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Home My WebLink About10-7404Stock & Grimes, LLP By: EDWARD STOCK, ESQUIRE I.D.# 13657 804 West Avenue Jenkintown, PA 19046 (215) 576-1900 DISCOVER BANK 1L Reads Way New Casltlle, DE 19720 vs. MARY A. MEHRPUYAN 35 Devonshire Square Mechanicsburg, PA 17050-6878 Attorney for Plaintiff COURT OF COMMON PLEAS t~ ,~, ~ CUMBERLAND COUNTY == -~ ~ `-~ ca '~~ -•) CIVIL ACTION -LAW rT1~ ~. S-~ I ~\ ~ ~'~' ~~ ~~ ~ tY'~ -- ~r- fV ~~~v C7 ` j C,a ~ I'~ -~ c..~ ~> ~ -a --< CIVIL ACTION COMPLAINT YOU HAVE BEEN SUED IN COURT. IF YOU WISH. TO DEFEND AGAINST THE CLAIMS SET FORTH IN THE FOLLO"WIl~TG PAGES, YOU MUST TAKE ACTION WITHIN TWENTY (20) DAYS AFTER THIS COMPLAINT AND NOTICE ARE SERVED, BY ENTER]Q~1G A WRITTEN APPEARANCE PERSONALLY OR BY AN ATTORNEY AND FILING IN WRITING W~TFi 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 7LJDGMENT MAY BE ENTERED AGAINST YOU BY THE COU12T WITHOUT FURTHER NOTICE FOR .ANY MONEY CLAIMED IN THE COMPLAINT OR FOR ANY OTHER CLAIM OR RELIEF REQUESTED BY THE PLAINTIFF. YOU MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IlVIPORTANT TO YOU. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO THE TELEPHONE OR THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 32 SOUTH BEDFORD STREET CARLISLE, PA 17013 1-800-990-9108 717-249-3166 © ~~ a~~ ~ ~`~a' ~ Q~ y~.t~o e ~~ asp -cS4 e 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 Plaintiff vs. MARY A. MEHRPUYAN 35 Devonshire Square Mechanicsburg, PA 17050-6878 Defendant (s ) Attorney for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW NO. CIVIL ACTION COMPLAINT COUNT I 1. Plaintiff, Discover Bank, is a banking institution organized under the laws of the State of Delaware and maintains a business address of 12 Reads Way, New Castle, DE 19720. 2. Plaintiff is engaged in interstate commerce and is subject to various federal laws and federal banking regulations; and, Plaintiff does not conduct business within the Commonwealth of Pennsylvania within the meeting of any statutes and/or regulations pertaining to foreign corporations. 3. Discover Bank is the issuer and owner of the Discover credit cards which are issued to consumers pursuant to an extension of credit agreement with them. 4. DFS Services, LLC is affiliated with and is the servicing agent for the Discover credit card accounts for Discover Bank. It creates and maintains all of the records in connection with all of the activities and/or transactions regarding the Discover accounts, which records are maintained by DFS Services, LLC in the ordinary course of its business. DFS Services, LLC is authorized to execute the Affidavit attached hereto as Exhibit "A". 5. The Defendant, Mary A. Mehrpuyan, 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 24, 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 $17,910.42; 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 A. Mehrpuyan, in the sum of $17,910.42, 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 $17,910.42 to Plaintiff's detriment. WHEREFORE, Plaintiff, Discover Bank, demands Judgment against the Defendant, Mary A. Mehrpuyan, in the sum of $17,910.42, plus reasonable attorney fees, costs and pre-judgment interest in accordance with law. DATE: ~ D i i a ' + ~ VERIFICATION The undersigned, EDWARD STOCK, ESQUIRE, hereby states that he is the attorney for the Plaintiff who is located outside this jurf sdiction and in order to file the within. document 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 undersigned understands that false statements herein are made subject to the penalties of 18 P.A.C.S..A. § 4904, relating to unsworn falsification to i authorities. EDW TOCK 1 ~ _... _._ _.. i I _... .. _. _.. .... .I_-__ __..._ ___.__._ ___ d , ~i~ ~~~ Exhibit "A" , I i • i ATTORNEY: STOCK ACCOUNT NUMBER: i~ 85 BALANCE: $17,910.42 CARDMEMBER (S): MARY A MEHRPUYAN STATE OF OHIO COUNTY OF FRANKLIN .Robert Adkins, personally appeared before me, this day and after being duly sworn, according to law, upon hislher oath and says: I am a Legal Placement Account Manager for DFS SERVICES LLC., the servicing agent of DISCOVER BANK, an FDIC insured Delaware State Bank. THAT this affidavit is made on the basis of my personal knowledge and in support of Plaintiff's suit on account against the Debtor(s) THAT, in my capacity as Legal Placement Account Manager, I have control over and access to records regarding the Discover Card Account of the above referenced Debtor(s), fizrther, 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 for oing is true and correct to the best of my knowledge. - Affiant Sworn and Subscribed before me, This day of Tuesday, September 21, 2010. OTARY ~* rl ~~ ~~c' ~. ~s:;,,~ ---,.....w.. ~' ~``~~ . ~`'r-ic'~_.. .,,.,- K. RENEE LIVENGOOD Notary Public In and for the State of Ohio My Commissron F.~+es Apr. 05, 2011 ~~~ Exhibit "B" DISC VER° YOUR DISCOVER® ACCOUNT • CARDMEMBER AGREEMENT ................Pages i-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 confidentiality and security of information. You may limit our sharing of such information with others as explained in section 4 of the Privacy Policy at page 15. BILLING RIGHTS ..........................Pages 16-17 Important information about your rights and our responsibilities under the Fair Credit Billing Act DESCRIPTION OF COVERAGE ...............Pages 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. ®2010 Discover Bank, Member FDIC TL22AG.0210 10DCM0 0260K_TL22AG0210_01361 _reader.indd 1-2 72n 5rU9 1:36:41 PM CARDMEMBER AGREEMENT Please read this Agreement carefu8y before using your Discover® Card Account ft mrrtains the terms and conditions of your Auount some of which may have changed from ear5er materials provided to you. In the event of any differences, this Agreement shag torrtrol. We respell your privary. See the Privary section on page 10 and our Privacy Polity for additional irdonnadon. The Arhitratton of Disputes section on page tt indudes a waiver of a number of rights, indu~ng the right to a jury trial. The Right to RejeR Arbitration section on page 13 describes die procedure you must fopow d you desire to reject the Arbitration of Disputes secion. DEFINITIONS ................................................... 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 Credft Authorizations ........................................ 3 Authorized Users ........................ .................... 3 Unauthorized Use ........................................... 3 YourCredR Lines ............................................ 4 CHANGE5T0 THIS AGREEMENT ................................... 4 MAKING PAYMENTS ............................................. 4 Promise to Pay .............................................. 4 Monthly Billing Statement ...............................'..... 4 Mor>Thly Payment Options ..............................'.'..... 5 Automatic Billing Arrangements ............................... 5 How We APPN Payments ..................................... 5 Minimum Monthly Payment .................................. 5 Skip-A-Payments')ffers ................... .................... 5 Credit Balances .............................................. 5 FINANCE CHARGES ........................................:..... 6 How We Calculate Periodic Finance Charges ............... ~...... 6 How We Calculate Your Balances .............................. 6 Variablelnterest Rates ........................................ 7 Defauh Rate ................................................ 7 Cash Advance Transaction Fee Finance Charges .................. 8 Balance Transfer Transaction Fee Finance Charges ................ 8 Foreign Currency Transaction Fee Finance Charges .........'..... 8 Minimum Rnance Charge ..................................... 8 Account5et-up Fee Fnance Charge ............................ 8 FEES ........................................................... 8 Annual fee ................................................. 8 Late Fee .................................................... 9 Returned Payment Fee ............:....:............... 9 Returned Discover Card Check Fee .......................1..... 9 Pay-By-Phone ............................................... 9 Research Fee ................................................ 9 DEFAULT AND CANCELlA710N .................................... 9• Types of Default ............................................. 9 Conse~uencesof Default ..................................... 9 Cancelation ................................................ 9 PRIVACY AND OUR COMMUNICATIONS WffH YOU ................. 10 Our Privary Policy ........................................... 10 Reporting to Gedit Reporting Agencies ........................ 10 -t- i0DCM0_02BOK_TL22AG02t0 Oi36i_reader.indd 3.4 1275/09 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 Disputes .......................................11 Right to Reject Arbitration ....................................13 LEGAL INTERPRETATION OF THIS AGREEMENT .......................13 Severability .................................................13 Compliance with Interest Rate Limitations ................. . .....13 Governing Law ..............................................13 ASSIGNMENT OF ACCOUNT ........... . ...........................13 DEFlN1ilON5 "Account" means your Discover Card Account 'Authorized User" means any person whom you authorize to use your. Account or a Card, whether you notify us or not "Card" means any one or more Discover Cards issued to you or someone else with your authorization. "Pricing Schedule" means the document accompanying your Card and listing the Finance Charge rates that apply to your Account. The Pricing Schedule is part of this Agreement "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 yrho are also contractually liable under this Agreement. USING YOUR ACCOUNT Your Acceptance of this Agreement The use of your Account or a Card by you or an Authorized User, or your failure to cancel your Account within 30 days after receiving a Card, means you accept this Agreement, including the Arbitration of Disputes section on pa a 11. You may, however, reject the Arbitration of Disputes section 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 merchantr 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 conditions as we mayoffer from time to time. • Cash Advances - to obtain cash advances from participating automated teller machines, financial institutions a other locations, the purchase of lottery tickets, racetrack wagers, vouchers redeemable for cash or for casino chips, money orders, traveler's checks, savings bonds, foreign currency and wire transfers, or by means of checks which we may furnish to you, atl in accordance witt1 such additional terms and conditions as we may offer from time to time. • Balance Transfers - to transfer balances from other creditors or to make other transactions bbyy meam of balance transfer coupons or checks, in accordance with such additional terms and conditions as we may offer from time to time. In addition, your Account may be used to guarantee reservations at participating establishments. You will be liable for guaranteed reservations that are not cancelled prior to the time specified by the establishment. Your Account may be used for personal, family, household and charitable purposes. -2- 1000M0_0280K_Tf22AG0210 07361 reader.indd 5.6 Prohibited Uses of Your Account Your Account may not be used to obtain loans to Purchase, carry or trade in securities, to pay any amount you owe under this Agreement or for any transactions that are unlawful where you reside or where you are physically located when you use the Account to inhiate the transaction ("Prohibited Transactions"). Purchases and Cash Advances in foreign Currendes. If you make a purchase or cash advance in a foreign currenry, it will be converted to U.S. dollars using either agovernment-mandated rate, agovernment-published rate or the interbank exchange rate, depending on the country and curcenry in which the transaction u made. The rate used will be the rate in effect on the conversion date for the Vansaction, which may be different than the Transaction Date as shown qn your statement. We charge a foreign Currency Transaction fee Finance Charge for each purchase made in a foreign curcenry as described in the Foreign Curcenry Transaction Fee Finance Charges section on page 8. Cash