWAY PO BOX 4700 - CHESAPEAKE, VA 23327-0700 Fax Number. 1.800.300.2538 As a handy reference guide, phase read this and keep it in a safe place with your other insurance documents. Tha desviption of covero~e is not a contract of insurance but is a sunxna of the prindpal provisoru of the iruurazxe while in effect Complete icy promrons are corrtained in the Master Policy, which can be obtain from the PoBryholder. Policy 89906.18-06 Polity Underwritten By Plan Administrator Federal ktwrance Company The Direct Marketing Group, Inc a member insurer of the 13265 Bedford Avenue Chubb Group of ktwronce Companies Omaha, NE 68164 1 S Mountam View Road, PO Box 1615 Warren, N107061-1651 DESCRIPTION OF COVERAGE SECONDARY RENTAL CAR COWSION COVERAGE Discover. Cardmembers can benefit from the security and safety offered through Excess Collision Damage Waiver, ff you reM a vehicle for 37 consecutive days or less (or 45 days under certain circumstances described below) with your Card (as defined below), you may be eNgible for benefits under this coverage. Excess Collision Damage Waiver is an insurance program, underwritten by Federal Inwrance Company Policy 89906-17-63 (the "Polity"), DERNR10N5: ASC4gIIS means a Card account - means the cost to repair or replace the Rented Automobi a at the time of loss, less depredation. Sim[ means the holder of the Card whose name appears on the credit card. ~ means the Discover Card Co~sion Damage means the direR and attidental damage to a Rented Automobile aused by upset or cdlision with another object Collision Damage does not irsclude loss caused by missiles, falling ob'ects, fire, theft or larceny, explosion, earthquake, windstorm, hail, water, ~ood, malidous mischief or vandalkm, riot or civil commotion. S9~R10lf means the Federal Insurance Company. lDal~d meam Cardmembers and authorized users of the Account oP~ means DFS Services LLC, the entity responsible for the payment pram' gffiyLdp~y means a commerdal automobile rental company licensed under the laws of the applicable jurisdiction Rented Automobik 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 Reined _Zt- 10DCM0 02BOK TL22AG0210 01361 reader.indd 23-24 1?J15r09 1:36:44 PM Automobile must be designed for travel on public roads and rented from Rental Agenry. TO GET COVERAGE: • The Collision Damage Waiver.Coverage is provided to you, as an Insured, automaticallq 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 [he time the rental fee is charged or debited to your Account. • You must decline the LosslDamage Waiver offered by the vehicle Rental • You m st rent the vehicle in your own name and sign the vehicle rental agreemeMkontract. • The coverage period will not exceed 31 consecutive days, or 45 consecutitre days 'rf the Insured is an employee of an organization which has provided a Card to the Inwred for business use. THE KIND OF COVERAGE YOU RECEIVE: In consideration of the premium paid by the Policyholder as required, and wbject to all the terms of the Pd' the Company agrees to reimburse on an Actual Cash Value basis either tix Uwred ar the Rerrtal A~enry for repair or replacement of the Rented Automobile as a rewft of Collision Damage to the Rented Automobile. The Company's liability will be fa a maximum reimbursement of 525,000. m no event tnnll the Company be liable beyond the amounts aRualty paid by the Insured or the Rental Agenry. • ff you or an Inured's primary vehicle insurance or other coverage has made payments for atovered loss, Excess Collision Damage Waiver will cover your deductible and any other eligible amounts not covered~liy other insurance. • This coverage is not all-inclusive, which means it does not cover such things as personal in'urryy or personal liability. It does not coveryou for any damages to other ve~ides or property. K does not coveryou for any injury to arty party. WHO 15 COVERED: • Discover Cardmembers ' EXCLUDED RENTAL VEHICLES: Off-road, antique or limited etihion motor vehicles; trucks; recreational :ehi,:ies, tampers, p;ckup truiks, and nnn~~buses; limited edition motor vehicles or high value, exotic, high performance or collector type, High value motor vehicles are motor vehicles whose replacement value exceeds (50,000, and antique motor vehicles are defined as any vehicle aver 25 years old, or any vehicle which has not been