Advances. We may periodically offer you Promotional rates on cash advances for the time period spedfied in the offer, subject to the Default Rate section. The offer may coritain a Cash Advance Transaction Fee finance Charge for ead7 cash advance. Balance Transfers. We may periodically offer you the opportunity to make balance Vansfers from other aedhors or to make other transactions to your Account by means of balance Vansfer coupons or checks. Each offer will contain a promotional rate, which will be the Annual Percentage Rate that will appy to Vansferced balances for the time period specified m the offer, subject to the Defauh Rate action and may contain a Balance Transfer Transaction Fee Finance Charge fw each balance transfer made during the term of the offer, as disclosed in the offer and as set forth in the Pricing Schedule, if applioble. Balance transfers subject to the promotional rate are referred to as promotional rate balance Vansfers; balance transfers for which the promotional rate has expired are referred to as purchase rate balance Vansfers. Each offer will contain an expiration date. H you attempt to Vansfer balances by means of a check after the expiration date, we will treat the transaction as a cash advance. We will not make balance Vansfers attempted by means of a coupon after the expiration date. Credk Authoraations. Certain transactions will require our authorization prior to completion. In some cases, you may be asked to provide identification, We have the right not to authorize a transaction for security or other reasons. Also, if our authorization system is not working, we may not be able to authorize a Vansaction. We will not be liable to you if any of these eveMS happen. Authorized Users. If you want to cancel the authority of a current Atrthorized User to use your Account or a Card, you must notify us and destroy any Card in that person's possession. You can notify us by telephoning 1.800-DISCOVER (1-BOo-347-2683), or by writing Discover, PO Box 30943, Sah Lake City, UT 84130.0943, None of your rightr under tha Agreement (other than to pay amounts owed) may be exercised by any person not a party to this Agreement acting pursuant to a power of attorney, without our separate written agreement (which we are not obligated to give). Unauthorized Use. Prior to its use, eadt Card must be signed by the person to wham it is issued. If a Cardu lost or stolen, or'rfyou think that someone is using your Auount a a Card without your permission, notify us immediately. You kin notify us by telephoning 1-800~DISCOVER (1-800347-2683), or by writing Discover, PO Box 30943, Sah Lake City, UT 84130-0943. You agree to -3- 12!15/09 7:36:41 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 procedures as we may require in connection with our investigation. Your Credit Lines. We will advise you of your Account uedit line, We may impose a lower line that will apply to cash advances, referred to as the cash advance credit line. We may also impose a lower line that will apply to balance transfers, referred to as the balance transfer credit line. You agree not to allow your unpaid balance, including Finance Charges and fees, to exceed your Account uedit 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 invease or decrease your Account credit line, your cash advance. uedh Ime or your balance transfer credit line without notice. The uedit available for your use may, from time to time, be less than your Account credit line. For purposes of determining your available uedit, we reserve the right to postpone for up to 15 business days reducing your unpaid balances by the amount of arty paymerrt that we receive. Your available credit will not be increased by the amount of any credh balance. CHANGES TO THIS AGREEMENT From time to time, we may, to the extent permitted by law, change any term of this Agreement, inducting, but not limited to, any finance dwrge rate, fee or method of computing any balanre upon which the finance charge rate is assessed, or add or delete arty term to this Agreement We will give you notice of the change in the tirrre and manner required by law, which indudes 45{lays advance written notice in some dreumstances, In addition, to the extent required by law, we wdi offer you the opportunity to reject a change. for example, law regrrires, with certain exceptions, that we offer you the opportunity to reject an increase in a late fee or the elimination of a grace period prior to the effective date of the change. H you reject a ~hanye in accordance with the insWCtions in the notice provided, we will dose your Account and you will no longer be able to use rt for further transactions. You can then pay the remaining balance under the unchanged term. We may also dlange any tens of any product service or benefit offered in connection with your Account We wrll notify you as required bylaw or by the terms of the product service or benefit MAKING PAYMENTS Promise to Pay. You agree to pay us in U.S. dollars for all purchases, cash advances and balance transfers inducting applicable Finance Charges and other charges or fees, incurred by you or anyone you authorize or permit to use your Account or a Card, even if you do not notrfy us that others are using your Account or a Card. If you pay us in other than U.S. dollars, we may refuse to accept the payment or charge your Account our cost to convert your payment to U.S. dollars. Ali checks must be drawn on funds on deposit in the U.S. You may not use a cash advance chedc, balance transfer check or coupon, or any other promotional check drawn on any Discover Bank aedR card account to make payments on your Account If your Account is a joint Account, each of ou agrees to be liable individually and jointly for the entire amount owed on your Account We can accept late payments or artial payments or checks and money orders marked payment in full` or with any other restrictive endorsement without losing any of our rights under this Agreement Monthly Billing Statement We will send you a billing statement after each monthly billing period in which you have a debit or credit balance, unless 4- 10DCM0_0260K_TL22AG0210_01361_reader.irMd 7-8 we waive our right to do so as permitted bylaw. The billing statement wiB show all purchazes, cash advances, balance transfers, Finance Charges and other charges or fees and all payments or other uediu posted to your Account during the billing period. h will show your New Balance, Payment Due Date and Minimum Payment Due as of the end of the billing period. If your prig month's payment is returned unpaid, your required Mirnmum Payment Due may be higher than shown on your bdling statement. See the Minimum Monthly Payment section on page 5. Monthly Payment Options. You may at any time pay the entire New Balance shown on your billing statement, but each month you must pay at least the Minimum Payment Due az described in the Minimum Monthly Payment section. All paymerts must be made in accordance with the terms stated on your monthly billing statement, as well as the payment art-off time stated in this section, and we will credit your Account rn accordance with those terms and this section. Payments received in proper form at our processing facility by SPM local time on any day will be vedited as of that day. Payments received in proper form at our processing facility after SPM local time will be credited as of the next day. Automatic Billing Arrangements. ff your Account number andlor Card expiration date changes and our records indicate you have automatic billing establahed with a merchant we will attempt to provide your new Account inforraton to that merchant To ensure uninterrupted brlhng, we recommend thatyou verifythe merdlant hasyour newAccount information. You must contact the merchant directly if you do notwish to corrtinue the automatic billing arrangement. How We Apply Payments. Each~billing period, to the extent your payments exceed the Minimum Payment Due shown on your current billing statement, we will apply these excess amounts in order of the Annual Percentage Rate applicable to the balance of each transaction category (az referenced in the Finance Charges section), generally from highest to lowest beginning with the balance subject to the highest Annual Percentage Rate: Otherwise, we will apply payments and credits at our discretion, indudrn in a manner most favorable or convenient for us. In all cases, we will app~y payments and credits in accordance with applicable law. Minimum Monthly Payment The Minimum Payment Due each billing period will equal: (i) the greater of: • Sao; • 2Yo of the New Balance; or • current Periodic Finance Charges plus Late fees plus 520; Gl plus any past due amount We may also indude 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 billing period. The Minimum Payment Due will be rounded up to the nearest dollar and will never exceed the New Balance. Skip-A-Payment Offers. We may from time to time allow you to not make a minimum monthly payment and will notify you when this option is available. if you take advantage of this offer and do not make a minimum monthly payment, finance charges and any appliable fees will accrue on your Account m accordance with this Agreement and you must pay the Minimum Payment Due for the following billing periods. Credit Balances. We will refund any credit balance within seven business days from receipt of your written request If you do not request a refund, -5- 12/15/09 1:36:42 PM we will automatically refund credit balances greater than S 1 that remain in your Account after 6 months. FINANCE CHARGES 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 wh7ch case we begin to impose Periodic Finance Charges on thattransaction from the fiat day of the btlbngperiod in which R is posted to your Account. We continue to tmpose Periodic Finance Charges until the date you pay your entire New Balance shown on your billing statement by making payments or receiving credits. However, 7f you paid the New Balance on your previous billing statement by the Payment Due Date shown on that billing statement, we will not impose Periodic Finance Charges on new purchases, that is, purchases first appearing on the curcent billing statement, or any portion of a new purchase, paid by the Payment Due Date on your cunert bilbng statement. We call this the "grace perod." There is no grace period on balance transfers or cash advances. As more fully desvibed in the section titled "How We Apply Payments," we generally appH paymentsto your Account based on the Annual Percentage Rate applltcable to the balance of each transaction category. This means that if you do not pay the New Balance on the current billing statement by the Payment Due Date shown on that billing statement, then, depending on the amount of your payment and the Annual Percentage Rates on other balances, you may not get a grace period on new purchases. ' We sort your transactions into groups of purchases, cash advances, and " balance transfers and then further sort the transactions within each group by their Annual Percentage Rate. For example, purchases subject to a promotional rate and purchases"subject to a standard rate would be separate groups. We refer to these groups as transaction categories At the end of each billing period, we compute balances and Penodic Finance Charges for each day of the billing period for each transaction category. we use the following equation to compute Periodic Finance Charges for each transaction category: 7• (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 Periodic Finance Charges for each transaction category to get the total Periodic Finance Charges for your Account. The Average Daily Balance is st7own as zero if, because of the grace period, no Periodic Finance Charges apply to the balance in a transacron category. The Daily Periodic Rate is t/365th of the corresponding Annual Percentage Rate. How We Cakulate Your Balances. We use the Average Daily Balance I (inducting newtransactions)method of calculating the balance upon which we impose Periodic Finance Charges. We compute the Average Daily Balance for each transaction category by adding up all the daily balances in a billing period far a transaction categgory and dwrding the total by the number of days in the billing period. We compute the dai~r balance for each transaNon category on each day by first adding the following to the previous day's daily balance: Vansacttons with a Transaction Date of that day as shown on your billing statemert, unless the transaction is posted to your Account after the dose of the billing period in which R occurs, in which case the vansaction will be added to the daily balance as of the first day of the billing period in which it is posted to your Account, fees charged that -6- day and Periodic Finance Charges acaued on the previous day's daily balance; and by then wbtracting any aedits and payments that are applied against the balance of the transaction category on that day. In calculating the daily balance for the first day of the billing period, we consider the "previous days daily balance" to have been your balance for each transaction category on the last day of your previous billing period. All fees charged to your Account are added to the standard purchase vansaction category with the exception of Cash Advance Transaction Fee Finance Charges which are added to the applicable cash advance transaction category and Balance Transfer Transaction Fee Finance Charges which are added to the applicable balance transfer transaction category. VadablelrrterestRafes. One or more Daily Periodic Rates and corresponding Annual Percentage Rates that apply to a transaction category may be variable rates as set forth in your Prang Schedule or in any speaal offer you receive from us. Variable Annual Percentage Rates are determined by adding a spedfied number of percentage points to the Prime Rate. This is shown on the Pricing Schedule as "Prime + (percentage points).' For Purposes of this Agreement, the Prime Rate is the highest rate of interest uted as the "prime rate" in the Money Rates seRion of The Wall Street loumal on the last business day of the month. The Prime Rate is merely a pridng index and does not represent the lowest or best interest rate available to a borrower at any bank at any given tjtne. Ityou have a variable rate, your Annual Percentage Rate will inaease or decrease when the Prime Rate changes. This change will be effective beginning with the first day of the billing period that begins during the same month as the change in the Prime Rate. An invease in the Annual Percentage Rate may invease 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. (i) terminate the availability of any promotional Annual Percentage Rates on new Varuactions; and (ii) increase your Annual Percentage Rates for new transactions to variable Default Rates. Each new variable DefauR Rate for a new transaction is determined by adding up to 5 additional percentage poinu to the otherwise applicable Annual Percentage Rate and will vary based on any changes in the Prime Rate. (For example,rf the promotional purchase rate was 2.99Yo and the rate for other purchases was 15.99% and you paid late once, the rate for all new purchases could inaease up to 20.99SS variable and vary thereafter with the Prime Rate.) When we first determine the vadable Default Rates, we use the Prime Rate effective for the billing period in vvhich you pay late. The variable Default Rates are determined in accordance with the Variable Interest Rates section. We will base your Defauh Rate on your creditworthiness and other factors such as your current Annual Percentage Rates and your Account history. ff we invease any of your Annual Percentage Rates to a Defauh Rate, we will send you a notice, m accordance with appliable law, advaing of (i) the date the new Default Rate will apply (the 'Defauh Rate Effective Date'), (ii) the type of new transactions to whuh it will be applied (note: the new Defauh Rate will not apply to any other transactions) and, (iii) your right to reject the new Default Rate. New transactions are those Vansacttons which either G) have a Transaction Date, as shown on your billing statement, of more than fourteen days after we mail or deliver the notice to you or, (ii) if permitted by appliable law, were posted to your Account after the current Defauh Rate Effective Date. Your Account will not be subject to a DefauR Rate for the first twelve billing periods after your Account is first opened. -~- I I0DGM0 0280K_TL22AG0210 01367 reetler.indd 9.10 12/16N9 1:36:42 PM If your Annual Percentage Rate for purchases, balance transfers or cash advances was inveased to a Default 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 Percentage Rates on new and existing balances may be different and may be higher than your previous standard Annual Percentage Rates for purchases, balance transfers and/or cash advances or any promotional rate. Cash Advance iransaction Fee Finance Charges. Unless otherwise specified in a cash advance offer, we will charge you a Cash Advance Transaction Fee FINANCE CHARGE of S% of the amount of each new cash advance with a minimum Cash Advance Transaction Fee FINANCE CHARGE of S10 and no maximum. The imposition of Cash Advance Transaction Fee Finance Charges may resuh in an Annual Percentage Rate for cash advances that is higher than the nominal Annual Percentage Rate. All forms of cash advances, inducting the use of Discover Card dtedcs, regazdless of the purpose for which used, are subject to Cash Advance Transaction Fee Finance Charges. To obtain the total Finance Charge on cash advances for each billing period, we add any Cash Advance Transaction Fee Finance Charges for the billing period charged under this section to arty Periodic Finance Charges calculated under the Periodic Finance Charges section for each cash advance transaction category andadd up these amounts Balance Transfer Transaction Fee Finance Charges. Unless otherwise specified in a balance transfer offer, we will charge you a Balance Transfer Transaction Fee FlNANCE CHARGE of SYo of the amount of each new halance transfer wrth a minimum Balance Transfer Transaction Fee FINANCE CHARGE of S10 ono no maximum. The ~mposmon of Balance Transfer' Transaction Fee Finance Charges may result in an Annual Percentage Rate for balance transfers that is Higher than the nominal Annual Percentage Rate. To obtain the total Finance Charge on balance transfers for each billirig period, we add any Balance Transfer Transaction Fee Finance dtarges for the billing period charged under this section to any Periodic Finance Charges calculated under the Periodic Finance Charges section for each balance transfer transaction category and add up these amounts Foreign Currency Transaction Fee Finance Charges. We will charge you a Foreign Currenry Transaction Fee FINANCE 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 for Purdsases that is higher than the nominal Annual Percentage Rate. To obtain the total Finance Charge on purchases for each billing period, we add any foreign Currency Transaction Fee Finance Charges for the billing penod charged under this section to any Periodic finance Charges calculated under the Periodic Finance Charges section for each purchase transaction category and add up these amounts. Minimum Finance Charge. We will charge you a minimum FINANCE CHARGE of 5.50 for any billing period in which Periodic Finance Charges of less than 5.50 would otherwise be imposed. Auount Set-up Fee Finance Charge. If your Pridny Schedule accompanying your Card includes an Account Setup Fee, we will dwrge you a one-trine Account Set-up Fee FINANCE CHARGE m the amount indicated when we open your Account FEES Annual Fee. If your Pricing Schedule accompanying your Card includes an Annual Fee, we will charge you an Annual Fee in the amount indicated. We will charge you this fee when we open your Account and atthe beginning of each anniversary year your Account is open. The Annual. Fee is not 8- 10DCM0 02BOK_TL22AG0210_01361 readecindd 11-12 refundable, except as provided bylaw. Late Fee. We will charge you a Late Fee if you have failed, as of the Payment Due Date, to make the Minimum Payment Due that was required to be paid for that billing period. The amount of the Late Fee it based on the sum of all outstanding purchases, cash advances, balance transfers, other charges, other fees and Finance Charges at the end of the billin period for which we did not receive timely payment If the sum is 5250 or less, the fee is 419. If it is greater than 5250, the fee is 539. Returned Payment Fee We will charge you a Returned Payment Fee of f35 each time you pay us with a check or other instrument that is returned unpaid. This fee will also apply if a debit transaction to a deposR account from which you have authorized us in writing, electronically or orally to periodically deduct all or a part of an amount you owe iu under this Agreement is returned unpaid. We will charge you this fee the first time any payment is retumed unpaid, even if R is paid upon resubmission. Retumed Discover Card Check Fee. We vdll charge you a Retumed Discover Card Check Fee of S35 each time we decline to honor a Discover Card cash advance ched;, balance transfer check, promotional purchase check, or other promotional check Pay-By-Phone We may from time to time allow you to make payments by authorizing us over'the telephone to transfer or pay funds from a deposit account to your Account. We will not charge you aPay-By-Phone Fee. Research Fee. We may charge you a Research Fee of S5 for each copy of a billing statement or sales slip thatyou request. However, we will not charge a fee'rf you request mpies in connection with a billing error. n DEFAULT AND CANCELLATION Types of Default You are in default'd you become insolvent; if you file a bankruptcy petition or have one filed against you; if we have a reasonable belief that you are unable or unwilling to repay your obli~atiorls to us; if you are declared incompetent by a court or if a court appoints a guardian for you or a conservator for your assets; if you die; if you fail to comply with the terms of this Aggreement, including failing to make a required payment when due, exceeding your Account credit line or using your Card or Account for a Prohibited Transaction; or if you fail to make a required payment when due on any other account you have with us, Consequences of Default M you are in default, we may declare the entire balance of your Account immediately due and payable without notice. ff we refer the collection of your Auount to an attomey or employ an attorney to represent us with regard to recovery of money that you owe us, we may charge you reasonable attorneys fees and court or other collection costs as permitted by law and as actually, intoned by us, including fees and costs in connection wrth any appeal We may delay enfordng or not enforce any of our rights under this Agreement without losing or warvtng any of them. Cancepation. You may cancel your Account by notifying us in writing or by telephone and returning or destroying every Card and unused check that we have provided you. You can notify us by telephoning 1-BWDISCOVER (1-800-347-2683), or by writing Discover, PO Box 30943, Salt Lake City, UT 84130-0943. Cif course, you will still be responsible to pay any amount you owe us according to the terms of this Agreement ff your Account is a Joint Account, either Cardmember may cancel the Account, but you will both remain respomible to pay any amount owed to us according to the terms of this Agreement We may cancel or suspend your Account at any time without notice. We may choose not to renew your Accourrt (beyond the expiration date shown on the face of a Card) without notice. You must return any Card br unused checks to us upon request. -9- 12/15!09 1:36:42 PM PRIVACY AND OUR COMMUNICATIONS WITH YOU Our Privacy Polity. 