manufactured for 10 yeah or more. WHERE YOU ARE COVERED: • 'overage applies to vehicles rented anywhere in the world. • Coverage is not available where prohibhed by law. WHAT IS jSQj COVERED: i Co+rerage does not apply to loss resuhing from the following: • Any dishonest, fraudulent or criminal act of the Insured. • Forgery by the Insured. • Loss due to war or confiscation by authorities. • Loss due to nuclear reaction or radioactive contamination. • The Insured being intoxicated, as defined by the laws of the jurisdiction where the loss occuned, or under the influence of any narcotic unless prescribed by a physician. • Use of the Reined Automobile to carry passengers and property for hire. _ZZ- • Use of the Rented Automobile by a person other than the one authorized to operate the Rented Automobile by the terms of the Rental Agreement. • Loss of use of the Rented Automobile. • Intentional damage to the Rented Automobile by the Insured. • Damage which is due and confined td wear and tear, fieezing, mechanical or electrical breakdown or failure. • Damage to tires unless the loss is coincident with a covered loss. • Use of the Rented Automobile in tests, races or contests. • The Rented Automobile being operated or located in any territory prohibited by the terms of the Rental Agreement FOR INSUREDS WHO ARE NEW YORK STATE RESIDENTS: To the extent that this plan provides insurance against damage to a rented motor vehicle, the fdlovving terror and condfiats apply. (1) the period of insurance wverege will not exceed 31 consecutive days, or 45 consecutive days 'rf the Inwred is an emplooyyee of an organization whidl has provided the Card to the Iriwred for baircess use; and (2) the insurance provided by this plan will be excess aver any other valid and collectible insurance covet- ing the Rented Automobile. However, the iruurarxe provided under this plan may be pnmary'rf spesxficalty provided for under the terms of this plan and ff the following criteria is met (a) the Rented AutomoM'le is rented for use outside the Unrted States, its territories and possession; (b) the Insured is an employee of an organization which hffi provided the Card to the Insured for business use; and W the Rented Automobile's rented without a dritrer. NOW TO flLE A CLAIM UNDER EXCESS COLLISION DAMAGE WAIVER: In the event of a claim, written or verbal notice must be provided as soon as reasonaby possible. IF YOU HAVE ANY CLAIM RELATED QUESTIONS, PLEASE CALL THE CLAIMS SERVICE CENTER AT 1~800-0,NMS-0 (1.80a252~670). You can abo go to the Company Web site (vvsvw.chubb.oorri), dick on Report a Loss, select Atxiderrt, Bertufits and Life d~ sekctthe appropriate form, print out the dawn form, f'p out and mail You tan file a claim by mail or fax. Mailing AdrlresS CHUBS GROUP OF INSURANCE COMPANIES CLAIMS SERVICE CENTER 600 INDEPENDENCE PARKWAY PO BOX 4700 CHESAPEAKE, VA 23327-4700 Fax Number. 1-800300.2538 CLAIM PROCEDURE: The Inured must send the Company written notice of a claim, including the Insured's name and Policy number, within 90 days after a covered loss occurs. ff notice cannot be given within that time, it must be given as soon as reasonably possible. To file a swum Proof of Loss, the Inwred must send the following information to the Company or its authorized representative: • A copy of the Account statement showing the automobile rental tranacuon. • 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 Agency. • A copy of the paid claim presented by the automobile Rental Agenry for the Collision Damage for which the Insured it responsible. • 23 10DCM0_02801C_TL22AG02t0_01367_readar.indd 25.26 12I15I09 1:36:44 PM • Proof of submission of the loss to, and the resuhs of any settlement or denial by the applicable insurance carrier(s). • If no other insurance is applicable, a notarized statement from the Insured to that effect. Reminder: Please refer to the Insurance Disclosures section. INSURANCE DISCLOSURES As a handy reference guide, please read this document and keep it in a safe place with your other insurance documents. This Summary of Coverage is not a contract of insurance but is simply an informative statement to eligible Iruureds of the principal provisions of the irmsronce while in effect Complete provisions pertaining to this plan of insurance are contained in the master policy on file with DFS Services LLC, herein referred to az the PoBryhdder. ff a statement in this Summary of Coverage and any provision in the pdiry differ, the policy vd8 govern. Polity Underwritten By Plan Administrator Federal ktsurance Canpatry (`Company") The Direct Marketing Group, Inc a member of the 13265 Bedford Avenue Chubb Group of Insurance Companies Omaha, NE 68164 15 Mountain View Road, PO Box 1615 Warren, N107061-1651 Master Pdicy Number. 