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 Privary Poltry indudes a summary of the personal information we collecC 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 shuriny of such information with others. Please read it carefully as it is part of your Cardmember Agreement Reporting to Credit Reporting Agendes. As indicated in our Privary Polity, we may report to credit reporting agencies and other creditors the status and payment history of your Account, including negative credit information. Late payments, missed payments or other detauhs on your Account maybe reflected in your credit report. We normally report to such credit reporting agencies each month. N you believe that our report of your Account status is inaccurate or incomplete, please write us at the following address: Discover, PO Box 15316, Wilmington, DE 19854.5316. Please indude your name, address, home telephone number and Account number. Our Communiations with You. You agree that our personnel may listen to or record telephone calls between you and our representatives without additional notice to you, indudiny but noTlimfted to calls we make to tolled debts We may use any medium permitted bylaw, including but not limited to mail, live telephone calls, automated telephone equipment, prerecorded telephone rolls, e-mail and calls to your cell phone to contact you about your Account or to offer yyou products or services that maybe 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-BOOAISCOVER (1.800-347-2683) or write to us at Discover, PO Box 30961, Salt Lake CiTy, Ui 30961-0961. Releasing Information About Your Account We provide various methods by which you can obtain information about your Account We will onl release such information to you, any Authorized User that our records indicate is an authorized buyer on your Aaount and any other person with your prior permission, in addition to as provided in our Privary Polity or as required by law. Our security measures cannot insure against unauthorized inquiries You agree that we will not be responsible for the release of information to anyone who, even if without your atrthodzation or permission, has gained possession of a Card or has learned other identifying characteristics about you such as your personal identification number, Account number or social security number. Electronic Notices to You. We may offer you the opportunity to receive certain notices from us eledrontcalfy rather than through the mail, including monthly billing statements and dwnye of terms notices The terms and conditions for receiving these eleNonic communiations will be described in the offer. Notices -Changes to Your Information. If you change your e-mail address, mailing addreu or telephone number you must notify us of your new address or telephone number within 15 days. You can notify us by telephoning 1-800-DISCOVER (1.800-347-2683) or by wrRing Discover, PO Box 30943, Salt Lake City, UT 84130-0943. if your Account is a Point Account, any notice we mail to an address you have provided for the Account will serve as notice to both Cardmembers. CLAIMS AND DISPUTES Merchant Disputes. We are not responsible for the refusal of anyone to accept or honor a Card or to accept checks that we have provided you. ff a merchant fails to provide your purchase to your satisfaction and you -10- 10DCM0 02BOK_TL22AG0210 01361 reader.indd 13.14 request a credit to your Account, we will investigate the dispute. if we resolve the dispute in your favor, we will issue a credit to your Account and you will be deemed to have assigned to us your claim against the merchant andlor any third party for the iTedited amount Upon our request, you agree to provide us with written evidence of such assignment.. daim 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 appliratian, the relationships which result from your Account or the enforceability of the Agreement or any prior agreement, before initiating, joining or partidpating in any judidal or arbitration proceeding, as either an individual litigant or member of a class ("Proceeding"), the complaining party shall give the other party: (1) a written notice of the claim ("Claim Notice"), at least 15 days before initiating any Proceeding, explaining in reasonable detail the nature of the daim and any supporting facts; and (2) a reasonable good faith opportunity to resolve the claim vvithout the necessity of a Proceeding. This includes any claims involving our parent corporation, subsidiaries, affiliates (inducting, without limitation, DFS Sernces LLC), predecessors, successors, assigns, as well as the officers, directors and employees of each of these entkies Any Claim Notice shall be sent to us at Discover, PO Box 3024, New Albany, OH 43054 (or such other address as we shall subsequently .provide to you) (the "Claim Notice. Address") or to you at your address appearing in our records or, if you are represented by counsel, to your attorney at your attorney's office. Arbittatlon of Disputes. Agreement to arbitrate. In the event of any past, present or future daim or dispute (whether based upon contract, trot, statute, common law or equity) between. you and us arisingg from or relating to your Account, any poor account you have had with us, your application, the relationships which resuR from your Account or the enforceability or scope of this arbtration provision, of the Agreement or of any prior agreement, you or we may elect to resolve the claim or dispute by binding arbitration. IF EFfHER YOU OR WE ELECT ARBRRATION, NETHER YOU NOR WE SHALL HAVE THE RIGHT TO LITIGATE THAT CLAIM IN CDURT OR TO HAVE A JURY TRIAL ON THAT CLAIM. PRE-HEARING DISCOVERY RIGHTS AND POST HEARING APPEAL RIGHTS WILL BE LIMITED. NEITHER YOU NOR WE SHALL BE ENTITLED TO JOIN OR CONSOLIDATE CLAIMS IN ARBffTtATION BY OR AGAINST OTHER CARDMEMBERS WRH RESPECT TO OTHER ACCOUNT'S, OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR MEMBER OF A CLASS OR IN A PRIVATE ATTORNEY GENERAL CAPAdTY ('loss Action Waiver'). Notwithstanding anydting else to the contrary in this arbitration provision, only a covet, and not an arbitrator, shall determine the validity and effect of the Class Action Waiver. Even ff aq parties have opted to Ikigate a daim in court, you or we may elect arbitration with respell to any claim made by a new party or any new daims later asserted in that lawsuit and nothing undertaken therein shall constitute a waiver of any rights under this arbitration provision. We will not invoke our right to arbitrate an individual daim you briny in small daims court ar your state's equivalent court, if any, unless such action 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 Arbitration Ad (FAA). The arbitration shall be conducted, at the option of whoever files the arbitration claim, by either the American Arbitration Assodation (AAA) or JAMS in accordance with their procedures in effect when the claim is filed. For a copy of their procedures, to file a claim or for other information, contact AAA at 335 Madison Ave., Floor 10, New York, NY 10017.5905, _tt_ 12r15A)9 1:36:42 PM www.adr.org (phone 1-800.778-1879) or JAMS at 620 Eighth Ave., Floor 34, New York, NY 10018, www.jamsadreom (phone 1.800.352-5267). No other arbitration forum will be permitted, except az agreed to pursuant to either the Changes to this Agreement section or a writing signed by both parties. H neither AAA nor LAMS is able or willing to -serve as the arbitration administrator and we and you are unable to agree on a replacement administrator or arbitrator, then a court of competent jurisdiction will appoint an administrator or arbitrator or arbitrators fn the raze of an appeal to a panel of three arbitrators az described below). Unless consented 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 praedure that is inconsistent with or purports to override the terms of this section. ff we elect to resolve a claim or dispute by binding arbitration and the arbitrator issues an award in your favor on a daim or daims with respect to which you would not otherwise be entitled to recover your arbitration filing, administrative and hearing fees, reasonable attorneys' fees andlor other arbitration costs, we will be responsible for paying or reimbursing such costs and feet if awarded by the arbitrator. Fees and Costs. At your written request, we will advance any arbitration filing, administrative and hearing fees which you would be required to pay to pursue a daim or dispute as a resuh of our electing to arbitrate that daim or dispute: Send retjua[s to Discover, PO Box 30421, Sah lake City, UT 84130.0421. The arbitrator will dedde who will uhimately be responsible for paying those fees. You will only be responsible for paying or reimbursing our arbitration filing, administrative or hearing fees to the extent you would have been responsible for paying "attomeys' fees and court or other collection costs" had the action proceeded in cpurt,ln no evert will you be required to pay any fees or costs incurred by us in connection with an arbitration proceeding where such a payment or reimbursement is prohibited by applicable law. Hearings and Dedsions. Any arbitration hearing will take place in the federal udidal district where you reside. The arbitrator shall follow applitab~e substantive law to the extent consisteht with the FAA and applicable statutes of lim'rtatiom and shall honor daims of privilege rrcognized at law and shall be authorized to award all remedies permitted by the substantive laws that would apply if the action were pending in court. if requested by any party, the arbitrator shall write an opinion containing the reasons for the award. The arbitrator's decision will be final and binding except for any appeal righu under the,FAA and except that if the amount m controverry exceeds 5100,000, any party may appeal the award within 30 days to a threearbitrator pane4 which shall review the award de noun. Unless applicable law provides otherwise, the appealing party will pay the cost of the appeal, regardless of its outcome. However, we wdl consider in good faith any reasonable request for us to bear the fees charged by the arbitration administrator and the arbitrators in connection with the appeal. Judgmeet upon any award by ;;he arbhrator may be enforced in any court having jur~sdirtion. Other Beneficiaries of this Provision. Our rights and obltgations under this arbitration provision shall inure to the benefit of and be binding upon our parent corporations, subsidiaries, affiliates (including, without limitation, DFS Services LLC), predecessors, suaessors, assigns, az well as the officers, directors and employees of each of these entities, and will also inure to the benefit of any third party named az a co-defendant with us or with any of the foregoing in a claim which is sub1'ect to this arbitration provision. Your rights and obligations under this arbitration provision shall inure to the 12- benefft of and be binding upon all persons contractually liable under this Agreement and all Authorized Users of the Account. Survival of this Provision. This arbitration provision shall survive termination of your Account as well az voluntary payment in full by you, anyy legal praeedings.by us to collect a debt owed by you, any bankruptry by you and. any sale by us of your Account Right to Reject Arbitration. You may reject the Arbitration of Disputes sedioh by providing us a notice of refection within 30 days after receiving a Card, at the following address: Discover, PO Box 30938, Sah lake City, Ui 84130.0938. If you were previously sub)'ect to arbitration with respect to any account with use this right to reject arbitration will not apply to you. Your rejection notice must indude your name, address, telephone number, Account number and signature and must not be sent with any other correspondence. Calling us to indicate that you reject the Arbhration of Disputes section or sending a rejection notice in a manner or format that does not comply with all appliable requirements is insuffident notice. In order to process your notice, we require that the notice be provided by you directly and not through a third party. Rejection of arbitration will not affect your other rights or responsibilities under this Agreement or your obligation to arbitrate disputes under any other account az to which you and we have agreed to arbitrate disputes. tf you do not send a rejection notice, you will be obligated by the Arbitration of Disputes section with respect to this and any pna account you hare had with us, even if you have previously sent a rejection notice with respect to that prig account. LEGAL INTERPRETATION OF THIS AGREEMENT Severability, M any part of this Agreement becomes unenforceable, it will not make any other part unenforceable, except that if the pass Action Waiver set forth above in the Arbitration of Disputes section is invalidated in arty proceeding in which you and we are involved, then the Arbitration of Disputes sscdon will be void whh respell to that praeeding. CompBance with Interest Rate (imitations. We intend that this A reement will comply with applicable interest rate limitations. You will not be required to pay Finance barges or other charges at a rate that is greater than the maximum amount permitted by law. If it is ever finalty determined that, but for this section, the Finance Charges or other charges under this Agreement would exceed the maximum lawful amount, the Finance Charges and other charges will be reduced to the maximum lawful amount Any excess amount that you have already paid will be used to reduce the outstanding balance of your Account or will be refunded to you by means of a check m our disvebon. Governing law. This Agreement and any daim or dispute arising out of this Agreement will be governed by app8cable federal law and, to the exterrt state Ww appl'ies, Delaware law. ASSIGNMENT OF ACCOUNT We may sell, outgo ottransfer your Account or any portion thereof without notice to you. You may not sell, assign or transfer your Account without first obtaining our prior written consent. PwvacY PoucY We are required by federal law to provide you with a copy of our Privary Polity each year. M you have previously notified us about your privary preferences, as descrdted in Section 4, it is not necessary to do so again unless you dedde to change your preferences. -73- i0DCM0_0280K_Tt22AG0210 01361 _reatler.indtl 15-16 72/15/09 1:36:43 PM We Respect Your Privacy Our mission is to provide you with superior products and services, along whh the peace of mind knowing that the security of your personal information is our top priority We understand your concerns about guarding information about you and your Account. We want to azsure you that we have taken steps, and will continue to take steps, to safeguard that irformation. This Privacy Polity describes our efforts to meet these objectives. R includes a summary of the following important information: • A listing of the personal information we collect; • The circumstances in which we may share information with others; The ways we safeguard the confidentialhy 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 Policy carefully, ft will help you understand how we tolled and share information. 1. What Personal Information Do We Collect? To serve you better and manage our business, it is important that we tolled and maintain accurate personal information about you, We obtain this information from applications and other forms you submit to us, from your dealings with us and others, from consumer re orting agencies, and from other sources, such az 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 balances, payment history, your use of your Account and the types of services you prefer from your transactions and other dealings with us and others • Wemay obtain information such as the balances of your loans with other lenders and your payment history with others from consumer reporting agendes. • We may obtain information such as your Internet service provider, your rmail address, your computer's operating system and Web browser, your Web site use and your product and service preferences from your visiu to Web sites 2. is Personal Information Shared with Otherst We limn the sharing of information with others. Many of the offers you receive for products and services are provided directly to you from us For example, a retailer that accepts the Discovers Card may come to us with a special offer for Cardmembers, such as a diuount certificate or product upgrade. After careful consideration of the nature of the offer and the company, we will create a list of Cardmembers who may be interested in the offer based on certain characteristics. We will send the offer directly to those Cardmembers on behalf of the retailer by, for example, including an insert in their monthly billing statement or mailing the offer ourselves. We cohvol the information used to make the offer; we do not share the list or any information about our Cardmembers with the retailer. However, please understahd that 'rf you do receive this type of offer from us and choose to take ad+rantage of it, the retailer may then learn information about you because only Cardmembers with certain characteristics received the offer. There are, however, dreumstances in whidt we may share the information we tolled about you, as described in Section 1, with other companies in order to provide you with access to products and services and to service your Account effectively, as detailed below We require these companies to adhere to our privary standards and to use this information only for the -14- tODCMO_02BOK_Tl22AG0210_01361 reader.indd 17-18 limbed purpose for which it was shared. We do not allow them to disclose it to others without our prior approval. a. Sharing Personal information with Our Corporate Family Our corporate family offers a variety of products and services that can help you manage your finances. In order to provide you with access to these products and services, we may share the informaLon we tolled about you, as described in Section 1, with other members of our corporate family. These companies include financial service providers that offer credit protection, card servicing and payment processing services. b.5haring Persona! Information wish Non-Affiliated Parties for Marketing Purposes We may share the information we tolled about you, as described in Section 1, with non-affiliated third parties, including those that accept the Discover Card, in order to provide you with acceu to products and servides offered directly by these companies that may be of value to you. These companies include financial servce providers, such as insurance companies, and non- finandalcompanies, such az retailers. c. Sharing Personal Information with Others We may share the information we tolled about you, az described in Section 1, with companies that perform support or marketing services on our behalf, such as mailing, market research and data processing; other finaricial institutions with which we have ~'oiM marketing agreements; or companies that are our partners for co-brand credit card programs or reward programs. We may also share sudr information az permitted bylaw. 3. How Do We Protect the Confidentiality, Security and Integrity of Information about Youl n We maintain physical, electronic and procedural safeguards to protect the information we tolled about you. Aueu to suds information is restricted to individuals who need ft in order to senrice your Account or provide products and services to you, and who are trained in the proper handling of such information. Employees who violate these confidentiality requirements are subject to our diurplinary process. Where third parties provide support services, we require them to conform to our privacy standards. h is important that the information we maintain about you is accurate and complete. If you see information in your monthly billing statements or elsewhere which suggests that our information is incomplete or inaccurate, please carte to us at Druover, PO Box 30943, Salt Lake City, UT 84130-0943 so that we can update this information. 4. How Can You Limn Sharing of Information About You? We respell your privacy and offer you dloices as to whether vve may share informatlon aboutyou with others. You havethe option totell us nottoshare the information we tolled about you, as described in Section 1, with non- affiliated third parties You alw have the option to tell us not to share the information we tolled about you, as described in Section 1, wdh companies in our corporate family. If you indicate a preferenee for either of these options, please understand that you may not receive offers for products and services provided by other companies that coukf help you Tower your costs, maximize your finandal resources, or manage your finances. To indicate your preferences, please call us at 1-800.225.5202 or write to Diuover; PO Box 30961, Salt Lake Ctty, Lti 84130-0961. ff you have previously notified us about~rour privay preferences, h is not necessary to do so again unless you decide to change your preferences. Your written request should inclurie your name, address, telephone number and Account number(s) and should not be sent with any other correspondence. In order -15- 12/15/09 7:36:43 PM to process your request, we require that the request be provided by you directly and not through a third party. You will need to provide us with your preferences for each credit card account you have with us. You may notify us about your preferences at any time. Your request will remain in effect unfit you notify us otherwise. We will honor our request and not share this information except as permitted by law. or example, federal law permits us to share information about you with consumer reporting agences, service providers and finandal institutions with which we have joint marketing agreements. If you are a new Cardmember, we will not share any information about you, except az permitted by law, for thirty days aher we provide this Polity to you in order to giveyou an opportunity to inform us about your preferences. K you are an existing Cardmember, please understand that you. may continue td receive marketing offers directly from other companies that were already in production prior to the processing of your request This Privaty Pdiry is provided to the primary Cardmember listed on the Account However, any joint Cardmember has the right to notify us about preferences and we vvrll 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 Prrvary Policies. We reserve the right to amend this Privaty Policy from time to time and we will notify you if we do so. This Privaty Polity is provided to you by Discover Bank and its subsidiaries, which currently include GTC Insurance Agenry, Inc. and Discover Products Inc Unfess otherwise specified, it applies to the family of Discover Cards for consumers and the products and services offered in connection with those Cards, inducting tH~ Wallet Protection card registration service (with the exception of any information registered in connection with the service, which will not be shared). It is part of your Cardmember Agreement and provides a further explanation of how we collect and share information. You may have other rights under state laws that appy to this information. Please note that you will also receive privary notices for other credR card accourrts you have,vvith us, az well as other financial products and services provided to ou by us and our affiliates. You will need to indicate your preferences for each of these separately as disclosed in the notice. Vermont Residents -Your state taw requires financial institutions to obtain yourconserit poor to sharing information about you with others. Except as permitted bylaw, we will not share information we collect about you with non-affiliated third parties of companies in our corporate family uriless you call us at 1.800-015COVER (1.800.347.2683) and authorize us to do so. Califbrnia Residents -Your state law requires financial institutions to obtain your consent prior to sharing information about you with non-affiliated third parties. Except az permitted by law, we will not share information we tolled about you with non-affiliated third parties while you are a resident of California. I Your Billing Rights KEEP THIS NOTICE FOR FUTURE USE This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act 1. Notify tls in Case of Errors or t?irestions Abovt Your BiR H you think your bill is wrong or if you need more information. about a transaction on your bill, write us on a separate sheet of paper at the address listed on your bill for Notice of Billing Ercors. Write to us az soon as possible. We must hear from you no later than 60 days after we sent you the first bill 16~ on which the error or problem appeared. You can telephone us, but doing so will not preserve your rights. In your letter, give us the following information: • your name and Account number. • your dollar amount of the suspected error. • describe the Boor and explain,rf you can, why you believe there is an error. H you need more information, dazaibe the item you are not sure about H you have authorized us to pay your credit card bill automatically from your savings a checking account, you can stop the payment on any amount you think is wrong. To stop the paymerrc, your letter must reach us three business days before the automatic paymerrt n scheduled to occur. 