9906.17-63 Effective date of berseftts: Effective Aprl 1, 2007, this gguide replaces a6 prior disclosures, program desoiptions, advertising, andlar brochures by any party. Policyholder and Company reserve the right to change the benefits and features of these programs at any time. Cancellation: Policyholder can cancel these benefits at any time. or choose not to renew the itsurance coteragge fa all authorized Cardmembers. ff Pdicvhdder does cancel these berreftts, you will be notified at least 60 days in addvvance. If the Company terminates, canceb, or chooses not to renewthe coverage to Poicyhokder, you will be notified az soon az is practicable, kuurance benefits will still apply for arty benefits you were eligible for prior to the date of such tenninaUons, wrxellation, or rantenewai, subject to the terms and conditions of cotverage Benefits to you: These benefits apply only to Cardmembers vviwse cards are issued by U.S. fmandal institutrorn. The United States is defined as the 50 United States, the Distrkt of Cdumbia, Amercan Samoa, Puerto Rico, Guam and the U.S. Virgin Islands No person or entity other than the Cardmember shaA have any legal or equitable ri4ht, remedg or claim for_ insurance proceeds and/or damages under or arising out of this coverage. These benefits do not apply if your Card privileges have been cancelled. However, inuuance benefits will still apply for any bateftt you were eligible for prior to the date that your Auourit is wspended or conceded subject to the terms and conditions of coverage of your Cardrnember Agreement. Transfer of rghu or benefits: No rights or benefits provided under these insurance benefits may be assigned without the prior written consent of the Company. Misrepresantation and Fraud: Coverage of the Insured will be void if, at any time, the Irtwred has concealed or misrepresented any material fast or cirarmstance containing this coverage or the subjedthereof or the interest of the Insured herein, or in case of any fraud or false swearing by the Insured relating thereto. Coverage for an Insured will be void if, whether before or after a loss, the Policyholder or its subscribing organization(s) has concealed or -za- i toDCMO 02BOK 7L22AG0210_01361 reatlecintld. 27-28 misrepresented any material fact or dreumstance containing this coverage or the wbjed thereof or the interest of the Insured therein, or in case of any fraud or fake swearing by the Policyholder or its subscribing organization(s) relating hereto. Addition of New Insureds: All efigible persons will be automatically insured underth6 Poligc ' Examination Under Oath: h is a condition of this insurance that the tnwred and the Pdi~older, az often az may be reasanabiv required by the Company, wit submit, and within its power cause others to submit, to examinabons under oath and will produce for examination ali wrRin9s, books of account bilk, invoices and other vouchers, or certified copses thereof if originals are lost, at such reasonable time and place as may be designated by the Comparry or its representative, and wiN permit exVactt and copies thereof to be made. No wch examination under oath, examination of documents or any other ad of the Comparry, its em ees or representatives in connection with the investigation of airy loss o~ r claim wi8 be deemed a waiver of airryry defertse and such acts shall be deemed to have been made or done without prejudice to the Company's liabiftty. No Beneftt to Others: This coverage will in noway inure directly or indirectly to the benefit of arty insurer, person a organizatson or other bailee Su atforc h is a condition of this insurance that if the Company pays the Insur for a loss, is will require the ktsured to assign and transfer anyclaim or right of action aggaainst any individual, firm or corporation for suds kra to the Company a wbrogate a hdd in tnrst all such rights to the