1. Yogr Rights and Our Responsrbiifties After We Receive Your Written Notice We must acknowledge your letter within 30 days, unless we have corrected the ertor by then. Within 90 days, we must either correct the error or explain why we believe the bill waz correct After we receive your letter, we cannot try to collect any amount you question or report you as delinquent We can continue to bill you for the amount you question, including finance charges and we can apply any. unpaid amount against your Account credR lima. You do not have to pa any questioned amount while we are investigating, but you are still obligated to pay the parts of your bill that are not in question. tf we find that we made a mistake on Your bill, you will not have to pay any finance charges related to any quesrtioned amount ff we didn't make a mistake, you may have to pay the finance charges, and you will have to make up any missed payments on the questioned amount In either case, we will send you a statemerrt of the amount you owe and the date that it is due. If you fail to pay the amount that we think you owe, we may report you as delinquent Fbwever, if our explanation does not satisfy you and you wrhe us within ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill. And, we must tell you the name of anyone we reported you to. We must tell anyone we report you to that the matter has been settled between us when it finally is. M we don't follow these rules, we can't tolled the first S50 of the questi~ed amount, even if your bill was correct. 3. Spedal Ruk forCredit Card Purchases ff you have a problem with the quality of goods or services that you purchased with a credit card, and you Vied in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the goods or services. There are two limitations on this right (a) you must have made the purchase in your home state or, if not within your home state, within 100 miles of your current mailing address; and (b) the purchaze price must have been more than 550. These limitations do not apply if we own or operate the merchant ar'rf we mailed you the advertisement for the goods or services. 4. Purchases Made with Checks or Cash Advances The Spedal Rule for Uedit Card Purchases does not apply to purchases made with a balance transfer check, cash advance or promotional purchase check. Therefore, if you have a problem with the quality of goods or services that you purdhased with a balance transfer check, promotional purchase check, cash advance check or the proceeds of a cash advance, you do not have the right to withhold payment of the amount due. . 17 tODCMO 02BOK_TL22AG0210_01367_reader.indd 19-20 12!16/09 7:36:43 PM DESCRIPTION OF COVERAGE SCHEDULED AIR TRAVEL ACCIDENT INSURANCE Discovers Cardmembers are provided with 5500,000 Scheduled Air Travel Accident Insurance.* You, your Spouse, Domestic Partner or eligible Dependent Children for whom a ticket was purchased on your Card (as defined below) will be autamaticaRy insured against Accidental Loss of Life arising from and occurring on a Covered Tnp while you, your Spouse, Domestic Partner or eligible Dependent Children for whom a ticket was purchased on your Card are riding as a passenger in or entering, exhing or being struck by a Scheduled Airuaft or a conveyance operated by a military transport sernce or riding as a passenger in or entering or exfting any conveyance licensed to carry the public for a fee and while traveling directly to or from the airport immediately preteding the departure of a Scheduled Aircraft on which the Insured Person has purchased passage and immediately 'nllo•:,ving tF~• arical ;f ; Sct,rdule Airrrah 1n •;vhich the Insured Person was a passenger. *Coverage is underwritten by Federal Insurance Company, a member insurer of the Chubb Group of Insurance Companies. Certain limitations and exclusions apply. PLAN FEATURES THE BENEFTfS: The full Benefit Amount (SSDO,DOD) is payable for Accidental Loss of Life. The Loss must occur wthin one year of the Acddent: MAXIMUM UMTT OF INSURANCE: If more than one Insured Person suffers a Loss in the same Auident, the Company will not pay more than the maximum limit of insurance (520,000,000) per Accident H an Accident resuhs in Benefit Amounts becoming payable, whidt when totaled, exceed the applicable limft of insurance shown above, the maximum limit of insurance will be divided proportionally among the Insured Persons, based on each applicable Benefit Amountln the event of multiple Accdental deaths per Account arising from anyone Acddent, the Company's liability for all such Losses will be limited to a maximum limit of insurance equal to two times the appPliable Benefit Amount for loss of Life. Benefits will be Proportionately dwided among the Insured Persons up to the maximum emit of insurance. DERNTTIONS: AuideM ar Acddental means a sudden, unforeseen and unexpected event happening by chance; and indudes unavoidable expowre to elements arising from a covered Hazard. Acddental Bodily Iniurvfies) means bodily injury which is Accidental, is the direct source of a Loss, is independent of disease, illness or other cause and occurs while this policy is in force. Account means a Card account Benefirt Amount means the Loss amount at the time the entire cost of the passenger fare is charged to an Account Card means the Giscover Card. Car m ber means the holder of the Card whose name appears on the credit card. Coin°anv means the Federal Insurance Company. Cov T' means travel on a Scheduled AirQaft when the errtire cost of the passenger fare for such transportation, less redeemable certificates, vouchers or coupons, has been charged to the Insured Person's Account. Dependent Child or Children means those children, induding adopted children and those children placed for adoption, who are primarily dependent upon the Insured Person for maintenance and support and who -18- tODCMO_028OK_TL22AG0210_0136t_reader.indd 21-22 are: (1) under the age of 19 and reside with the Insured Person; (2) beyond the age of 19, permanently mentally or physically challenged and incapable of self support; or (3) under the age of 25 and dassified as full-time students at an institution of higher learning. Domestic Partner means a person who: (1) is at least 18 years of age and competent to enter into a contract; (2) is not related to the Insured Person by blood; (3) has exdusively lived wRh the Insured Person for at least one year prior to the date of enrollment; (4) is not legally married or separated; and (S) as of the date of enrollment, has with the Insured Person at least two of the following financial anangements: (a) a joint mortgage or lease; (b) a joim bank account; (c) jointtitle to or ownership of a motor vehicle or status as a joint lessee on a motor vehicle lease; or (d) a joint credit card account with a financial institution. Neither the Insured Person nor the .Domestic Partner can be married to, nor in a civil union with, anyone else. Hgzard means the covered circumstances for which this insurance is provided as stated m Section III of the Dedara[ions, Hazards, and described in the Hazards form, as described on page 1 of this Desviption of Coverage. Insured Person means all Cardmembers, their spouses, Domestic Partners and Dependent Children, az well as authorized users of the Account L~ means the Loss of Life. Loss of Lrfe mearg death, induding dinical death determined by the local governing medical authorities. P r means DFS Services LLC, the entity responsible for the payment o premium. Shceduled Airaa{e means an aircraft owned andlor operated by a Scheduled Aidine. Scheduled Airline means an airline which is either of United States registry and certified by the United States govemment to carry passengen on a regularly scheduled basis or of foreign register and approved by the United States government and the appropnate foreign authority. Vll~r meant hostilities following a declaration of War by a government authority, ff there is no dedaration of War, then (1) armed, open and continuous hostilities between two countries or (2) armed, open and continuous hostilities between two factions, each in control of territory, or daiming jurisdiction over the site of the area of hostility. DISAPPEARANCE ~NEFITS: ff the Insured Person has not been found within one year of the d ranee, stranding, inking, wrecking or breakdown of any kheduled Aircaft or conveyance in which the Insured Person was covered as an ocapant, rt will be assumed, sub'ect to all other terms of the polity, that the Insured Person has suffered Loss o~ Lde covered under this polity. EXPOSURE BENEFRS: Accident indudes unavoidable exposure to elements arising from a covered Hazard. EUGIBILfI'Y: This insurance plan is provided to Insured Persons automatically when the entire cost of the passenger fare(s) on a Scheduled Airline is charged to the Cardmember's Account while the insurance is effective. h is not necessary for you to notify the Poliryholder or the Company when Scheduled Airline tickets are purdtased. EFFECTIVE DATES: Your insurance under this insurance plan is effective on the later of I) April 1, 2007;. or 2) the date you become an eligible Cardmember. Your insurance coverage under this insurance plan will cease on the earlier of: (1) the date the insurance coverage is terminated; or (2) the date you cease to be an eligible Cardmember. _tg_ 12/15N9 1:36:44 PM COST: This insurance plan is provided at no additional cast to eligible Insured Persons for Covered Trips. Policyholder pays the full cost of the insurance. THE BENEFICIARY: The Loss of Life benefit will be paid to the beneficiarryy designated by you. If no such designation has been made; that beneftt xn'll be paid to the first surviving beneficiarryy in the following order. a) your spouse; b) your children; c) your parents d) your brothers and sisters, e) your estate. All other indemnities will be paid to you. It you wish to change your beneficiary, you may request a benefidary designation form by wrsUng to the plan administrator at: The Direct Marketing Group, Inc,13265 Bedford Avenue, Omaha, NE 68164 or at 8eneficiaryrequest@TheDirectMG.com. EXCLUSIONS: This insurance plan does not cover Loss resuhing from: (1) an Acddent occurring while an Insured Person is in, entering, or exiting any airvaft owned, leased or operated by this Policyholder or any aircraft owned, leased or operated by an employee of the Poliryholder on behalf of the Policyholder (this exclusion does not apply to airvaft 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 pilot or crew member (this exclusion does not apply to passengers who temporarilyperformpilot or vewfunctiom in alife threatening emergenry); (3) emotional trauma, mental or physical illness, disease, pregnanry, childbirth or miscarriage, bacterial or viral infection, or bodily malfunctions (except bacterial infection caused by an Atddent or from Accidental consumption of a substance contaminated by bacteria); (4) suicide, attempted suicide or Loss that is intentionally selff-inflicted; or (5) declared or undeclared War. CLAIM NOTICE: Written claim notice must be given to the Company within 90 days after the occurrence of any Loss covered by this policy or at soon as reasonably possible. Failure to give notice vvithin 90 days will not invalidate or reduce any otherwise valid claim if notice is given as soon as reasonably possible. CLAIM FORMS: When the Company receives notice of a claim, the Company will send you forms for giving proof of Loss to us within 15 days. If you do not receive the forms, you should send the Company a written desgiption of the Loss. CLAIM PROOF OF LOSS: Complete proof of Loss must be given to Company within 90 days after the date of Loss, or as soon as reasonably posssble. Failure to give complete proof of Loss within these time frames will not invalidate any otherwise valid claim if notice is given as soon as reasonably possible and in no event later than one year after. the deadline to submit complete proof of loss. CL41M PAYMENT: The Company will pay you or your beneficiary the applicable Benefit Amount within 60 days after complete proof of Loss is received and if you, the Poliryholder and/or the beneficiary have complied with all the terms of the policy. ARBITRATION: In the event of a dispute under this policy, either the Company or the Insured Person may make a written demand for arbitration. In that case, the Company and the Insured Person will each select an arbitrator. The two arbRrators will select a third. ff they cannot agree within 15 days, either the Company or the Insured Person may request that the choice of arbitrator be submitted to the American Arbitration Association. The arbhration 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 t-800-CLAIMS-0 (1.800-252-0670). Yau can also go to the Company Web site (www.chubb.com), click on Report a Loss, select Accident, Benefits and Life claims, select the appropriate form, print out the claim form, fill out and mail. You can file a claim by mail or fax. ' Mailing Address CHUBS GROUP OF INSURANCE COMPANIES CLAIMS SERVICE CENTER 6D0 INDEPENDENCE PARKWAY PO BOX 4700 CHESAPEAKE, VA 23327-0700 Fax Number. i-800.300-2538 As a handy reference guide, please read this and keep it in a safe place with your other insurance documents. This desviption of coverage is not a contract of imurance but is a summary of the principal provisions of the insurance while in effect Complete ~licy provtsioru are contained in the Master Policy, which can be obtained from the Policyholder: Policy tt9906.18-06 Pollcy Underwritten By Plan Administrator Federal Insurance Company The Direct Marketing Group, Inc a member insurer of the 13265 Bedford Avenue Chubb Group of Insurance Companies Omaha, NE 68164 15 Mountain View Road, PO Box 1615 Warren, N107D61-1651 DESCRIPTION OF COVERAGE SECONDARY RENTAL CAR COLLISION COVERAGE Discover. Cardmembers can benefit from the security and safety offered through Excess Collision Damage Waiver. ff you rent a vehicle for 31 consecutive days or less (or 45 days under certain circumstances described below) with your Card (as defined below), you maybe eligible for benefits under this coverage. Excess Collision Damage Waiver it an insurance program, underwritten by Federal Insurance Company Policy #9906-17-63 (the "Polity"). DEFINITIONS: Account means a Card account Actual Cash Value means the cost to repair or replace the Rented Automobile at the time of loss, less depreciation. SiCS~.C~[ means the holder of the Card whose name appears on the vedit wrd. ~ means the Discover Card. Collision Damage means the direct and acddental damage to a Rented Automobile caused by upset or collision with another object Collision Damage does not include lass caused by missiles, falling ob)~ects, fire, theft or larceny, explosion, earthquake, windstorm, hail, water, flood, malicious mischief or vandalism, riot or dull commotion. Comoanv means the Federal Insurance Company. Inwred means Cardmembers and authorized users of the Account. Poligrhdder means DFS Services LLC, the entity responsible forthe payment of premium. Rental Aaencv means a commerdal automobile rental company licensed under the laws of the applicable jurisdiction. Rented Automobile means afour-wheeled private passenger type motor vehicle or a minivan manufactured and designed to transport a maximum of seven passengers and used excursively to carry passengers. A Rented -21- I tODCMO_0280K_TL22AG0210_01361 reader.indd 23-24 12/15/09 1:3fi: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, automatically when the entire rental fee for the Rented Automobile is charged or debited to your Account. It is not necessary for you to notify the Company at the time the rental fee is charged or debited to your Account. • You must decline the LosslDamage Waiver offered by the vehicle Rental • You T ust rent the vehide in your own name and sign the vehicle rental agreement/contract • The coverage period will not exceed 31 consecutive days, or 45 consecutive days rf the Insured is an employee of an organization which has provided a Card to the Insured for business use. THE KIND OF COVERAGE YOU RECEIVE: In i:onsideration of the premium paid by the Policyholder as required, and wbjea to all the terms of the Polity, the Company agrees to reimburse on an Actual Cash Value basis either the Insured or the Rental Agency for repair or replacement of the Rented Automobile as a resuh of Collision Damage to the Rented Automobile. The Company's liability will be for a maximum reimbursement of 525,000. In no event will the Company be liable beyond the amourrts actually paid by the Insured or the Rerrtal Agenry. • If you or an Insured's primary vehide insurance or other coverage has made payments for a covered loss, Excess Collision Damage Waiver will cover your deductible and any other eligible amounts not toveredrby 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 cover you for any damages to other ve~ides or property It does not cover you for any injury to any party. WHO IS COVERED: • Discover Cardmembers ' EXCLUDED RENTAL VEHICLES: Off-road, antique or limited edition motor vehides; trucks; recreational :eh~,aes. .ampers, pick;q Trucks, and mTn~-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 SSO,000, and antiqque mkrtor vehides are defined as any vehide over 25 years old, or any vehide which has not been manufactured for 10 years or more. WHERE YOU ARE COVERED: • 'overage applies [o vehicles rented anywhere in the world. • Coverage is not available where prohibited bylaw. WHAT IS ~ COVERED: i Coverage does not apply to loss resuhing from the following: • Any dishonest, fraudulent or criminal act of the Insured. • Forgery 6y the Insured. • Loss due to war or confiscation by authorities. • Loss due to nuclear reaction or radioactive contamination. • The Insured being intoxicated, as defined by the laws of the jurisdiction where the loss occurred, or under the influence of any narcotic unless prescribed by a physician. • Use of the Rented Automobile to carry passengers and property for hire. -22- 10DCM0_02BOK TI22AG0210 01361 reader.indd 25-26 • Use of the Rented Automobile by a person other than the one authorized to operate the Rented Automobile by the terms of the Rental Agreement. • Loss of use of the Rented Automobile. • Intentional damage to the Rented Automobile by the Insured. • Damage which is due and confined to wear and tear, freezing, mechanical or electrical breakdown or failure. • Damage to tires unless the loss is coincident with a covered loss. • Use of the Rented Automobile in tests, races or contests. • The Rented Automobile being operated or located in any territory prohibited by the terms of the Rental Agreement FOR INSUREDS WHO ARE NEW YORK STATE RESIDENTS: To the extent that tha plan provides insurance against damage to a rented motor vehicle, the following terms and conditions apply: (1) the period of insurance coverage will not exceed 31 comecutive days, or 45 consecutive days if the Inured is an employee of an organization which has provided the Card to the Insured for business use; and (2) the insurance provtded by this plan will be excess over any other valid and collectible insurance cover- ing the Rented Automobile. However, the insurance provided under this plan may be pprrimary if specifically provided for under the terms of this plan andrf the following critena is met (a) the Rented Automobile is rented for use outside the United States, its terrhories and possessions, (b) the Insured is an employee of an organization which Etas provided the Card to the Insured for business use; and (cJ the Rented Automobile is rented without a driver. HOW TO FlLE A CLAIM UNDER EXCESS COWSION DAMAGE WAIVER: In the event of a daim, written ar verbal notice must be provided as soon as reasonably possible. IF YOU HAVE ANY CLAIM RELATED QUESTIONS, PLEASE CALL THE CLAIMS SERVICE CENTER AT 100-CLAIMS-0 (1-BOa252.4670). You ran also go to the Company Web site {www.dwbb.wm), dick on Report a Loss, select Acddent Benefits and Life daimc, select the appropriate form, print out the daim form, fill out and mail. You can file a claim by mail or fax. MaBing Address: CHUBB GROUP OF INSURANCE COMPANIES CLAIMS SERVICE CENTER 600 INDEPENDENCE PARKWAY PO BOX 4700 CHESAPEAKE, VA 23327-4700 Fax Number. 1-800.300.2538 CLAIM PROCEDURE: The Insured must send the Company written notice of a claim, including the Insured's name and Polity number, within 90 days after a covered loss occurs. tf notice cannot be given within that time, it must be given as soon as reasonably possible. To file a swum Proof of Loss, the Insured must send the following information to the Company or its authorized representative: • A copy of the Account statement showing the automobile rental transacGOn, • A copy of the automobile rental agreement • A copy of the police report. • A copy of the initial claim report submitted to the automobile Rental Agenry. • A copy of the paid claim presented by the automobile Rental Agenry for the Collision Damage for which the Insured is responsible. -23- 12/15/09 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 statementfrom 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 contrail of insurance but is simply an informative statement to eligible Insureds of the principal provisions of the insurance while in effect. Complete provisions pertaining to this plan of insurance are contained in the master policy on file with DFS Services LLC, herein refened td as the Policyholder. If a statement in this Summary of Coverage and any provision in the polity differ, the polity will govern. Polity Underwritten By Plan Adminirtrator Federal Inwrance Company ("Company") The Direct Marketing Group, Inc a member of the 13265 Bedford Avenue Chubb Group of Insurance Companies Omaha, NE 68164 15 Mountain View Road, PO Box 1615 Warren, NJ 07061-1651 Master Polity Number. 9906.17-63 Effective date of benefits: Effective AprO 1, 2007, this guide replaces all prior disclosures, pro ram desviptions, advertising, and/or brochures by any party. Poliryholder and Company reserve the right to change the benefits and features of these programs at any time. Cancellation: Policyholder can cancel these benefits at any time or choose hat to renew the insurance coverage fa all authorized Cardmembers. ff Poliryholder does cancel these benefits, you will be notified at least 60 days in advance. If the Company terminates, cancels, or chooses not to renew the coverage to Poliyholder, you will be notrfed as soon as is practicable, Insurance benefits will still apply for any benefits you were eligible for prior to the date of such terminations, cancellation, anon-renewal, subject to the terms and conditions of coverage. Benefits to you: These benefits apply onlyto Cardmemhers whose cards are issued by U.S. finandal institutions. The United States is defined as the 50 United States, the District of Columbia, American Samoa, Puerto Rico, Guam and the U.S. Virgin Islands No person or entity other than the Cardmember shall have any legal or equitable right remedX or daim fa _ insurance proceeds and/a damages under or arising out of this coverage. These benefits do not apply if your Card privileges have been cancelled. However, insurance benefits will still apply for any benefit you were eligible for prior to the date that your Account is suspended or cancelled subject to the terms and conditions of coverage of your Cardmember Agreemerit. Transfer of rights or benefits: No rights or benefits provided under these insurance benefits may be assigned without the prior written consent of the Company. Misrepresentation and Fraud: Coverage of the Insured will be void if, at any time, the Insured has concealed or misrepresented any material fad a circumstance conceming this coverage or the subject thereof or the interest of the Insured herein, or in case of any fraud or false swearing by the Insured relating thereto. Cdverage for an Insured will be voidrf, whether before or after a loss, the Policyholder or its subscribing organization(s) has concealed or za tODCMO_02BOK_TL22AG0210_01361 reader.indd 27-28 misrepresented any material fad or circumstance concerning this coverage or the subject thereof or the interest of the Insured therein, or in case of any fraud a false swearing by the Poliryholder or its subso-ibing organization(s) relating hereto. Addition of New Insureds: All eligible persons will be automatically insured under this Polity. ' Examination Under Oath: h is a condition of this insurance that the Insured and the Policyholder, as often as may be reasonabH required by the Company, wilt submit, and within its power cause others to submit, to examinabons under oath and will produce for examination all writings, books of account, bills, invoices and other vouchers, or certified copies thereof 'd originals are lost, at such reasonable time and place as may be designated by the Company or its representative, and will permit extracts and copies thereof to be made. No such examination under oath, examination of documents or any other ad of the Company, its employees or representatives in connection with the investigation of any lou or claim will be deemed a waiver of any defense and such acts shall be deemed to have been made or done without prejudice to the Company's liability. No Benefit to Others: This coverage will in noway inure directly or indirectly to the benefit of arty insurer, person or organization a other bailee. Subrogation: ft is a condition of this insurance that if the Company pays the Insured for a lass, R will require the Insured to assign and transfer anyclaim or right of action aggainst any individual, firm or corporation for wch loss to the Company or subrogate or hold in trust all wch rights to the extent of the amount paid. The Insured will agree to take action as requested by the Company to enforce such rights. Upon payment by the Company to the Insured, the Insured agrees to dyed enforcement of such nghts gs reasonably requested by the Company and to return to the Company any recovery to the extent paymerst of loss has been made by the Company. Arbitration: In the event of a dispute under this polity, eitherthe Company or the Insured may make a written demand for arbitration. In that wse, the Company and the Insured wiA each select an arbiVator. The two arbiUators will select a third. 