extent of the amount paid. The Insured will agree to take action as requested by the Company to enforce such rights Upon payment by the Company to thp Insured, the Insured agrees to direct enforcement of such nghts 9s 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. Arbitratfon: le the event of a dispute under this pdiry, either the Company or the Insured may make a written demand for arbitration. In that wse, the Company and the Insured vriq each select an arbitrate The two arbitrators unli select a third.d they cannot agree wtthin i 5 days, either the Compady or the Insured may requestthat the chdce of arbhrator be wbmittcd to the American Arbitration Assalation. The arbitration will beheld in the state of the Inwred's princlpal residence. GLOBAL TRAVELER'S HOTLINE TERMS AND CONDR10N5 the Global Traveler's Hotline provides Cardmembers and their families,a wide range of flee travel assistance benefits. tt is operated by AXA Assistance USA, Inc Vuit Discovercard.comftravel to team more. Eligibi0t~t You must be a Cardmemher whose Account is in food standing, the CardmemberY spouse or dependent child traveling with the Grdmember or an Authorized User of an Account in good standing. Third-Party Charges. Global Traveler's Hotline is not irxurance, so you will be responsible for alithird-party fees and expenses for services requested, such az professional or medical fees AvarTabilhy of SeMces Certain servkes m not be available in all areas Call us at 1.80aDISCOVER (1-800.347.2683~for assistance or if you have questions about a speafic destitution. Outside the U.S., call us tolled at 1-801-902.3100. Whine AXA Assistance will make every reasonable effort to provide the services, neither AXA Assistance nor Discover Bank- a our respective affgiates will be liable if a service is not provided or for any services that are provided by third parties. The services and these terms and conditions are subject to change without notice. -zs- 12/15/09 1:38:44 PM ~~~ r~ EXHIBIT "C" y DIC/~~C~] New Balance ~ Minimum Payment Due I Account Number ending in 2585 J~.r G It $0.00 i 52,536.00 I Enter Amount Enclosed Below Payment Due Date $ ~~ S b r eptem er 26, 2010 31 SDSN8A01 0004844 MARY STETS Go paperkrss and make your account 15 ETTER RD information more secure whh password- protected statements onry you wn access. NEWBURG PA 17240-9134 Learn more at discover.comlpaperless. PO BOX 6103 Illur~lnnrlluullrllnl CAROL STREAM IL 60197-6103 Address, email or telephone change2 ~ ~I I~tuutiiitiuintitiinut~~~innrlitiintui~u~nll Go fo v^vw.Discover.ctsm or print change in space above. t tt 600 O in Dals• A t 26 2010 - CI Dals• • " '^' ^ pen g ugus osmg Augus Discover More Card Account Summary Account number ending in 2585 Previous Balance $14,108.97 Payments And Credits - 14,108.97 Purchases + 0.00 Baksnce Transfers + 0.00 Cash Advances + 0.00 Interest Charged + 0.00 Fees Charged + 0.00 New Balance 0,00 See InMrest Charge Calcukstion section following transactions for detailed APR information Credit Line $13,000.00 Credit Line Available $0.00 Cash Advance Credit Line $6,000.00 Cash Advance Credit Line Available $0.00 - -- • - r~~ Payment Information New Balance $o.oo Minimum Payment Due $2,536.00 Payment Dua Date September 26, 2010 LaN Payment Warning: If we do not receive your minimum payment by the data listed above, you may have to pay a late tae of up fo $35.00 and your purchase and balance transfer APRs for new transactions may be increased up to the Penahy APR of 24.99% variable. Manage Yaw Aaount Online at www.Discover.com • Securely access statemenh and free online tools, pay bills online and hack and view all franaactions simply and easily • Make your money worth morel-find easy ways fo eam and redeem cosh rewards • NEW! Access your accounf securely through your mobile phone 3E W Coshbat ISOnUS® asy ays to Contact Us l . Access your account securely at www.Discovsr.ctsm Anniversary Month 2. Calll-800-DISCOVER (1.800.347.2683) March Please have your Discover®card available. Opening Cashback Bonus Balance $ 0.00 3. Write to us at Discover, PO Box 30943, New Cashback Bonus This Period + 0,00 Sah Lake City, UT 84130 Cashbtxk bonus balance $ 0.00 For TDD (Tebcommunications Device for the Deaf) To learn more, lag in at www.Discowr.com assistance, please call 1-800.347-7449. Transactions T ~ ~ P Da ie DaF Paymenb and Credits Aug 31 Aug 31 INTERNAL CHARGE-OFF $ -14,108.97 Fees TOTAL FEES FOR TENS PERIOD $ 0.00 Merest Charged. TOTAI INTEREST FOR THIS PERIOD $ 0.00 2010 Totals Year-to-Date TOTAL FEES CHARGED IN 2010 $ 259.00 TOTAL INTEREST CHARGED IN 2010 1,770.59 Interest Charge Calculation Your Annual Percentage Rate (APR) is the annual irttenst rate on your account. ANNUAL PERCENTAGE bAIANCE SUb1ECT TO INTEREST CHARGE Currant bt'Ritg Period: 6 days RATE (APR( (MEREST RATE Purehars 19.99% V SO SO Cash Advarrus 24:99% $0 $0 V = Variable RaM Additional Important Mormtation Important Information. IF there is more dwn one page to this billing swtement, see the back of each page for additional important information Continued an ravens Side. DISCOVER DISCOVER $ANK VS. MARY STET$ RULE 1312-1. TO THE THE JUDGES OF SAID COURT: =r-y ::C:'YY MF "a Edward Stock, Esquire , counsel for the plaintiff/defendant in the above action (or actions), respectfully represents that: 1. a above-captioned action (or actions) is (are) at issue. 2. a claim of the plaintiff in the action is $ 14,108.97 e counterclaim of the defendant in the action is The following attorneys are interested in the case(s) as counsel or are otherwise disqualified to sit as arbitrators: George B. Faller, Jr., Esquire WHEREFORE, your petitioner prays your Honorable Court to appoint three (3) arbitrators to whom the case shall be submitted. pit t? ??C) Respect y s mitt , 3t 3 E DA t S , ES ORDER OF COURT Att Attorney for Plaintiff AND] foregoing petition, Esq., and actions) as prayed 19 , in consideration of the Esq., Esq., are appointed arbitrators in the above captioned action (or By the Court, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 10-7366 CIVIL 2010 • t,...a r+a rn= xrn -0 The Petition for Appointment of Arbitrators shall be substantially in the following fo ;Z: 1 C 1 c c; ?. cm? PETITION FOR APPOINTMENT OF ARBITRATORS P.J. IN THE COURT OF COMMON PLEAS OF DISCOVER BANK CUMBERLAND COUNTY, PENNSYLVANIA VS. NO. 10-7366 CIVIL 2010 MARY STETS -a 3 a - - -.c -n rn__ Z ?? Asa tsM D ccn ?t RULE 1312-1. The Petition for Appointment of Arbitrators shall be substantially in the following fo '_ CO r PETITION FOR APPOINTMENT OF ARBITRATORS -' TO THE HONORABLE, THE JUDGES OF SAID COURT: Edward Stock, Esquire , counsel for the plaintiff/defendant in the above action (or actions), respectfully represents that: I. The above-captioned action (or actions) is (are) at issue. 2. The claim of the plaintiff in the action is $ 14,108.97 The counterclaim of the defendant in the action is The following attorneys are interested in the case(s) as counsel or are otherwise disqualified to sit as arbitrators: George B. Faller, Jr., Esquire WHEREFORE, your petitioner prays your Honorable Court to appoint three (3) arbitrators to whom the Me sWJI brj submitted. -.nom -.. -'r-q w? - Respect y "mitt {=c? h1w EDY STO< , E C7 W ORDER OF COURT Attorney for Plaintiff r , AND NOW, ?9'- , in cons. eration of the foregoing petition, / Esq., Esq., and ?&t4jgd ?{ < &MJ W.e? , Esq., are appointed arbitrators in the a love captioned action (or actions) as prayed for. By the Court, JA. GMT 6. FWbr.Jr At OOPipm P.J. EduxLrd Si k, ? /? lt 5 a h Plaintiff County, Pennsylvania No. 169G? - Z.O 10 Defendant Civil Action - Law. In the Court of Common Pleas of Cumberland Oath We do solem swear (or affirm) that we wil ort, obey and defend the Constitution of the United States and the o tution this ommo alth and that rge the duties of our office with fidelity. Sig ure Signa ure Signature 4-.J .tj 4) 5 Name (Chairman) 4 -!? / _j `,` QQ Law Firm 5 K a C) ---\ S-A,102- Address ?1 Q ? 1055 City, Zip Name l-Qu p tw 4 -Pu.. e,. ?p Law Firm 500 b ti"'"T?,? RA, 1 Lm Address City, Zip X- , 4,-L Name Law Firm Address City, Zip Award We, the undersigned arbitrators, having been duly appointed and sworn (or affirmed), make the following award: (Note: If damages for delay are awarded, they shall be separately stated.) .Arbitrator, Date of Hearing: $ 1 1 Date of Award: name if applicable.) (Chairman) Notice of Entry of Award Now, the day of 20 at c7 ?? M., the above award was entered upon the docket an otice thereof given by mail to the parties or their attorneys. Arbitrators' compensation to be paid upon appeal: $ 3< By: Prothonotary Deputy