'd they cannot agree within 15 days, either the Compady or the Inwred may request that the choice of arbitrator be submitted to the Amerian Arbitration Association. The arbitration will be held in the state of the Insured's prindpal residence. GLOBAL TRAVELER'S HOTLINE TERMS AND CONDITIONS The Global Traveler's Hotline provides Cardmembers and their families,a wide range of free travel assistance benefits. k is operated by AXA Assistance USA, Inc VisR Discovercard.comhravel to learn more. EBgibility. You must be a Cardmember whose Account is in food standing, the Cardmember's spouse or dependent child traveling with the Cardmember or an Authorized User of an Accourrt in good standing. Third•Party Charges. Global Traveler's Hotline is not insurance, so-you will be responsible for all third-pa fees and expenses for services requested, such as professional or medical fees. Availability of Services. Certain services may not be available in all areas. Call us at 1-80aDI5COVER (1-BOa347-2683) for assistance a if you have questions about a spedfic destination. Outside the U.S., call us tolled at 1.801-902.3100. While AXA Assistance will make every reasonable effort to provide the services, neither AXA Assistance nor Discover Bank or our respective affiliates will be liable if a service is not provided dr for any services that are provided by third parties. The services and these terms and conditions are subject to change without notice. -25- 12/75/09 1:36:44 PM ~~~~~ EXHIBIT "C" DISC AVER New Balance ;Minimum Payment Dua I Account Number ending in S1B$ 50.00 ! $3,397.00 I Enter Amount Enclosed Below Payment Due Date Sapbmber 26, 2010 31 SDSN6AD7 0004855 MARY MEHRPUYAN 35 DEUDNSHIRE SQ MECHANICSBURG PA 17050-6878 Address, e-mail or telephone change$ Go to www.Discowr.com or print change in space above. Go paperless and make your account information more secure wdh password- protected statements only you can access. Learn more at discover.com/paperless. PO BOX 6103 Illurllunrllnnllrllnl CAROL STREAM IL 60197-6103 Irllrrllrrrrrrlllrlrrlrrrlrllrrrrrllllrrrrrllrllrrr,rllrrlrrll 70~ oats: August 26, 2010 - Dosing Date: Discover More Card Account Summary I Account number ending in 5185 Previous Balance $17,910.42 Payments And Credits - 17,910.42 Purchases + 0.00 Balance Transfers + 0.00 Cash Advances + 0.00 Interest Charged + 0.00 Fees Charged + 0.00 Naw Balance ~0 ~ See Interest Charge Calculation section following transactions for detailed APR information Credit Line $14,500.00 Credit Line Available $0.00 Cash Advance Credit Line $10,900.00 Cash Advance Credit Line Available $0.00 twee 1 of 1 31, 2010 Payment Information New Balance $0.00 Minimum Payment Due $3,397.00 Payment Due Date September 26, 2010 lab Payment Wamirg: If we do not receive your minimum payment by the date listed above, you may have to pay a late fee of up to $35.00 and your purchase and balance irans(er APRs for new hansactions may be increased up }o the Penalty APR of 23.24% variable. Manage Your Account Online at wwvr.Discover.com • Securely access statements and Free online tools, pay bills online and hack and view all transactions simply and easily • Make your money worth moraSM-find easy ways to earn and redeem cash rewards • NEWT Access your account securely through your mobile phone 3 Easy Ways to Contact Us Cashbac c Bonus® A 1 Access your occounf securely at www Dixowr c . . om nniversary Month 2. Call 1.800-DISCOVER (1-800.347-2683 January Please have your Discover®card avoilab e Opening Cashback Bonus Balance . $ 0.00 3. Write to us at Discover PO Box 30943 Naw Cashback Bonus This Period , , + 0,00 Salt Lake City, UT 84130 Cashback Bono: Balance $ 0.00 For TDD (Telecommunications Device For the DeaF) To loom more, log in or www.Discovar.com assistance, please call 1-800-347-7449. Transactions Trans, post Dab Dab Payments and Credits Aug 31 Aug 31 INTERNAL CHARGE-OFF $ .17,910.42 FOO9 TOTAL FEES FOR THIS PERIOD $ 0.00 tntersst Charged - TOTAL INTEREST FOR THIS PERIOD $ .000 2010 Totals Year-to-Date TOTAL FEES CHARGED IN 2010 $ 890 17 TOTAL INTEREST CHARGED IN 2010 2,576.12 Interest Charge Calculation Your Annual Percentage Rate (APR) is the annual interest rate on your account. Curtent BRling Period: 6 dogs ~~ ~R'ERCENTAGE INT~ST RATE ECi TO INTEREST CHARGE Purchases 18.24% V $0 $0 Cash Advances 23.99% V $0 $0 V =Variable Rafe Additional Important Information Important In/ormation. if there .: mom than one prge ro this billing statement, see the bock of eoch page for additional imporloN inFormvrion. Continued on reverse side. - __. DISCOVER SHERIFF'S OFFICE OF CUMB"FI COUNTY Ronny R Anderson or THE P"THONOTARY Sheriff DEC 13 1. Jody S Smith Chief Deputy CUMBERLAND CHNTY Richard W Stewart PEMSYLVAWA Solicitor Discover Bank Case Number vs. 2010-7404 Mary A. Mehrpuyan SHERIFF'S RETURN OF SERVICE 12/06/2010 09:11 PM - Dennis Fry, Deputy Sheriff, who being duly sworn according to law, states that on December 6 2010 at 2111 hours, he served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Mary A. Mehrpuyan, by making known unto herself personally, at 35 Devonshire Square Mechanicsburg, Cumberland County, Pennsylvania 17050 its contents and at the same time handing to her personally the said true and correct copy of the same. DENNI RY, DEP SHERIFF COST: $37.00 December 08, 2010 SO ANSWERS, ' RON R ANDERSON, SHERIFF ;e) Gou-?'ySuite SFel, Teleosoft, Inc. cR 4C-N/- A PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted in triplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for the next Argument Court.) ------------------------------------ -------------------------------------------------- - CAPTION OF CASE , C:) (entire caption must be stated in full) 3 Discover Bank rncD Wi " t*p'1 C-- ?-` j Plaintiff J t ? M vs. Z l+ - ZI: V Mary A Mehrpuyan , 0 ? Defendant 10-7404 N c:, civil TqT j Ca o. a 1. State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to complaint, etc.): Preliminary objection to complaint 2. Identify all counsel who will argue cases: (a) for plaintiffs: Edward Stock, Esq (Name and Address) 804 West Avenue Jenkintown PA 19046 (b) for defendants: Mary Mehrpuyan (Name and Address) 35 Devonshire Sq Mechanicsburg PA 17050 3. 1 will notify all parties in writing within two days that this case has been listed for argument. Edward Stock, Esquire 4. Argument Court Date: Date: 12/22/2010 Mary Mehrpuyan Print your name Attorney for INSTRUCTIONS: 1. Original and two copies of all briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) before argument. 2. The moving party shall file and serve their brief 12 days prior to argument. 3. The responding party shall file their brief 5 days prior to argument. 4. If argument is continued new briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) after the case is relisted. 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 Plaintiff VS. MARY A. MEHRPUYAN 35 Devonshire Square Mechanicsburg, PA 17050-6878 Defendant (s) Attorney for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION-LAW NO. 2010-7404 cTa c.... °< O PRAECIPE FOR DEFAULT JUDGMENT TO THE PROTHONOTARY: Enter Judgment by Default in favor of the Plaintiff, Discover Bank, and against the Defendant(s), Mary A. Mehrpuyan, for failure to Answer the Civil Action Complaint. Assess Plaintiff's damages in the sum of $17,910.42 in accordance with the prayer of the Complaint. DATE: 1/7/11 1c/.6 0 Pd A- j S--yffi/ 3 c%5 I EDWARD STOC ?S IRE AFFIDAVIT OF NON MILITARY SERVICE Edward Stock, Esquire, being duly sworn according to law, deposes and says: (a) That the Defendant(s) is/are not in the Military or Naval Service of the United States or its Allies, or otherwise within the provisions of the Soldiers' and Sailors' Civil Relief Act of Congress of 1940 as amended; (b) That Defendant, Mary A. Mehrpuyan, is an adult individual and resides at 35 Devonshire Square, Mechanicsburg, PA 17050-6878. (c) That Defendant, , is an adult individual and resides at Affiant has ascertained the foregoing information by personal investigation and makes this Affidavit in due authority; and he understands that the statements herein are made subject to the penalties of 18 Pa. C.S. Sec. 4904, relating to unswom falsification to authorities. ,e DISCOVER BANK Plaintiff COURT OF COMMON PLEAS LEHIGH COUNTY CIVIL ACTION-LAW vs. MARY A. MEHRPUYAN Defendant(s) NO. 2010-7404 CERTIFICATION UNDER PA. R.C.P. 237.1 EDWARD STOCK, ESQUIRE, Attorney for Plaintiff, Discover Bank, certifies that he sent a copy of the attached Notice on December 27, 2010 by regular mail, to the Defendant(s) at the address at which the Defendant(s) was/were served with a copy of the Complaint by the Office of the Sheriff indicated by the court records. DATE: 1/7/11 7)6 EDWARD STOCK, 36QUIkE Attorney for Plaintiff DISCOVER BANK Plaintiff vs. MARY A. MEHRPUYAN Defendant(s) TO: Mary A. Mehrpuyan 35 Devonshire Square Mechanicsburg, PA 17050-6878 Date: December 27, 2010 COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION-LAW NO. 2010-7404 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE, IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. LAWYER REFERENCE SERVICES COURT ADMINISTRATOR-CUMBERLAND COUNTY COURTHOUSE 4TH FLOOR, ONE COURTHOUSE SQUARE CARLISLE, PA 17013 (717) 240-6200 49:; :? i EDWARD OCK, ESQUIRE Attorney for Plaintiff 804 West Avenue Jenkintown, PA 19046 (215) 576-1900 NAME AND ADDRESS CERTIFICATION I hereby request the Prothonotary to enter the within judgment against: Mary A. Mehrpuyan 35 Devonshire Square Mechanicsburg, PA 17050-6878 defendant(s) within named, the last named address of the defendant or defendants being as shown above, and I hereby certify that the precise address of the Judgment Creditor is: Discover Bank 12 Reads Way New Castle, DE 19720 Plaintiff (Signature required for filing) s PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted in triplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for the next Argument Court.) ------------------------------------------------------------------------------------------------------- CAPTION OF CASE (entire caption must be stated in full) r =-' mac; V FV,. ?+ro,? vs. UQ TT h (iiM?T State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to complaint, etc.): m 1,?i'AA 2. Identify all counsel who will argue cases: (a) for plaintiffs: c 7- n '4 112 k V Cie-, FY'y (N me and ddr ss) C.-) Q-1 !n w?n r? l {fin r{ I o, j ?v5? 3. 1 will notify all parties in writing withir two days that this case has been listed for argument. 4. Araument Court Date- Print your' name COW 1-7 L,/ 5-"L° A rney for ate: ,?- INST CU"'C T 10 N S: 1. Original and two copies of all briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) before argument. 2. The moving party shall file and serve their brief 12 days prior to argument. 3. The responding party shall file their brief 5 days prior to argument. 4. If argument is continued new briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) after the case is relisted. ?A No.- a (1 T _ T-err jV0q,h40 WA) ra, ? q o ? (b) for defendants: