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HomeMy WebLinkAbout11-5409 PROOF OF SERVICE OF NOTICE OF APPEAL AND RULE TO FILE COMPLAINT (This proof of service MUST BE FILED WITHIN TEN (10) DAYS AFTER filing the notice of appeal. Check applicable boxes.) COMMONWEALTH OF PENNSYLVANIA COUNTY OF _ MONTGOMMY ; ss AFFIDAVIT: I hereby swear or affirm that I served: ? A copy of the Notice of Appeal, Common Pleas No. 11-5409 Civil upon the District Justice designated therein on (date of service) July 8 .20 11 ? by personal service k by (certified) (registered) mail, sender's receipt attached hereto and upon the appellee, (name) Michael J Pvkosh, Esquire on July 8 , 20 11 ? by personal service ? by (certified) (registered) mail, sender's receipt attached hereto. ? And further that I served the Rule to File a Complaint accompanying the above Notice of Appeal upon the appellee(s) to whom the Rule was addressed on 20 13 by personal service ? by (certified) (registered) mail, seLz r t i attached hereto. -02 "` -4 mco C-D D X C') -pp r' ?+ SWORN (AFFIRMED) AND SUBSCRIBED BEFORE ME = 8th THIS DAY OF July 20 11 / Signature affiant Not Public Signature of affiant Title of official My commission expires on 20 COMMONWEALTH OF PENNSYLVANIA NOTARIAL B pAbL Kimberly Deluli.s-Notary Jenkintown &fo- Montgomery County MY COMMISStON EXPIRES JAN. 17, 2014 Revised 12/2003 Discover vs. Buffington, M. U S . . P ost al Ser vice , C E R TIF IED MAI L , REC EIPT (Do me t i s c M ail Only ; No Ins ur ance C overage P rovided) For d elive ry Inf ormati o n visit ou r website a t www.usns c.,., . CI IU O CD CI p Return Receipt Fee C3 (Endorsement Required) 0 Restricted Delivery Fee CI (Endorsement Required) 0"' lU Total Postage & Fees CI t_ CI r3 CI M1 U S . . Post al Ser vic CER e TIF IED MAI (Domesti L R C E I P T iiiiiiii c M i iiiiiiiiiiiillillillillillillilliil al Only ; No lns ? i lillillillillI T1 F d li urancc' C overage P r e ver 1 nation vi i rovided) ??„ s t ou r webs?r? _,? .. O --..ou reE 0 O Return Receipt Fee (Endorsement Required) 0 Restricted Delivery R q Fee CI e uired) Cr tU 0 Total Postage & Fees iI / 0 N July 8, 2011 Hon. Thomas A. Placey District Court 09-3-04 5275 East Trindle Road Suite 110 Mechanicsburg, PA 17050 Michael J. Pykosh, Esquire Dethlefs Pykosh Law Group 2132 Market Street Camp Hill, PA 17011-4706 Re: Discover Bank vs. Michael L. Buffington District Court 09-3-04 No. CV-288-11 Court of Common Pleas Cumberland County No. 11-5409 Civil Dear Mr. Pykosh: On behalf of the plaintiff, Discover Bank, enclosed please find a true and correct copy of a Notice of Appeal, the original of which was filed with the Court of Common Pleas of Cumberland County on July 1, 2011 in regard to the above matter. Please be guided accordingly. Respectfully, FRANCIS X. GRIMES FXG:kd Enclosure CERTIFIED MAIL, RRR THIS COMMUNICATION IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. July 8, 2011 Hon. Thomas A. Placey District Court 09-3-04 5275 East Trindle Road Suite 110 Mechanicsburg, PA 17050 Michael J. Pykosh, Esquire Dethlefs Pykosh Law Group 2132 Market Street Camp Hill, PA 17011-4706 Re: Discover Bank vs. Michael L. Buffington District Court 09-3-04 No. CV-288-11 Court of Common Pleas Cumberland County No. 11-5409 Civil Dear Judge Placey: On behalf of the plaintiff, Discover Bank, enclosed please find a true and correct copy of a Notice of Appeal, the original of which was filed with the Court of Common Pleas of Cumberland County on July 1, 2011 in regard to the above matter. Please be guided accordingly. Respectfully, FRANCIS X. GRIMES FXG:kd Enclosure CERTIFIED MAIL, RRR THIS COMMUNICATION IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. Stock & Grimes, By: Francis X. I.D.## 62404 804 West Avenue Jenkintown, PA (215) 576-1900 LLP Grimes, Esquire Attorney for Plaintiff 19046 DISCOVER BANK 12 Reads Way New Castle, DE 19720 Plaintiff VS. MICHAEL L. BUFFINGTON Apartment 4 3605 Kohler Place Camp Hill, PA 17011-2715 Defendant(s) r? 1., C'-3 rncu ,r t'*d - COURT OF COMMON PLEAM & f - CUMBERLAND COUNTY, FC> N CIVIL ACTION-LAW r 2! ED o ?j NO. 11-5409 Civil D yc i YOU HAVE BEEN SUED IN COURT. IF YOU WISH TO DEFEND AGAINST THE CLAIMS SET FORTH IN THE FOLLOWING PAGES, YOU MUST TAKE ACTION WITHIN TWENTY (20) DAYS AFTER THIS COMPLAINT AND NOTICE ARE SERVED, BY ENTERING A WRITTEN APPEARANCE PERSONALLY OR BY AN ATTORNEY AND FILING IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. YOU ARE WARNED THAT IF YOU FAIL TO DO SO THE CASE MAY PROCEED WITHOUT YOU AND A JUDGMENT MAY BE ENTERED AGAINST YOU BY THE COURT WITHOUT FURTHER NOTICE FOR. ANY MONEY CLAIMED IN THE COMPLAINT OR FOR ANY OTHER CLAIM OR RELIEF REQUESTED BY THE PLAINTIFF. YOU MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IMPORTANT TO YOU. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO THE TELEPHONE OR THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 32 SOUTH BEDFORD STREET CARLISLE, PA 17013 1-800-990-9108 717-249-3166 STOCK & GRIMES, LLP Attorney for Plaintiff BY: FRANCIS X. GRIMES, ESQUIRE I.D. #62404 804 West Avenue Jenkintown, PA 19046 (215) 576-1900 DISCOVER BANK COURT OF COMMON PLEAS 12 Reads Way CUMBERLAND COUNTY, PENNSYLVANIA New Castile, DE 19720 CIVIL ACTION-LAW Plaintiff No.: 11-5409 CIVIL vs. MICHAEL L. BUFFINGTON 3605 Kohler Place, Apt. 4 Camp Hill, PA 17011-2715 Defendant(s) CIVIL ACTION COMPLAINT COUNT I - CONTRACT 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. DB Servicing Corporation, successor to 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 DB Servicing Corporation, successor to DFS Services LLC. 5. The Defendant, is an adult individual believed to be residing at the address contained in the above caption. 6. Plaintiff issued a Discover credit card to the Defendant so that the Defendant could make purchases or other forms of credit from various merchants who were authorized to accept the credit card from the Defendant in lieu of payment by the Defendant to the merchants. 7. The Defendant received the physical credit card issued by the Plaintiff, together with a Cardmember Agreement (extension of credit agreement), which agreement contains the terms and conditions governing the use of the credit card between the parties hereto. Plaintiff attaches hereto as Exhibit "A" a copy of the Cardmember Agreement applicable to the Defendant account. 8. The cardmember agreement is in writing however is not signed and is not required to be signed by the parties as the cardmember agreement only becomes effective and assented to by the Defendant upon the use of the credit card. 9. 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. Attached hereto as Exhibit "B" is a copy of the Defendant's monthly cardmember statements for the period ending December 2, 2010. 10. The Defendant by their acceptance and use of the Discover card have assented and 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. 11. The Defendant by his/her use and conduct of the Discover Card have impliedly represented to the credit card issuer that the Defendants have the ability and the intention to pay for the use of the Discover credit card. 12. Plaintiff believes, and therefore avers, that the Defendant last payment in regard to their Discover obligation was processed on or about May 28, 2010 and as a result thereof, the Defendant is in breach of their obligation to the Plaintiff; and as a further result thereof, the obligation of the Defendant to satisfy the entire balance in regard to the credit card account became accelerated. 13. The outstanding balance which was due on the credit account as of January 31, 2011 was $5,528.83; 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. 14. In addition to the balance on the account as indicated above, the Plaintiff may incur additional damages for accrued interest, attorney fees and costs and request payment of the same by the Defendant pursuant to the terms of the Cardmember Agreement and/or applicable law. 15. The Defendant has not reported any disputes in writing within sixty (60) days relating to his monthly statements pursuant to 15 U.S.C. $1601. 16. Plaintiff, through its counsel's investigation, has determined that the Defendant are not in the military service. 17. 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, Michael L. Buffington, in the sum of $5,528.83, plus reasonable attorney fees, costs and pre- judgment interest in accordance with law. COUNT II - UNJUST ENRICHMENT 18. 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. 19. 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. 2u. 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 $5,528.83, to Plaintiff's detriment. WHEREFORE, Plaintiff, Discover Bank, demands Judgment against the Defendant, Michael L. Buffington, in the sum of $5,528.83, plus costs and pre judgment interest in accordance with law. /? 41 DATE: ? FRANIS X. GRIMES, ESQUIRE Attorn y for Plaintiff VER FICAT1ON I, JAMES BALL, hereby state that I hold the position of Team Leader with DB Servicing Corporation, and that I am authorized to take this Verification on behalf of DB Servicing Corporation, successor to DFS Services LLC, the servicing affiliate of Discover Bank. I certify that Discover Bank is issuer and owner of the credit card obligation of Michael L. Buffington (card number 1193) and that the balance owed as of January 31, 2011 was $5,528.83. The Plaintiff lacks sufficient knowledge or information to execute this verification, however, l have sufficient knowledge and information in my position as Team Leader with DB Servicing Corporation which is a subsidiary of Plaintiff and is the servicing affiliate of Plaintiff. THAT, in my capacity as Legal Placement Account Manager, I have access to records regarding the Discover Card Account of the above referenced Debtor(s), further, that I have personally inspected said Account and statements regarding the balance due on said account. DB Servicing Corporation maintains these records in the ordinary course of business. 1 further certify that Discover Bank is the owner of the credit card obligation of Defendant(s), and that the facts contained in the within pleading are true and correct to the best of his knowledge, information and belief. I understand that the statements made herein are made subject to the penalties of 18 PA. C.S. Section 4904 relating to unsworn falsification to authorities. Date: DISCOVER YOUR DISCOVER' ACCOUNT CARDMEMBER AGREEMENT ................ Pages 1-13 The terms and conditions of your Account, including how we calculate finance charges, our fees and an Arbitration of Disputes section. You have the right to reject the arbitration provision with respect to your new Account within 30 days after receiving your Card, as explained in the "Right to Reject Arbitration" section at page 13. PRIVACY POLICY ......................... Pages 13-16 A summary of the personal information we collect, when it may be shared with others, and how we safeguard the 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 tickets or rent an automobile. GLOBAL TRAVELER'S HOTLINE ..................Page 25 The terms and conditions of this free travel assistance benefit. 02010 Discover Bank, Member FDIC TL22AG.0210 10DCM0_02BOK_TL22AG0210_01361_reader.indd 1-2 12115/09 1:36:41 PM CARDMEMBER AGREEMENT Please read this Agreement carefully before using your Discover® Card Account it contains the terms and conditions of your Account, some of which may have changed from earlier materials provided to you. In the event of any differences, this Agreement shall control. We respect your privaryc See the Privacy section on page 10 and our Privacy Policy for additional information. The Arbitration of Disputes section on page 11 includes a waiver of a number of rights, including the right to a jury trial. The Right to Reject Arbitration section on page 13 describes the procedure you must follow if you desire to reject the Arbitration of Disputes section. DEFINITIONS ................................................... 2 USING YOUR ACCOUNT ......................................... 2 Your Acceptance of this Agreement ............................ 2 Permitted Uses of Your Account ............................... 2 Prohibited Uses of Your Account ............................... 3 Purchases and Cash Advances in Foreign Currencies ............... 3 Cash Advances .............................................. 3 Balance Transfers ............................................ 3 Credit Authorizations ........................................ 3 Authorized Users ............................................ 3 Unauthorized Use ........................................... 3 Your Credit Lines ............................................ 4 CHANGES TO THIS AGREEMENT ................................... 4 MAKING PAYMENTS ............................................. 4 Promise to Pay .............................................. 4 Monthly Billing Statement .................................... 4 Monthly Payment Options .................................... 5 Automatic Billing Arrangements ............................... 5 How We Apply Payments ..................................... 5 Minimum Monthly Payment .................................. 5 Skip-A-Payment Offers ....................................... 5 Credit Balances .............................................. 5 FINANCE CHARGES .............................................. 6 How We Calculate Periodic Finance Charges ..................... 6 How We Calculate Your Balances .............................. 6 Variable Interest Rates ....................................... 7 Default Rate ................................................ 7 Cash Advance Transaction Fee Finance Charges .................. 8 Balance Transfer Transaction Fee Finance Charges ................ 8 Foreign Currency Transaction Fee Finance Charges ............... 8 Minimum Finance Charge ..................................... 8 Account Set-up Fee Finance Charge 8 FEES ........................................................... 8 Annual Fee ................................................. 8 Late fee ........................................... ........ 9 Returned Payment Fee ....................................... 9 Returned Discover Card Check Fee ............................. 9 Pay-By-Phone ............................................... 9 Research Fee ................................................ 9 DEFAULT AND CANCELLATION .................................... 9 Types of Default ............................................. 9 Consequences of Default ..................................... 9 Cancellation ................................................ 9 PRIVACY AND OUR COMMUNICATIONS WITH YOU ................. 10 Our Privacy Policy .......... ............................... 10 Reporting to Credit Reporting Agencies ........................ 10 -1- 1ODCM0_02BOK_TL22AGO210_01361_reader. indd 3-4 12/15/09 1:36:41 PM Our Communications with You ........................ ....... 10 Releasing information About Your Account ............. ....... 10 Electronic Notices to You ............................. ....... 10 Notices- Changes to Your Information ................. ........10 CLAIMS AND DISPUTES .................................. ........10 Merchant Disputes ................................... ........10 Claim Notices ...................................... 11 . Arbitration of Disputes ............................... Ri h ........ ........11 g t to Reject Arbitration ............................ LEGAL INTER E ........13 PR TATION OF THIS AGREEMENT ............... ........13 Severability ......................................... ........13 Compliance with Interest Rate Limitations ............... ........13 Governing Law ...................................... ........13 ASSIGNMENT OF ACCOUNT ............................... ........13 DERNITIONS "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 who are also contractually liable under this Agreement. USING YOUR ACCOUNT Your Acceptance of this Agreement The use of your Account or a Card by you or an Authorized User, or your failure to cancel your Account within 30 days after receiving a Card, means you accept this Agreement, including the Arbitration of Disputes section on page 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 merchants by presenting your Card or Account number or by using promotional checks, which we may furnish to you, in accordance with such additional terms and conditions as we may offer from time to time. • Cash Advances - to obtain cash advances from participating automated teller machines, financial institutions or other locations, the purchase of lottery tickets, racetrack wagers, vouchers redeemable for cash or for casino chips, money orders, traveler's checks, savings bonds, foreign currency and wire transfers, or by means of checks which we may furnish to you, all in accordance with such additional terms and conditions as we may offer from time to time. • Balance Transfers - to transfer balances from other creditors or to make other transactions by means of balance transfer coupons or checks, in accordance with such additional terms and conditions as we may offer from time to time. In addition, your Account may be used to guarantee reservations at participating establishments. You will be liable for guaranteed reservations that are not cancelled prior to the time specified by the establishment. Your Account may be used for personal, family, household and charitable purposes. -2- Prohibited Uses of Your Account Your Account may not be used to obtain loans to purchase, carry or trade in securities, to pay any amount you owe under this Agreement or for any transactions that are unlavfitl where you reside or where you are physically located when you use the Account to initiate the transaction ("Prohibited Transactions"). Purchases and Cash Advances in Foreign Currencies. If you make a purchase or cash advance in a foreign currency, it will be converted to U.S. dollars using either a government-mandated rate, a government-published rate or the interbank exchange rate, depending on the country and currency in which the transaction is made. The rate used will be the rate in effect on the conversion date for the transaction, which may be different than the Transaction Date as shown on your statement. We charge a Foreign Currency Transaction Fee Finance Charge for each purchase made in a foreign currency as described in the Foreign Currency Transaction Fee Finance Charges section on page 8. Cash Advances. We may periodically offer you promotional rates on cash advances for the time period specified in the offer, subject to the Default Rate section. The offer may contain a Cash Advance Transaction Fee Finance Charge for each cash advance. Balance Transfers. We may periodically offer you the opportunity to make balance transfers from other creditors or to make other transactions to your Account by means of balance transfer coupons or checks. Each offer will contain a promotional rate, which will be the Annual Percentage Rate that will apply to transferred balances for the time period specified in the offer, subject to the Default Rate section and may contain a Balance Transfer Transaction Fee Finance Charge for each balance transfer made during the term of the offer, as disclosed in the offer and as set forth in the Pricing Schedule, if applicable. Balance transfers subject to the promotional rate are referred to as promotional rate balance transfers; balance transfers for which the promotional rate has expired are referred to as purchase rate balance transfers. Each offer will contain an expiration date. If you attempt to transfer balances by means of a check after the expiration date, we will treat the transaction as a cash advance. We will not make balance transfers attempted by means of a coupon after the expiration date. Credit Authorizations. Certain transactions will require our authorization prior to completion. In some cases, you may be asked to provide identification. We have the right not to authorize a transaction for security or other reasons. Also, if our authorization system is not working, we may not be able to authorize a transaction. We will not be liable to you if any of these events happen. Authorized Users. If you want to cancel the authority of a current Authorized User to use your Account or a Card, you must notify us and destroy any Card in that person's possession. You can notify us by telephoning 1-800-DISCOVER (1-800.347-2683), or by writing Discover, PO Box 30943, Sak Lake City, UT 84130-0943. None of your rights under this Agreement (other than to pay amounts owed) may be exercised by any person not a party to this Agreement acting pursuant to a power of attorney, without our separate written agreement (which we are not obligated to give). Unauthorized Use. Prior to its use, each Card must be signed by the person to whom it is issued. If a Card is last or stolen, or if you think that someone is using your Account or a Card without your permission, notify us immediately. You can notify us by telephoning 11-80DISCOVER (1-800.347-2683), or by writing Discover, PO Box 30943, Salt Lake City, UT 84130.0943. You agree to -3- 1ODCMO_0280K_TL22AGO210_01361-reader.indd 5-6 12/15109 1:36:41 PM assist us in determining the facts relating to any theft or possible unauthorized use of your Account or a Card and to comply with such procedures as we may require in connection with our investigation. Your Credit Lines. We will advise you of your Account credit line. We may impose a lower line that will apply to cash advances, referred to as the cash advance credit line. We may also impose a lower line that will apply to balance transfers, referred to as the balance transfer credit line. You agree not to allow your unpaid balance, including Finance Charges and fees, to exceed your Account credit line. If you exceed your Account credit line, we may request immediate payment of the amount by which you exceed your Account credit line. We may increase or decrease your Account credit line, your cash advance credit line or your balance transfer credit line without notice. The credit available for your use may, from time to time, be less than your Account credit line. For purposes of determining your available credit, we reserve the right to postpone for up to 15 business days reducing your unpaid balances by the amount of any payment that we receive. Your available credit will not be increased by the amount of any credit balance. CHANGES TO THIS AGREEMENT From time to time, we may, to the extent permitted by law, change any tens of this Agreement, including, but not limited to, any finance charge rate, fee ormethod of computing any balance upon which the finance charge rate is assessed, or add or delete any term to this Agreement We will give you notice of the change in the time and manner required by law, which includes 45-days advance written notice in some circumstances. In addition, to the extent required by law, we will offer you the opportunity to reject a change. For example, law requires, with certain exceptions, that we offer you the opportunity to reject an increase in a late fee or the elimination of a grace period prior to the effective date of the change. If you reject a change in accordance with the instructions in the notice provided, we will dose your Account and you will no longer be able to use it for further transactions, You can then pay the remaining balance under the unchanged term. We may also change any term of any product, service or benefit offered in connection with your Account We will notify you as required by law or by the terms of the product, service or benefit MAKING PAYMENTS Promise to Pays You agree to pay us in U.S. dollars for all purchases, cash advances and balance transfers including applicable Finance Charges and other charges or fees, incurred by you or anyone you authorize or permit to use your Account or a Card, even if you do not notify us that others are using your Account or a Card. If you pay us in other than U.S. dollars, we may refuse to accept the payment or charge your Account our cost to convert your payment to U.S. dollars. All checks must be drawn on funds on deposit in the U.S. You may not use a cash advance check, balance transfer check or coupon, or any other promotional check drawn on any Discover Bank credit card account to make payments on your Account. If your Account is a joint Account, each of you agrees to be liable individually and jointly for the entire amount owed on your Account. We can accept late payments or ppartial 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_02BOK_TL22AG0210_01361_reader.indd 7.8 we waive our right to do so as permitted by law. The billing statement will show all purchases, cash advances, balance transfers, Finance Charges and other charges or fees and all payments or other credits posted to your Account during the billing period. It will show your New Balance, Payment Due Date and Minimum Payment Due as of the end of the billing period. If your prior month's payment is returned unpaid, your required Minimum Payment Due may be higher than shown on your billing statement. Seethe Minimum Monthly Payment section on page 5. Monthly Payment Options. You may at any time pay the entire New Balance shown on your billing statement, but each month you must pay at least the Minimum Payment Due as described in the Minimum Monthly Payment section. All payments must be made in accordance with the terms stated on your monthly billing statement, as well as the payment cut-off time stated in this section, and we will credit your Account in accordance with those terms and this section. Payments received in proper form at our processing facility by 5PM local time on any day will be credited as of that day. Payments received in proper form at our processing facility after 5PM local time will be credited as of the next day. Automatic Billing Arrangements. If your Account number and/or Card expiration date changes and our records indicate you have automatic billing established with a merchant, we will attempt to provide your new Account information to that merchant. To ensure uninterrupted billing, we recommend that you verifythe merchant has your new Account information. You must contact the merchant directly if you do not wish to continue the automatic billing arrangement. How We Apply Payments. 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 (as referenced in the Finance Charges section), generally from highest to lowest, beginning with the balance subject to the highest Annual Percentage Rate. Otherwise, we will apply payments and credits at our discretion, including in a manner most favorable or convenient for us. In all cases, we will apply payments and credits in accordance with applicable law. Minimum Monthly Payment, The Minimum Payment Due each billing period will equal: (1) the greater of • 540; • 2% of the New Balance; or • current Periodic Finance Charges plus Late Fees plus $20; (ii) plus any past due amount. We may also include some or all the amount by which you exceed your Account credit line. When we calculate the Minimum Payment Due, we may 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 applicable fees will accrue on your Account in accordance with this Agreement and you must pay the Minimum Payment Due for the following billing periods. Credit Balances. We will refund any credit balance within seven business days from receipt of your written request. If you do not request a refund, -5- 12/16/09 1:36:42 PM we will automatically refund credit balances greater than $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 which case we begin to impose Periodic Finance Charges on that transaction from the first day of the billing period in which it is posted to your Account. We continue to impose Periodic Finance Charges until the date you pay your entire New Balance shown on your billing statement by making payments or receiving credits. However, if you paid the New Balance on your previous billing statement by the Payment Due Date shown on that billing statement, we will not impose Periodic Finance Charges on new purchases, that is, purchases first appearing on the current billing statement, or any portion of a new purchase, paid by the Payment Due Date on your current billing statement. We call this the "grace period." There is no grace period on balance transfers or cash advances. As more fully described in the section titled "How We Apply Payments," we generally apps payments to your Account based on the Annual Percentage Rate applicable to the balance of each transaction category. This means that if you do not pay the New Balance on the current billing statement by the Payment Due Date shown on that billing statement, then, depending 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 Periodic Finance Charges for each day of the billing period for each transaction category. We use the following equation to compute Periodic Finance Charges for each transaction category: (Average Daily Balance) times (days in billing period) times (Daily Periodic Rate). You may referto the Finance Charge Summary on yourbilling statement for these amounts. Then we add up the Periodic Finance Charges for each transaction category to get the total Periodic Finance Charges for your Account. The Average Daily Balance is shown as zero if, because of the grace period, no Periodic Finance Charges apply to the balance in a transaction category. The Daily Periodic Rate is 136Sth of the corresponding Annual Percentage Rate. How We Calculate Your Balances. We use the Average Daily Balance (including new transactions) method of calculating the balance upon which we impose Periodic Finance Charges. We compute the Average Daily Balance for each transaction category by adding up all the daily balances in a billing period for a transaction category and dividing the total by the number of days in the billing period. We compute the daily balance for each transaction category on each day by first adding the following to the previous day's daily balance: transactions with a Transaction Date of that day as shown on your billing statement, unless the transaction is posted to your Account afterthe close of the billing period in which it occurs, in which case the transaction 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 accrued on the previous day's daily balance; and by then subtracting any credits and payments that are applied against the balance of the transaction category on that day. In calculating the daily balance for the first day of the billing period, we consider the "previous day's daily balance" to have been your balance for each transaction category on the last day of your previous billing period. All fees charged to your Account are added to the standard purchase transaction category with the exception of Cash Advance Transaction Fee Finance Charges which are added to the applicable cash advance transaction category and Balance Transfer Transaction Fee Finance Charges which are added to the applicable balance transfer transaction category. Variable Interest Rates. One or more Daily Periodic Rates and corresponding Annual Percentage Rates that apply to a transaction category may be variable rates as set forth in your Pricing Schedule or in any special offers you receive from us. Variable Annual Percentage Rates are determined by adding a specified number of percentage points to the Prime Rate. This is shown on the Pricing Schedule as "Prime + (percentage points)." For urposes of this Agreement, the Prime Rate is the highest rate of interest fisted as the "prime rate" in the Money Rates section of The Wall Street Journal on the last business day of the month. The Prime Rate is merely a pricing index and does not represent the lowest or best interest rate available to a borrower at any bank at any given time. If you have a variable rate, your Annual Percentage Rate will increase or decrease when the Prime Rate changes. This change will be effective beginning with the first day of the billing period that begins during the same month as the change in the Prime Rate. An increase in the Annual Percentage Rate may increase your Minimum Payment Due. Default 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 transactions; and (ii) increase your Annual Percentage Rates for new transactions to variable Default Rates Each new variable Default Rate for a new transaction is determined byy adding up to 5 additional percentage points to the otherwise applicable Annual Percentage Rate and will vary based on any changes in the Prime Rate. (For example, if the promotional purchase rate was 2.99% and the rate for other purchases was 15.99% and you paid late once, the rate for all new purchases could increase up to 20.99% variable and vary thereafter with the Prime Rate.) When we first determine the variable Default Rates, we use the Prime Rate effective for the billing period in which you pa late. The variable Default Rates are determined in accordance with the Variable Interest Rates section. We will base your Default Rate on your creditworthiness and other factors such as your current Annual Percentage Rates and your Account history. If we increase any of your Annual Percentage Rates to a Default Rate, we will send you a notice, in accordance with applicable law, advising of (i) the date the new Default Rate will apply (the 'Default Rate Effective Date'), (ii) the type of new transactions to which it will be applied (note: the new Default Rate will not apply to any other transactions) and, (iii) your right to reject the new Default Rate. New transactions are those transactions which either (i) 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 applicable law, were posted to your Account after the current Default Rate Effective Date. Your Account will not be subject to a Default Rate for the first twelve billing periods after your Account is first opened. -7- 10DCM0_02BOK_TL22AG0210_01351_reader.indd 9.10 12/15/09 1:36:42 PM If your Annual Percentage Rate for purchases, balance transfers or cash advances was increased to a Default Rate, we will, to the extent required by applicable law, periodically review your Account to determine if any of your Annual Percentage Rates should be reduced. Any reduced Annual Percentage Rates on new and existing 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 Transaction Fee Finance Charges. Unless otherwise specified in a cash advance offer, we will charge you a Cash Advance Transaction Fee FINANCE CHARGE of 5% of the amount of each new cash advance with a minimum Cash Advance Transaction Fee FINANCE CHARGE of $10 and no maximum. The imposition of Cash Advance Transaction Fee Finance Charges may result in an Annual Percentage Rate for cash advances that is higher than the nominal Annual Percentage Rate. All forms of cash advances, including the use of Discover Card checks, regardless of the purpose for which used, are subject to Cash Advance Transaction Fee Finance Charges. To obtain the total Finance Charge on cash advances for each billing period, we add any Cash Advance Transaction Fee Finance Charges for the billing period charged under this section to any Periodic Finance Charges calculated under the Periodic Finance Charges section for each cash advance transaction category and add up these amounts. Balance Transfer Transaction Fee Finance Charges. Unless otherwise specified in a balance transfer offer, we will charge you a Balance Transfer Transaction Fee FINANCE CHARGE of 5% of the amount of each new balance transfer with a minimum Balance Transfer Transaction Fee FINANCE CHARGE of $10 and no maximum. The imposition of Balance Transfer Transaction Fee Finance Charges may result in an Annual Percentage Rate for balance transfers that is higher than the nominal Annual Percentage Rate. To obtain the total Finance Charge on balance transfers for each billing period, we add any Balance Transfer Transaction Fee Finance Charges for the billing period charged under this section to any Periodic Finance Charges calculated under the Periodic Finance Charges section for each balance transfer transaction category and add up these amounts. Foreign Currency Transaction Fee Finance Charges. We will charge you a Foreign Currency Transaction Fee FINANCE CHARGE of 2% of the U.S. dollar amount of each purchase made in a foreign currency. The imposition of Foreign Currency Transaction Fee Finance Charges may result in an Annual Percentage Rate for purchases that is higher than the nominal Annual Percentage Rate. To obtain the total Finance Charge on purchases for each billing period, we add any Foreign Currency Transaction Fee Finance Charges for the billingg period charged under this section to any Periodic Finance Charges calalated 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 $.50 for any billing period in which Periodic Finance Charges of less than $30 would otherwise be imposed. Account Set-up Fee Finance Charge. If your Pricing. Schedule accompanying your Card includes an Account Set-up Fee, we will charge you a one-time Account Set-up Fee FINANCE CHARGE in 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 at the beginning of each anniversary year your Account is open. The Annual Fee is not -8- 10DCM0_02BOK_TL22AGO210_01361_reader.indd 11-12 refundable, except as provided by law. Late Fee. We will charge you a Late Fee if you have failed, as of the Payment Due Date, to make the Minimum Payment Due that was required to be paid for that billing period. The amount of the Late Fee is based on the sum of all outstanding purchases, cash advances, balance transfers, other charges, other fees and Finance Charges at the end of the billing period for which we did not receive timely payment If the sum is $250 or less, the fee is $19. If it is greater than $250, the fee is $39. Returned Payment Fee. We will charge you a Returned Payment Fee of $35 each time you pay us with a check or other instrument that is returned unpaid. This fee will also apply if a debit transaction to a deposit account from which you have authorized us in writing, electronically or orally to periodically deduct all or a part of an amount you owe us under this Agreement is returned unpaid. We will charge you this fee the first time any payment is returned unpaid, even if it is paid upon resubmission. Returned Discover Card Check Fee. We will charge you a Returned Discover Card Check Fee of $35 each time we decline to honor a Discover Card cash advance check, balance transfer check, promotional purchase check, or other promotional check. Pay-By-Phone. 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 a Pay-By-Phone Fee. Research Fee. We may charge you a Research Fee of $5 for each copy of a billing statement or sales slip that you request. However, we will not charge a fee if you request copies in connection with a billing error. DEFAULT AND CANCELLATION types of Default You are in default if you become insolvent; if you file a bankruptcy petition or have one filed against you; if we have a reasonable belief that you are unable or unwilling to repay your obligations to us; if you are declared incompetent by a court or if a court appoints a guardian for you or a 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 If you are in default, we may declare the entire balance of your Account immediately due and payable without notice. If we refer the collection of your Account to an attorney or employ an attorney to represent us with regard to recovery of money that you owe us, we may charge you reasonable attorneys' fees and court or other collection costs as permitted by law and as actually incurred by us, including fees and costs in connection with any appeal. We may delay enforcing or not enforce any of our rights under this Agreement without losing or waiving any of them. Cancellation. You may cancel your Account by notifying us in writing or by telephone and returning or destroying every Card and unused check that we have provided you. You can notify us by telephoning 14100 DISCOVER (1-800-347-2683), or by writing Discover, A Box 30943, Salt Lake City, UT 84130-0943. Of course, you will still be responsible to pay any amount you owe us according to the terms of this Agreement. If your Account is a Joint Account, either Cardmember may cancel the Account, but you will both remain responsible to pay any amount owed to us according to the terms of this Agreement. We may cancel or suspend your Account at any time without notice. We may choose not to renew your Account (beyond the expiration date shown on the face of a Card) without notice. You must return any Card or unused checks to us upon request. -9- 12/15/09 1:36:42 PM PRIVACY AND OUR COMMUNICATIONS WITH YOU Our Privacy Policy. We may from time to time review your credit, employment and income records. We respect the privacy of information about you and your Account. Our Privacy Policy includes a summary of the personal information we collect, when it may be shared with others, how we safeguard the confidentiality and security of information and the steps you may take to limit our sharing of such information with others. Please read it carefully as it is part of your Cardmember Agreement. Reporting to Credit Reporting Agencies. As indicated in our Privacy Policy, we may report to credit reporting agencies and other creditors the status and payment history of yourAccount, including negative credit information. Late payments, missed payments or other defaults on your Account may be reflected in your credit report. We normally report to such credit reporting agencies each month. If you believe that our report of your Account status is inaccurate or incomplete, please write us at the following address: Discover, PO Box 15316, Wilmington, DE 19850.5316. Please include your name, address, home telephone number and Account number. Our Communications with You. You agree that our personnel may listen to or record telephone calls between you and our representatives without additional notice to you, including but not limited to calls we make to collect debts. We may use any medium permitted by law, including but not limited to mail, live telephone calls, automated telephone equipment, prerecorded telephone calls, e-mail and calls to your cell phone to contact you about your Account or to offer you products or services that may be of value to you. If you prefer not to be contacted in one or more of these ways, you must either telephone us at 14800-DISCOVER (1-800.347-2683) or write to us at Discover, PO Box 30961, Sah Lake City, UT 30961-0961. Releasing Information About Your Account We provide various methods by which you can obtain information about your Account. We will only release such information to you, any Authorized User that our records indicate is an authorized buyer on your Account, and any other person with your prior permission, in addition to as provided in our Privacy Policy 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 authorization 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 electronically rather than through the mail, including monthly billing statements and change of terms notices. The terms and conditions for receiving these electronic communications will be described in the offer. Notices - Changes to Your Information, If you change your e-mail address, mailing address or telephone number you must notify us of your new address or telephone number within 15 days. You can notify us by telephoning 1-800-DISCOVER (1-800-347-2683) or by writing Discover, PO Box 30943, Sah Lake City, UT 84130-0943. If your Account is a joint Account, any notice we mail to an address you have provided for the Account will serve as notice to both Cardmembers. CLAIMS AND DISPUTES Merchant Disputes. We are not responsible for the refusal of anyone to accept or honor a Card or to accept checks that we have provided you. If a merchant fails to provide your purchase to your satisfaction and you -10- 1ODCM0_02BOK_TL22AGO210_01361_reader.1ndd 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 and/or any third party for the credited amount. Upon our request, you agree to provide us with written evidence of such assignment. Claim Notices. In the event that you or we have a claim that arises from or relates to your Account, any prior account you had with us, your application, the relationships which result from your Account or the enforceability of the Agreement or any prior agreement, before initiating, joining or participating in any judicial or arbitration proceeding, as either an individual litigant or mere er of a class ("Proceeding"), the complaining Notice°'), at least 15 days before ( initiating any Proceeding, explannlg in a? reasonable detail the nature of the claim and any supporting facts; and (2) a reasonable good faith opportunity to resolve the claim without the necessity of a Proceeding. This includes any claims involving our parent corporation, subsidiaries, affiliates (including, without limitation, DFS Services LLC), predecessors, successors, assigns, as well as the officers, directors and employees of each of these entities. Any Claim Notice shall be sent to us at Discover, PO Box 3024, New Albany, OH 43054 (or such other address as we shall subsequently provide to you) (the "Claim Notice Address") or to you at your address appearing in our records or, if you are represented by counsel, to your attorney at your attorney's office. Arbitration of Disputes. Agreement to arbitrate. In the event of any past, present or future claim or dispute (whether based upon contract, tort, statute, common law or equity) between you and us arising from or relating to your Account, any prior account you have had with us, your application, the relationships which result from your Account or the enforceability or scope of this arbitration provision, of the Agreement or of any prior agreement, you or we may elect to resolve the claim or dispute by binding arbitration. IF EITHER YOU OR WE ELECT ARBITRATION, NEITHER YOU NOR WE SHALL HAVE THE RIGHT TO LITIGATE THAT CLAIM IN COURT OR TO HAVE A JURY TRIAL ON THAT CLAIM. PRE-HEARING DISCOVERY RIGHTS AND POST-HEARING APPEAL RIGHTS WILL BE LIMITED. NEITHER YOU NOR WE SHALL BE ENTITLED TO JOIN OR CONSOLIDATE CLAIMS IN ARBITRATION BY OR AGAINST OTHER CARDMEMBERS WITH RESPECT TO OTHER ACCOUNTS, OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR MEMBER OF A CLASS OR IN A PRIVATE ATTORNEY GENERAL CAPACITY ("Class Action Waiver"). Notwithstanding anything else to the contrary in this arbitration provision, only a court, and not an arbitrator, shall determine the validity effect of the Class Action Waiver. Even if all parties have opted to litigate a claim in court, you or we may elect arbitration with respect to any claim made by a new parry or any new claims later asserted in that lawsuit and nothing undertaken therein shall constitute a waiver of any rights under this arbitration provision. We will not invoke our right to arbitrate an individual claim you bring in small claims court or your state's equivalent court if any, unless such action is transferred, removed or appealed to a different court. Governing Law and Rules. Your Account involves interstate commerce and this provision shall be governed by the Federal Arbitration Act (FAA). The arbitration shall be conducted, at the option of whoever files the arbitration claim, by either the American Arbitration Association (AAA) or 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, _11- 12/15/09 1:36:42 PM www.adr.org (phone 1-800-778-7879) or JAMS at 620 Eighth Ave., Floor 34, New York, NY 10018, www.jamsadr.com (phone 1.800.352-5267). No other arbitration forum will be permitted, except as agreed to pursuant to either the Changes to this Agreement section or a writing signed 'both parties. If neither AAA nor JAMS 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 (in the case of an appeal to a panel of three arbitrators as described below). Unless consented to by all parties, no arbitration may be administered by any administrator or arbitrated b any arbitrator that has any formal or informal policy, rule or procedure that is inconsistent with or purports to override the terms of this section. If we elect to resolve a claim or dispute by binding arbitration and the arbitrator issues an award in your favor on a claim or claims with respell to which you would not otherwise be entitled to recover your arbitration filing, administrative and hearing fees, reasonable attorneys' fees and/or other arbitration costs, we will be responsible for paying or reimbursing such costs and fees if awarded by the arbitrator. Fees and Costs. At your written request, we will advance any arbitration filing, administrative and hearing fees which you would be required to pay to pursue a claim or dispute as a result of our electing to arbitrate that claim or dispute. Send requests to Discover, PO Box 30421, Salt Lake City, UT 84130-0421. The arbitrator will decide who will ultimately be responsible for paying thosefees. 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 court. In no event will you be required to pay any fees or costs incurred by us in connection with an arbitration proceeding where such a payment or reimbursement is prohibited by applicable law. Hearings and Decisions. Any arbitration hearing will take place in the federal judicial district where you reside. The arbitrator shall follow applicable substantive law to the extent consistent with the FAA and applicable statutes of limitations and shall honor claims of privilege recognized at law and shall be authorized to award all remedies permitted by the substantive laws that would apply if the action were pending in court. If requested by any party, the arbitrator shall write an opinion containing the reasons for the award. The arbitrator's decision will be final and binding except for any appeal rights under the FAA and except that if the amount in controversy exceeds $100,000, any party may appeal the award within 30 days to a three-arbitrator panel, which shall review the award de novo. Unless applicable law provides otherwise, the appealing party will pay the cost of the appeal, regardless of its outcome. However, we will consider in good faith any reasonable request for us to bear the fees charged by the arbitration administrator and the arbitrators in connection with the appeal. Judgment upon any award by the arbitrator may be enforced in any court having jurisdiction. Other Beneficiaries of this Provision. Our rights and obligations under this arbitration provision shall inure to the benefit of and be binding upon our parent corporations, subsidiaries, affiliates (including, without limitation, DFS Services LLC), predecessors, successors, assigns, as well as the officers, directors and employees of each of these entities, and will also inure to the benefit of any third party named as a co-defendant with us or with any of the foregoing in a daim which is subject to this arbitration provision. Your rights and obligations under this arbitration provision shall inure to the -12- 10DOM0_02BOK_TL22AGO210_01361reader, indd 15.16 benefit of and be binding upon all persons contractually liable under this Agreement and all Authorized Users of the Account. Survival of this Provision. This arbitration provision shall survive termination of your Account as well as voluntary payment in full by you, any legal proceedings by us to collect a debt owed by you, any bankruptcy by you and any sae by us of your Account. Right to Reject Arbitration. You may reject the Arbitration of Disputes section by providing us a notice of refection within 30 days after receiving a Card, at the following address: Discover, PO Box 30938, Salt Lake City, UT 84130-0938. If you were Previously subject to arbitration with respect to any account with us, this right to reject titration will not apply to you. Your rejection notice must include your name, address, telephone number, Account number and signature and must not be sent with any other correspondence. Calling us to indicate that you reject the Arbitration of Disputes section or sending a rejection notice in a manner or format that does not comply with all applicable requirements is insufficient notice. In order to process your notice, we require that the notice be provided by you directly and not through a third party. Rejection of arbitration will not affect your other rights or responsibilities under this Agreement or your obligation to arbitrate disputes under any other account as to which you and we have agreed to arbitrate disputes. If you do not send a rejection notice, you will be obligated by the Arbitration of Disputes section with respect to this and any prior account you have had with us, even if you have previously sent a rejection notice with respect to that prior account. LEGAL INTERPRETATION OF THIS AGREEMENT Severability. If any part of this Agreement becomes unenforceable, it will not make any other part unenforceable, except that if the Class Action Waiver set forth above in the Arbitration of Disputes section is invalidated in any proceeding in which you and we are involved, then the Arbitration of Disputes section will be void with respect to that proceeding. Compliance with Interest Rate Limitations. We intend that this Agreement will comply with applicable interest rate limitations. You will not be required to pay Finance Charges or other charges at a rate that is greater than the maximum amount permitted by law. If it is ever finally determined that, but for this section, the Finance Charges or other charges under this Agreement would exceed the maximum lawful amount, the Finance Charges and other charges will be reduced to the maximum lawful amount. Any excess amount that you have already paid will be used to reduce the outstanding balance of your Account or will be refunded to you by means of a check in our discretion. Goveming Law. This Agreement and any claim or dispute arising out of this Agreement will be governed by applicable federal law and, to the extent state law applies, Delaware law. ASSIGNMENT OF ACCOUNT We may sell, assign or transfer your Account or any portion thereof without notice to you. You may not sell, assign or transfer your Account without first obtaining our prior written consent. PRIVACY POLICY We are required by federal law to provide you with a copy of our Privacy Policy each year. If you have previously notified us about your privacy preferences, as descnbed in Section 4, it is not necessary to do so again unless you decide to change your preferences. -13- 12/15/09 1:36:43 PM We Respect Your Privacy Our mission is to provide you with superior products and services, along with the peace of mind knowing that the security of your personal information is our top priority We understand your concerns about guarding information about you and your Account. We want to assure you that we have taken steps, and will continue to take steps, to safeguard that information. This Privacy Policy describes our efforts to meet these objectives. It includes a summary of the following important information: • A listing of the personal information we collect, The circumstances in which we may share information with others; • The ways we safeguard the confidentiality and security of information; and The steps you may take to limit our sharing of such information with others. See Section 4 for complete details. Please read our Privacy Policy carefully. It will help you understand how we collect and share information. 1. What Personal Information Do We Collect? To serve you better and manage our business, it is important that we collect and maintain accurate personal information about you. We obtain this information from applications and other forms you submit to us, from your dealings with us and others, from consumer reporting agencies, and from other sources, such as our Web sites. For example: • We may obtain information such as your name, address and date of birth from applications and other forms you submit to us. • We may obtain information such as Account balances, payment history, your use of your Account and the types of services you prefer from your transactions and other dealings with us and others. We may obtain information such as the balances of your loans with other lenders and your payment history with others from consumer reporting agencies. We may obtain information such as your Internet service provider, your e-mail address, your computer's operating system and Web browser, your Web site use and your product and service preferences from your visits to Web sites. 2. Is Personal Information Shared with Others? We limit the sharing of information with others. Many of the offers you receive for products and services are provided directly to you from us. For example, a retailer that accepts the Discovers Card may come to us with a special offer for Cardmembers, such as a discount certificate or product upgrade. After careful consideration of the nature of the offer and the company, we will create a list of Cardmembers who may be interested in the offer based on certain characteristics. We will send the offer directly to those Cardmembers on behalf of the retailer by for example, including an insert in their monthly billing statement or mailing the offer ourselves. We control the information used to make the offer, we do not share the list or any information about our Cardmembers with the retailer. However, please understand that if you do receive this type of offer from us and choose to take advantage of it, the retailer may then learn information about you because only Cardmembers with certain characteristics received the offer. There are, however, circumstances in which we may share the information we collect about you, as described in Section 1, with other companies in order to provide you with access to products and services and to service your Account effectively, as detailed below. We require these companies to adhere to our privacy standards and to use this information only for the -14- 1 ODCM0_02BOK_TL22AGO210_01361_reader.indd 17-18 limited purpose for which it was shared. We do not allow them to disclose it to others without our prior approval, a. Sharing Personal information with Our Corporate Family Our corporate famil offers a variety of products and services that can help you manage your finances. In order to provide you with access to these products and services, we may share the information we collect about you, as described in Section 1, with other members of our corporate family. These companies include financial service providers that offer credit protection, card servicing and payment processing services. b. Sharing Personal Information with Non-Affiliated Parties for Marketing Purposes We may share the information we collect about you, as described in Section 1, with non-affiliated third parties, including those that accept the Discover Card, in order to provide you with access to products and services offered directly by these companies that may be of value to you. These companies include financial service providers, such as insurance companies, and non- financial companies, such as retailers. c. Sharing Personal Information with Others We may share the information we collect about you, as described in Section 1, with companies that perform support or marketing services on our behalf, such as mailing, market research and data processing; other financial institutions with which we have joint marketing agreements; or companies that are our partners for co-brand credit card programs or reward programs. We may also share such information as permitted by law. 3. How Do We Protect the Confidentiality, Security and Integrity of Information about You? We maintain physical, electronic and procedural safeguards to protect the information we collect about you. Access to such information is restricted to individuals who need it in order to service your Account or provide products and services to you, and who are trained in the proper handling of such information. Employees who violate these confidentiality requirements are subject to our disciplinary process. Where third parties provide support services, we require them to conform to our privacy standards. It is important that the information we maintain about you is accurate and complete. If you see information in your monthly billing statements or elsewhere which suggests that our information is incomplete or inaccurate, please write to us at Discover, PO Box 30943, Sah Lake City, UT 94130-0943 so that we can update this information. 4. How Can You Limit Sharing of Information About You? We respect your privacy and offer you choices as to whether we may share information about you with others. You have the option to tell us not to share the information we collect about you, as described in Section 1, with non- affiliated third parties. You also have the option to tell us not to share the information we collect about you, as described in Section 1, with companies in our corporate family. If you indicate a preference for either of these opti ons, please understand that you may not receive offers for products and services provided by other companies that could help you lower your costs, maximize your financial resources, or manage your finances. To indicate your preferences, please cal us at 1-900.225-5202 or write to Discover, PO Box 30961, 5aR Lake City, UT 841300961. If you have previously notified us about your privacy preferences, it is not necessary to do so again unless you decide to change your preferences. Your written request should include your name, address, telephone number and Account number(s) and should not be sent with any other correspondence. In order -15 12115/09 1:36:43 PM to process your request, we require that the request be provided by you directly and not through a third party. You will need to provide us with your preferences for each credit card account you have with us. You may notify us about your preferences at any time. Your request will remain in effect until you notify us otherwise. We will honor your request and not share this information except as permitted by law. For example, federal law permits us to share information about you with consumer reporting agencies, service providers and financial institutions with which we have joint marketing agreements. If you are a new Cardmember, we will not share any information about you, except as permitted by law, for thirty days after we provide this Policy to you in order to give you an oppportunity to inform us about your preferences. If you are an existing Cardmember, please understand that you may continue to receive marketing offers directly from other companies that were already in production prior to the processing of your request. This Privacy Polity is provided to the primary Cardmember listed on the Account. However, any joint Cardmember has the right to notify us about preferences and we will treat that request as applying to the entire Account. We do not share information about former customers, except as permitted by law. This notification supersedes all previously issued Privacy Policies. We reserve the right to amend this Privacy Policy from time to time and we will notify you if we do so. This Privacy Policy is provided to you by Discover Bank and its subsidiaries, which currently include GTC Insurance Agency, Inc. and Discover Products Inc. Unless otherwise specified, it applies to the family of Discover Cards for consumers and the products and services offered in connection With those Cards, including the Wallet Protection card registration service (with the exception of any information registered in connection with the service, which will not be shared). it is part of your Cardmember Agreement and provides a further explanation of how we collect and share information. You may have other rights under state laws that apply to this information. Please note that you will also receive privacy notices for other credit card accounts you have with us, as well as other financial products and services provided to you by us and our affiliates. You will need to indicate your preferences for each of these separately as disclosed in the notice. Vermont Residents - Your state law requires financial institutions to obtain your consent Prior to sharing information about you with others. Except as permitted bylaw, we will not share information we collect about you with non-affiliated third parties or companies in our corporate family unless you call us at 1 BOO DISCOVER (1-800-347-2683) and authorize us to do so. California Residents-Your state law requires financial institutions to obtain your consent prior to sharing information about you with non-affiliated third parties. Except as permitted by law, we will not share information we collect about you with non-affiliated third parties while you are a resident of California. Your Billing Rights KEEP THIS NOTICE FOR FUTURE USE This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act. 1. Notify Us in Case of Errors or Questions About Your Bill If you think your bill is wrong or if you need more information about a transaction on your bill, write us on a separate sheet of paper at the address listed on your bill for Notice of Billing Errors. Write to us as soon as possible. We must hear from you no later than 60 days after we sent you the first bill -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 error and explain, if you can, why you believe there is an error. If you need more information, describe the item you are not sure about. If you have authorized us to pay your credit card bill automatically from your savings or checking account, you can stop the payment on any amount you think is wrong. To stop the payment, your letter must reach us three business days before the automatic payment is scheduled to occur. 2 Your Rights and Our Responsibilities After LNe Receive Your Written Notice We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must either correct the error or explain why we believe the bill was correct. After we receive your letter, we cannot try to collect any amount you question or report you as delinquent. We can continue to bill you for the amount you question, including finance charges and we can apply any unpaid amount against your Account credit limit. You do not have to pay any questioned amount while we are investigating, but you are still obligated to pay the parts of your bill that are not in question. If we find that we made a mistake on your bill, you will.not have to pay any finance charges related to any questioned amount. If we didn't make a mistake, you may have to paythe finance charges, and you will have to make up any missed payments on the questioned amount In either case, we will send you a statement of the amount you owe and the date that it is due. If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does not satisfy you and you write us within ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill. And, we must tell you the name of anyone we reported you to. We must tell anyone we report you to that the matter has been settled between us when it finally is. If we don't follow these rules, we can't collect the first $50 of the questioned amount, even if your bill was correct. 3. Spedal Rule for Credit Card Purchases If you have a problem with the quality of goods or services that you purchased with a credit card, and you tried in good faith to correct the problem with the merchant you may have the right not to pay the remaining amount due on the goods or services. There are two limitations on this right: (a) you must have made the purchase in your home state or, if not within your home state, within 100 miles of your current mailing address; and (b) the purchase price must have been more than $50. These limitations do not apply if we own or operate the merchant or if we mailed you the advertisement for the goods or services. 4. Purchases Made with Checks or Cash Advances The Special Rule for Credit Card Purchases does not apply to purchases made with a balance transfer check, cash advance or promotional purchase check. Therefore, if you have a problem with the quality of goods or services that you purchased with a balance transfer check, promotional purchase check, cash advance check or the proceeds of a cash advance, you do not have the right to withhold payment of the amount due. -17- IODCMO_02BOK_TL22AGO210_01361_reader.indd 19-20 12/15/09 1:36:43 PM DESCRIPTION OF COVERAGE SCHEDULED AIR TRAVEL ACCIDENT INSURANCE Discover@ Cardmembers are provided with $500,000 Scheduled Air Travel Accident Insurance.* You, your Spouse, Domestic Partner or eligible Dependent Children for whom a ticket was purchased on your Card (as defined below) will be automatically insured against Accidental Loss of Life arising from and occurring on a Covered Trip while you, your Spouse, Domestic Partner or eligible Dependent Children for whom a ticket was purchased on your Card are riding as a passenger in or entering, exiting or being struck by a Scheduled Aircraft or a conveyance operated by a military transport service or riding as a passenger in or entering or exiting any conveyance licensed to carry the public for a fee and while traveling directly to or from the airport immediately preceding the departure of a Scheduled Aircraft on which the Insured Person has purchased passage and immediately following the arrival of a Schedule Aircraft on which the Insured Person was a passenger. *Coverage is underwritten by Federal Insurance Company, a member insurer of the Chubb Group of Insurance Companies. Certain limitations and exclusions apply. PLAN FEATURES THE BENEFITS: The full Benefit Amount ($500,000) is payable for Accidental Loss of Life. The Loss must occur within one year of the Accident. MAXIMUM LIMIT OF INSURANCE: If more than one Insured Person suffers a Loss in the same Accident, the Company will not pay more than the maximum limit of insurance ($20,000,000) per Accident. If an Accident results in Benefit Amounts becoming payable, which when totaled, exceed the applicable limit of insurance shown above, the maximum limit of insurance will be divided proportionally among the Insured Persons, based on each applicable Benefit Amount. In the event of multiple Accidental deaths per Account arising from any one Accident, the Company's liability for all such Losses will be limited to a maximum limit of insurance equal to two times the applicable Benefit Amount for Loss of Life. Benefits will be riroportionately divided among the Insured Persons up to the maximum mit of insurance. DEFINITIONS: Acddent or Accidental means a sudden, unforeseen and unexpected event happening by chance, and includes unavoidable exposure to elements arising from a covered Hazard. Accidental Bodijy IBju ies) 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. Benefit Amount means the Loss amount at the time the entire cost of the passenger fare is charged to an Account. Card means the Discover Card. Cardmember means the holder of the Card whose name appears on the credit card. Companv means the Federal Insurance Company, Covered means travel on a Scheduled Aircraft when the entire cost of the passenger fare for such transportation, less redeemable certificates, vouchers or coupons, has been charged to the Insured Person's Account. Dependent Child or Children means those children, including adopted children and those children placed for adoption, who are primarily dependent upon the Insured Person for maintenance and support and who -18- are: (1) under the age of 19 and reside with the Insured Person; (2) beyond the age of 19, permanently mentally or physically challenged and incapable of self support; or (3) under the age of 25 and classified as full-time students at an institution of higher learning. Domestic Partner means a person who: (1) is at least 18 years of age and competent to enter into a contract; (2) is not related to the Insured Person by blood; (3) has exclusively lived with the Insured Person for at least one year prior to the date of enrollment; (4) is not legally married or separated; and (5) as of the date of enrollment, has with the Insured Person at least two of the following financial arrangements: (a) a joint mortgage or lease; (b) a joint bank account; (c) joint title to or ownership of a motor vehicle or status as a joint lessee on a motor vehicle lease; or (d) a joint credit card account with a financial institution. Neither the Insured Person nor the Domestic Partner can be married to, nor in a civil union with, anyone else. Hazard means the covered circumstances for which this insurance is provided as stated in Section III of the Declarations, Hazards, and described in the Hazards form, as described on page 1 of this Description of Coverage. Insured Person means all Cardmembers, their spouses, Domestic Partners and Dependent Children, as well as authorized users of the Account. LM means the Loss of Life. Loss of Life means death, including clinical death determined by the local governing medical authorities. P91i older means DFS Services LLC, the entity responsible for the payment of premium. Sdheduled Aircraft means an aircraft owned and/or operated by a Scheduled Airline. Scheduled Airline means an airline which is either of United States registry and certified by the United States government to carry passengers on a regularly scheduled basis or of foreign register and approved by the United States government and the appropriate foreign authority. WE means hostilities following a declaration of War by a govemment authority. If there is no declaration of War, then (1) armed, open and continuous hostilities between two countries or (2) armed, open and continuous hostilities between two factions, each in control of territory, or claiming jurisdiction over the site of the area of hostility. DISAPPEARANCE BENEFITS: If the Insured Person has not been found within one year of the disappearance, stranding, sinking, wrecking or breakdown of any Scheduled Aircraft c r conveyance in which the Insured Person was covered as an occupant, it will be assumed, subject to all other terms of the policy, that the Insured Person has suffered Loss of Life covered under this policy. EXPOSURE BENEFITS: Accident includes unavoidable exposure to elements arising from a covered Hazard. ELIGIBILITY. This insurance plan is provided to Insured Persons automatically when the entire cost of the passenger fare(s) on a Scheduled Airline is charged to the Cardmember's Account while the insurance is effective. It is not necessary for you to notify the Policyholder or the Company when Scheduled Airline tickets are purchased. EFFECTIVE DATES: Your insurance under this insurance plan is effective on the later of: 1) April 1, 2007, or 2) the date you become an eligible Cardmember. Your insurance coverage under this insurance plan will cease on the earlier of: (1) the date the insurance coverage is terminated; or (2) the date you cease to be an eligible Cardmember. -19- 10DCM0_0280K_TL22AG0210_01361_reader. indd 21.22 12/15/09 1:36:44 PM COST: This insurance plan is provided at no additional cost to eligible Insured Persons for Covered Trips. Policyholder pays the full cost of the insurance. THE BENEFICIARY. The Loss of Life benefit will be paid to the beneficiary designated by you. If no such designation has been made, that benefit will be paid to the first surviving beneficiary in the following order. a) your spouse; b) your children; c) your parents d) your brothers and sisters, e) your estate. All other indemnities will be paid to you. If you wish to change your beneficiary, you may request a beneficiary designation form by writing to the plan administrator at: The Direct Marketing Group, Inc, 13265 Bedford Avenue, Omaha, NE 68164 or at BenefliciaryrequesWTheDirectMG.com. EXCLUSIONS: This insurance plan does not cover Loss resulting from: (1) an Accident occurring while an Insured Person is in, entering, or exiting any aircraft owned, leased or operated by this Policyholder or any aircraft owned, leased or operated by an employee of the Policyholder on behalf of the Policyholder (this exclusion does not apply to aircraft chartered with pilot or crew on one time charter basis), (2) an accident while an Insured Person is in, entering, or exiting any aircraft while acting or training as a pilot or crew member (this exclusion does not apply to passengers who temporarily perform pilot or crewfunctions in a life threatening emergency); (3) emotional trauma, mental or physical illness, disease, pregnancy, childbirth or miscarriage, bacterial or viral infection, or bodily malfunctions (except bacterial infection caused by an Accident or from Accidental consumption of a substance contaminated by bacteria); (4) suicide, attempted suicide or Loss that is intentionally self-inflicted; or (5) declared or undeclared War. CLAIM NOTICE: Written daim notice must be given to the Company within 90 days after the occurrence of any Loss covered by this policy or as soon as reasonably possible. Failure to give notice within 90 days will not invalidate or reduce any otherwise valid claim if notice is given as soon as reasonably possible. CLAIM FORMS: When the Company receives notice of a claim, the Company will send you forms for giving proof of Loss to us within 15 days. If you do not receive the forms, you should send the Company a written description of the Loss. CLAIM PROOF OF LOSS: Complete proof of Loss must be given to Company within 90 days after the date of Loss, or as soon as reasonably possible. Failure to give complete proof of Loss within these time frames will not invalidate any otherwise valid claim if notice is given as soon as reasonably possible and in no event later than one year after the deadline to submit complete proof of loss. CLAIM PAYMENT: The Company will pay you or your beneficiary the applicable Benefit Amount within 60 days after complete proof of Loss is received and if you, the Policyholder and/or the beneficiary have complied with all the terms of the policy. ARBITRATION: In the event of a dispute under this policy, either the 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 arbitrators will select a third. If they cannot agree within 15 days, either the Company or the Insured Person may request that the choice of arbitrator be submitted to the American Arbitration Association. The arbitration will be held in the state of the Insured Person's principal residence. IF YOU HAVE ANY CLAIM RELATED QUESTIONS, PLEASE CALL THE -20- CLAIMS SERVICE CENTER AT 1.800-CLAIMS-0 (1.800-252.4670). You can also go to the Company Web site (www.chubb.com), click on Report a loss, select Accident, Benefits and Life claims, select the appropriate form, print out the claim form, fill out and mail. You can file a claim by mail or fax. Mailing Address: CHUBB GROUP OF INSURANCE COMPANIES CLAIMS SERVICE CENTER 600 INDEPENDENCE PARKWAY PO BOX 4700 CHESAPEAKE, VA 23327.4700 Fax Number: 1-800.300-2538 As a handy reference guide, please read this and keep it in a safe place with your other insurance documents. This description of coverage is not a contract of insurance but is a summary of the principal provisions of the insurance while in effect. Complete policy provisions are contained in the Master Policy, which can be obtained from the Policyholder: Policy #9906-18-06 Policy Underwritten By Plan Administrator Federal Insurance Company The Direct Marketing Group, Inc. a member insurer of the 13265 Bedford Avenue Chubb Group of Insurance Companies Omaha, NE 68164 15 Mountain View Road, PO Box 1615 Warren, NJ 07061-1651 DESCPJP110N OF COVERAGE SECONDARY RENTAL CAR COLLISION COVERAGE Discovers Cardmembers can benefit from the security and safety offered through Excess Collision Damage Waiver. If you rent a vehicle for 31 consecutive days or less (or 45 clays under certain circumstances described below) with your Card (as defined below), you may be eligible for benefits under this coverage. Excess Collision Damage Waiver is an insurance program, underwritten by Federal' Insurance Company Policy #9906-17-63 (the "Policy"). DEFINITIONS: Account means a Card account. Actual Cash Value means the cost to repair or replace the Rented Automobile at the time of loss, less depreciation. Sardmembe means the holder of the Card whose name appears on the credit card. C ,ad means the Discover Card. Collision Damage means the direct and accidental damage to a Rented Automobile caused by upset or collision with another object. Collision Damage does not include loss caused by missiles, falling o4ects, fire, theft or larceny, explosion, earthquake, windstorm, hail, water, flood, malicious mischief or vandalism, riot or civil commotion. Company means the Federal Insurance Company. Insured means Cardmembers and authorized users of the Account. Poll older means DFS Services LLC, the entity responsible for the payment of premium. Rental Agency means a commercial automobile rental company licensed under the laws of the applicable jurisdiction. Rented Automobile means a four-wheeled private passenger type motor vehicle or a minivan manufactured and designed to transport a maximum of seven passengers and used excursively to carry passengers. A Rented -21- 10DCM0_02BOK_TL22AG0210_01361_reader.indd 23-24 12115/09 1:36:44 PM Automobile must be designed for travel on public roads and rented from Rental Agency. TO GET COVERAGE: • The Collision Damage Waiver Coverage is provided to you, as an Insured, automatically when the entire rental fee for the Rented Automobile is charged or debited to your Account. It is not necessary for you to notify the Company at the time the rental fee is charged or debited to your Account. • You must decline the Loss/Damage Waiver offered by the vehicle Rental • You Agency. rent the vehicle in your own name and sign the vehicle rental agreement/contract. • The coverage period will not exceed 31 consecutive days, or 45 consecutive days if the Insured is an employee of an organization which has provided a Card to the Insured for business use. THE KIND OF COVERAGE YOU RECEIVE: In consideration of the premium paid by the Policyholder as required, and subject to all the terms of the Policy, the Company agrees to reimburse on an Actual Cash Value basis either the Insured or the Rental Agency for repair or replacement of the Rented Automobile as a result of Collision Damage to the Rented Automobile. The Company's liability will be for a maximum reimbursement of $25,000. In no event will the Company be liable beyond the amounts actually paid by the Insured or the Rental Agency. • If you or an Insured's primary vehicle insurance or other coverage has made payments for a covered loss, Excess Collision Damage Waiver will cover your deductible and any other eligible amounts not covered by other insurance. • This coverage is not all-inclusive, which means it does not cover such things as personal in'urryy or personal liability. It does not cover you for any damages to other ve?icles 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 vehicles; trucks; recreational vehicles, campers, pickup trucks, and mini-buses; limited edition motor vehicles or high value, exotic, high performance or collector type. High value motor vehides are motor vehicles whose replacement value exceeds $50,000, and antique motor vehicles are defined as any vehicle over 25 years old, or any vehicle which has not been manufactured for 10 years or more. WHERE YOU ARE COVERED: • Coverage applies to vehicles rented anywhere in the world. • Coverage is not available where prohibited by law. WHAT IS 1Z COVERED: Coverage does not apply to loss resulting from the following: • Any dishonest, fraudulent or criminal act of the Insured. • Forgery by the Insured. • Loss due to war or confiscation by authorities. • Loss due to nuclear reaction or radioactive contamination. • The Insured being intoxicated, as defined by the laws of the jurisdiction where the loss occurred, or under the influence of any narcotic unless prescribed by a physician. • Use of the Rented Automobile to carry passengers and property for hire. -22- IODCMO_0280K_TL22AGO210_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 this plan provides insurance against damage to a rented motor vehicle, the following terms and conditions apply. (1) the period of insurance coverage will not exceed 31 consecutive days, or 45 consecutive days if the Insured is an employee of an organization which has provided the Card to the Insured for business use; and (2) the insurance provided by this plan will be excess over any other valid and collectible insurance cover- ing the Rented Automobile. However, the insurance provided under this plan may be rimary if specifically provided for under the terms of this plan and if the following criteria is met: (a) the Rented Automobile is rented for use outside the United States, its territories and possessions; (b) the Insured is an employee of an organization which has provided the Card to the Insured for business use; and (c) the Rented Automobile is rented without a driver. HOW TO FILE A CLAIM UNDER EXCESS COLLISION DAMAGE WAIVER: In the event of a claim, written or verbal notice must be provided as soon as reasonably possible. IF YOU HAVE ANY CLAIM RELATED QUESTIONS, PLEASE CALL THE CLAIMS SERVICE CENTER AT 1-B00-CLAIMS-0 (1400.252.4670). You can also go to the Company Web site (www.chubb.com), dick on Report a Loss, select Accident, Benefits and Life claims, select the appropriate form, print out the claim form, fill out and mail. You can file a claim by mail or fax. Mailing Address: CHUBB GROUP OF INSURANCE COMPANIES CLAIMS SERVICE CENTER 600 INDEPENDENCE PARKWAY PO BOX 4700 CHESAPEAKE, VA 23327-4700 Fax Number: 1-800-300-2538 CLAIM PROCEDURE: The Insured must send the Company written notice of a claim, including the Insured's name and Policy number, within 90 days after a covered loss occurs. If notice cannot be given within that time, it must be given as soon as reasonably possible. To file a sworn Proof of Loss, the Insured must send the following information to the Company or its authorized representative: • A copy of the Account statement showing the automobile rental transaction. • A copy of the automobile rental agreement • A copy of the police report. • A copy of the initial claim report submitted to the automobile Rental Agency. • A copy of the paid claim presented by the automobile Rental Agency 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 results of any settlement or denial by the applicable insurance carrier(s). If no other insurance is applicable, a notarized statement from the Insured to that effect. Reminder. Please refer to the Insurance Disclosures section. INSURANCE DISCLOSURES As a handy reference guide, please read this document and keep it in a safe place with your other insurance documents. This Summary of Coverage is not a contract of insurance but is simply an informative statement to eligible Insureds of the principal provisions of the insurance while in effect. Complete provisions pertaining to this plan of insurance are contained in the master policy on file with DFS Services LLC, herein referred to as the Policyholder. If a statement in this Summary of Coverage and any provision in the policy differ, the policy will govern. Policy Underwritten By Plan Administrator Federal Insurance Company ("Company") The Direct Marketing Group, Inc. a member of the 13265 Bedford Avenue Chubb Group of Insurance Companies Omaha, NE 68164 15 Mountain View Road, PO Box 1615 Warren, NJ 07061-1651 Master Policy Number: 9906.17-63 Effective date of benefits Effective April 1, 2007, this ride repluaces all prior disclosures, program descriptions, =s ing, and/o brochres by any party. Policyholder and Company the right to change the benefits and features of these programs at anytime. Cancellation: Policyholder can cancel these benefits at any time or choose not to renew the insurance coverage for all authorized Cardmembers. If Policyholder does cancel these benefits, you will be notified at least 60 days in advance. If the Company terminates, cancels, or chooses not to renew the coverage to Policyholder, you will be notified as soon as is practicable, Insurance benefits will still apply for any benefits you were eligible for prior to the date of such terminations, cancellation, or non-renewal, subject to the terms and conditions of coverage. Benefits to you: These benefits apply only to Cardmembers whose cards are issued by U.S. financial institutions. The United States is defined as the 50 United States, the District of Columbia, American Samoa, Puerto Rico, Guam and the U.S. Virgin Islands. No person or entity other than the Cardmember shall have any legal or equitable right, remedy, or claim for insurance proceeds and/or damages under or arising out of this coverage. These benefits do not apply if your Card rivileges have been cancelled. However, insurance benefits will still apply for any benefit you were eligible for prior to the date that your Account is suspended or cancelled subject to the terms and conditions of coverage of your Cardmember Agreement. Transfer of rights or benefits: No rights or benefits provided under these insurance benefits may be assigned without the prior written consent of the Company. Misrepresentation and Fraud: Coverage of the Insured will be void if, at any time, the Insured has concealed or misrepresented any material fact or circumstance concerning this coverage or the subject thereof or the interest of the Insured herein, or in case of any fraud or false swearing by the Insured relating thereto. Coverage for an Insured will be void if, whether before or after a loss, the Policyholder or its subscribing organization(s) has concealed or -24- misrepresented any material fact or circumstance concerning this coverage or the subject thereof or the interest of the Insured therein, or in case of any fraud or false swearing by the Policyholder or its subscribing organization(s) relating hereto. Addition of New Insureds: All eligible persons will be automatically insured under this Policy. Examination Under Oath: It is a condition of this insurance that the Insured and the Policyholder, as often as may be reasonably required by the Company, will submit, and within its power cause others to submit, to examinations under oath and will produce for examination all writings, books of account, bills, invoices and other vouchers, or certified copies thereof if originals are lost, at such reasonable time and place as may be designated by the Company or its representative, and will permit extracts and copies thereof to be made. No such examination under oath, examination of documents or any other act of the Company, its employees or representatives in connection with the investigation of any loss 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 no way inure directly or indirectly to the benefit of any insurer, person or organization or other bailee. Subrogation: It is a condition of this insurance that if the Company pays the Insured for a loss, it will require the Insured to assign and transfer any claim or right of action aggainst any individual, firm or corporation for such loss to the Company or subrogate or hold in trust all such rights to the extent of the amount paid. The Insured will agree to take action as requested by the Company to enforce such rights. Upon payment by the Company to the Insured, the Insured agrees to direct enforcement of such rights as reasonably requested by the Company and to return to the Company any recovery to the extent payment of loss has been made by the Company. Arbitration: In the event of a dispute under this policy, either the Company or the Insured may make a written demand for arbitration. In that case, the Company and the Insured will each select an arbitrator. The two arbitrators will select a third, if they cannot agree within 15 days, either the Company or the Insured may request that the choice of arbitrator be submitted to the American Arbitration Association. The arbitration will be held in the state of the Insureds principal residence. GLOBAL TRAVELER'S HOTLINE TERMS AND CONDITIONS The Global Traveler's Hotline provides Cardmembers and their families a wide range of free travel assistance benefits. It is operated by AXA Assistance USA, Inc. Visit Discovercard.com/travel to learn more. EligibilitX You must be a Cardmember whose Account is in good standing, the Cardmember's spouse or dependent child traveling with the Cardmember or an Authorized User of an Account in good standing. Third-Party Charges. Global Traveler's Hotline is not insurance, so you will be responsible for all third-party fees and expenses for services requested, such as professional or medical fees. Avallability of Services. Certain services may not be available in all areas. Call us at 1.800-DISCOVER (1-800-347.2683) for assistance or if you have questions about a specffic destination. Outside the U.S., call us collect at 1-801-902-3100. While AXA Assistance will make every reasonable effort to provide the services, neither AXA Assistance nor Discover Bank or our respective affiliates will be liable if a service is not provided or for any services that are provided by third parties. The services and these terms and conditions are subject to change without notice. -25- I 1ODCMO_0280K_TL22AGO210_01361_reader.indd 27-26 12115/09 1:36:44 PM DISCOVER New Balance Minimum Payment Due $5,387.62 $941.00 Payment Due Date December 28, 2010 02SDSN6A010014283 MICHAEL BUFFINGTON 3605 KOHLER PL APT 4 CAMP HILL PA 17011-2715 Account Number ending in 1193 Enter Amount Enclosed Below $ Please make check payable to Discover Card. Minimum ppayment due includes a past due amount of $785.00. Phone and internst pdaaymesttsnmust be made by 5:00pm ET for some y ro pa$erless and make your account information more secure with password- protected statements only you can access. =more at discovercomlpaperiess. PO BOX 71084 111111111111 1111111111111111 CHARLOTTE NC 28272-1084 Address, e-mail or telephone change? I I I I I I I I I I I I I I I I I I I I I I I 1111111111 1111111 111 11111 Il1 1 1 1 1 I11111I Go to www.Discover.com or print change in space above. Opening Date: November 3, 2010 - Closing Date: De Discover Miles Card Account Summary Account number ending in 1 193 Previous Balance $5,252.45 Payments And Credits 0.00 Purchases + 0.00 Balance Transfers + 0.00 Cash Advances + 0.00 Interest Charged + 100.17 Fees Charged + 35.00 New Balance 5,387.62 See Interest Charge Calculation section follow ing transactions for detailed APR information Credit Line $4,700 Credit Line Available $0 Cash Advance Credit Line $1,200.00 Cash Advance Credit Line Available $0.00 You may be able to avoid Interest Charges, see Additional Important Information for details. Miles by Discover" Anniversary Month November Opening Miles Balance 0 New Miles Earned + 0 Miles Balance 0 T. learn more, log in at www.Discover.eom 3 Easy Ways to Contact Us 1. Access your account securely at www.Discover.com 2. Call 1-800-DISCOVER (1-800-347-2683) Please have your Discovere card available. 3. Write to us at Discover, PO Box 30943, Salt Lake City, UT 84130 (Not a payment address) For payments, please send to address on remittance or Discover, PO Box 6103, Carol Stream, IL 60 1 97-6 1 0 3 For TDD (Telecommunications Device for the Deal) assistance, please call 1-800-347-7449. I W c Payment Information New Balance $5,387.62 Minimum Payment Due* $941.00 Payment Due Date December 28, 2010 *Includes past due amount of $785.00 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a late fee of up to $35.00 and your purchase and balance transfer APRs for new transactions may be increased up to the Penalty APR of 27.99% variable. Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example: tL;t o Y?i il'iilythrr yatf l bnd ' nik* arge3 Laa1G}tLa'§ vrn a, VF prawt?.on eg, rsxfq d any11 tikls p 51'9fr"on i? es!i meted total ,::: 4h rgorltlt,k '.f"' -1[?€rct1-.. Only the minimum 18 years $15,356 payment call 1-800-3A7-1121 Manage Your Account Online at www.Discover.com • Access free online tools like Paydown Planner to create a plan to poy down your balance, securely access statements, pay bills online and easily track all transactions Make your money worth moresm-find easy ways to earn and redeem cash rewards • NEW! Access your account securely through your mobile phone Transactions Trans. Post Date Date Fees Nov 28 Nov 28 LATE FEE $ 35.00 TOTAL FEES FOR THIS PERIOD 35.00 Interest Charged INTEREST CHARGE ON PURCHASES $ 100.17 INTEREST CHARGE ON CASH ADVANCES 0.00 INTEREST CHARGE ON BALANCE TRANSFERS 0.00 TOTAL INTEREST FOR THIS PERIOD 100.17 NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION DISC Cp DISCOVER MICHAEL BUFFINGTON Par DISCOVER Account number ending in 1193 page 2 of 2 Interest Charge Calculation Your Annual Percentage Rate (APR( is the annual interest rate on your account. Current Billing Period: 30 days TYPE OF BALANCE ANNUAL PERCENTAGE BALANCE SUBJECT TO INTEREST CHARGE RATE (APR) INTEREST RATE Purchases 22.99% $5,300.70 $100.17 Cash Advances 27.99% $0 $0 V = Variable Rate .,...,rrr.,nar enpormm Imorrnanon See your Cardmember Agreement. Your Cardmember Agreement contains all the terms of your Account. Lost or stolen cards. Report immediately] Call 1.800-347.2683. What To Do If You Think You Find A Mistake On Your Statement If you think there is an error on your statement, write to us at: Discover, PO Box 30421, Salt Lake City, UT 841 30-042 1. In your letter, give us the following information: Account information: Your name and account number. Dollar amount: The dollar amount of the suspected error. Description of Problem: If you think there is an error on your bill, describe what you believe is wrong and why you believe it is a mistake. You must contact us within 60 days after the error appeared on your statement. You must notify us of any potential errors in writing. You may call us, but if you do we are not required to investigate any potential errors and you may have to pay the amount in question. While we investigate whether or not there has been an error, the following are true: We cannot try to collect the amount in question, or report you as delinquent on that amount. The charge in question may remain on your statement, and we may continue to charge you interest on that amount. But, if we determine that we made a mistake, you will not have to pay the amount in question or any interest or other fees related to that amount. While you do not have to pay the amount in question We can apply any unpaid amount against your credit , you limitare responsible for the remainder of your balance. . Your Rights If You Are Dissatisfied With Your Credit Card Purchases If you are dissatisfied with the goods or services that you have purchased with your credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the purchase. To use this right, all of the following must be true: 1. The purchase must have been made in your home state or within 100 miles of your current mailing address, and the purchase price must have been more than $50. (Note: Neither of these are necessary if your purchase was based on an advertisement we mailed to you , or if we own the company that sold you the goods or services.) 2. You must have used your credit card for the purchase. Purchases made with cash advances from an ATM or with a check that accesses your credit card account do not qualify. 3. You must not yet have fully paid for the purchase. If all of the criteria above are met and yyou are still dissatisfied with the purchase contact us in writing at: Discover, PO Box 30945, Salt Lake Ciiy, UT 84130-0945 While we investigate, the same rules apply to the disputed amount as discussed above. After we finish our investigation, we will tell you our decision. At that point, if we think you owe an amount and you do not pay we may report you as delinquent. Payments. Send only your payment and the top portion of this statement in the envelope provided. Do not send cash. By sending your check as described above, you authorize us to use information on yyour check to make an electronic fund transfer from your account at the financial institution indicated on your check or fo process the payment as a check transaction. If payment is processed as an electronic fund transfer, the transfer will be for the amount of the check. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the some day we receive your payment, and you will not receive your check back from your financial institution. The processing of your payment may be delayed if you send cash, correspondence or other items with your payment, if you send the payment to an other address or if you use an envelope other than the one provided. Payments received in proper form at our processing facility by 5PM local time on any dayy will be credited to your Account as of that day. Payments ecved at our processing facility offer SPM local timewill iv be credited t ei o our Account as of the next day. IF you have misplaced your enve lo pe, send your payment to Discover, PO Box 6103 Coral Stream, IL 60197-6103. Please allow 7-10 days for delery. If your payment is returned unpaid, we reserve the rig(it to resubmit it as an electronic debit- Y_ u can pay your minimum payment or a greater amount over the telephone, and you can set up automatic payments. Call us at 1-800-347-2683. You will need this statement and your bank account information. You f must ensure that sufficient d uns are available in your bank account, and all iransachons must cam ply with U.S. law. You will be asked to provide the first 5 digits of your account statement ZIP code. Be entering those numbers as your electronic signature, you will be asreeing to this authorization to allow us and your bank to dduct each payment you authorize from your bank account, and to initiate debit or credit entries to your bank account, as applicable, to correct an error in the processing of such payment. You must tell us the amount of each payment or you can select an amount such as the Minimum Payment Due or the New Balance on each statement. You can cancel a payment; however we must receive notice at least three business days in advance of the scheduled pa ment. You may notify us by phone at 1-800-347-2683 or by mail at the address listed in the Previous paragrw` h. IF your payments vary in amount, we will tell you on each monthly statement when your payment will be made and much it will be. Your automatic payment amount may be less than indicated on the monthly statement based on credits or payments applied during the billing cycle. Credit Reporting. We may report information about your Account to credit bureaus. Late payments, missed payments, or other defaults on your Account may be reflected in your credit report. We normally report the status and payment history of your Account to credit reporting agencies each month. If you believe that our report is inaccurate or incomplete, please write us at the following address: Discover, PO Box 15316, Wilmington, DE 1 9850-5 3 1 6. Please indicate your name, address, home telephone number and Account number. NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION DISCOVER DISCOVER BANK 12 READS WAY NEW CASTLE, DE 19720 Plaintiff vs. MICHAEL L. BUFFINGTON 3605 KOHLER PLACE, APT. 4 CAMP HILL, PA 17011 Defendant : COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA No: 11-5409 -CIVIL TERM Civil Action - Law NOTICE TO PLEAD To: Discover Bank r,? - c/o Stock & Grimes, LLP Francis X. Grimes, Esquire 804 West Avenue ._ Jenkintown, PA 19046 c -, CIO You are hereby notified to plead to the enclosed Preliminary Objections within twenty (20) days from the date of service hereof or a default judgment may be entered against you. Date: 7--,4-/( Respectfully Submitted, ?4? Michael J. Pykosh, Esquire I. D. # 58851 2132 Market Street Camp Hill, Pennsylvania 17011 Attorney for Defendant, Michael L. Buffington Michael J. Pykosh, Esquire I D # 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 Telephone - (717) 975-9446 Fax - (717) 975-2309 mpykoshOdplglaw.com Attorney for Defendant DISCOVER BANK : COURT OF COMMON PLEAS 12 READS WAY : CUMBERLAND COUNTY, PENNSYLVANIA NEW CASTLE, DE 19720 Plaintiff vs. No: 11-5409 -CIVIL TERM MICHAEL L. BUFFINGTON 3605 KOHLER PLACE, APT. 4 CAMP HILL, PA 17011 Defendant Civil Action - Law DEFENDANT'S PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT AND NOW, comes the Defendant, Michael L. Buffington, by and through his attorneys Dethlefs-Pykosh Law Group, LLC, by Michael J. Pykosh, Esquire, who files his Preliminary Objections to the Plaintiff's Complaint, and avers as follows- 1 . Plaintiff filed its original Complaint in this matter on July 12, 2011. First Preliminary Objection- Pa. R.C.P. 1028(a)(4) Demurrer 3. Plaintiff's Complaint is based upon contract. 4. The Second Count of Plaintiff's Count is based upon a theory of quantum merit. 5. The Pennsylvania Supreme Court has ruled that the Doctrine of Unjust Enrichment is inapplicable where the relationship between the parties is founded upon a contract. Lustfield v Milne 5 Pa. D&C. 5t" 469 citing Wilson Area School District v Skepton 586 Pa 513 (2006). WHEREFORE, the Defendant respectfully requests that his Preliminary Objections be sustained, and that Count 2 of Plaintiff's Complaint be dismissed with prejudice. Second Preliminary Objection- Pa. R.C.P. 1028(a)(2) Failure to Conform to Law or Rule of Court 6. Pursuant to Pa. R.C.P. 1028(a)(2), a party may file a Preliminary Objection based upon the failure of a pleading to conform to law or rule of court or inclusion of scandalous or impertinent matter. 7. Plaintiff's Complaint is based upon a contract. 8. The Second Count of Plaintiff's Complaint is based upon a theory of quantum merit. 9. The Pennsylvania Supreme Court has ruled that the Doctrine of Unjust Enrichment is inapplicable where the relationship between the parties is founded upon a contract. Lustfield v Milne 5 Pa. D&C 5th 469 citing Wilson Area School District v Skepton 586 Pa -52 WHEREFORE, the Defendant respectfully requests that his Preliminary Objections be sustained, and that Count 2 of Plaintiff's Complaint be dismissed with prejudice. Third Preliminary Objection- Pa. R.C.P. No. 1028(a)(3) Insufficient Specificity 10. The Complaint contains only a general assertion of the amount the Plaintiff claims is owed by the Defendant. It provided no detail as to the date(s) on which the debts were incurred, the amounts incurred on each date, the dates or amounts of payments, nor dates of accrual and amounts of interest charges and other fees. 11. Pa. R.C.P. No. 1019 and Pa. R.C.P. 1028(a)(3) require that the above detail be included in a Complaint of this type. 12. Plaintiff has included one statement as attached to Plaintiffs Complaint as "Exhibit "B". 13. By not including the requisite detail of the account, the Complaint fails to conform to an express rule of Court. WHEREFORE, the Defendant respectfully requests that his Preliminary Objections be sustained, and that Plaintiff's Complaint be dismissed with prejudice. Respectfully Submitted, Date:'. )!& _ f v ichael J. y osh, Esquire I. D. # 58851 2132 Market Street Camp Hill, Pennsylvania 17011 (717)975-9446 VERIFICATION I, Michael L. Buffington, hereby verify that the statements of fact made in the foregoing documents are true and correct to the best of my personal knowledge, information and belief. I understand that any false statements therein are subject to the criminal penalties contained in 18 Pa C. S. Section 4904, relating to unsworn falsification to authorities. Date: 2 Michael L. Buffing on DISCOVER BANK 12 READS WAY NEW CASTLE, DE 19720 Plaintiff VS. : COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA No: 11-5409 -CIVIL TERM MICHAEL L. BUFFINGTON : 3605 KOHLER PLACE, APT. 4 CAMP HILL, PA 17011 : Defendant Civil Action - Law CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Defendant, Michael L. Buffington's, Preliminary Objections to Plaintiff's Complaint, was hereby served by depositing the same within the custody of the United States Postal Service, First Class, postage prepaid, addressed as follows: Discover Bank c/o Stock & Grimes, LLP Francis X. Grimes, Esquire 804 West Avenue Jenkintown, PA 19046 Respectfully Submitted, Date: 242Mic ae cosh, Esquire I. D. # 58851 2132 Market Street Camp Hill, Pennsylvania 17011 Attorney for Defendant Michael J. Pykosh, Esquire ID # 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 Telephone - (717) 975-9446 Fax - (717) 975-2309 DISCOVER BANK 12 READS WAY NEW CASTLE, DE 19720 Plaintiff VS. MICHAEL L. BUFFINGTON 3605 KOHLER PLACE, APT. 4 CAMP HILL, PA 17011 FiLEu-CIEEf THIF R[ T ACT 21 r c: Attorney for Defendant : COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No: 11-5409 -CIVIL TERM Defendant Civil Action - Law To: Discover Bank c/o Francis X. Grimes, Esquire Stock & Grimes, LLP 804 West Avenue Jenkintown, PA 19046 You are hereby notified to file a written response to the enclosed New Matter within twenty (20) days from service hereof or a judgment may be entered against you. XC. ykosh, Esquire Michael J. Pykosh, Esquire ID # 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 Telephone - (717) 975-9446 Fax - (717) 975-2309 DISCOVER BANK 12 READS WAY NEW CASTLE, DE 19720 Plaintiff vs. COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA No: 11-5409 -CIVIL TERM MICHAEL L. BUFFINGTON 3605 KOHLER PLACE, APT. 4 CAMP HILL, PA 17011 Defendant Civil Action - Law ANSWER TO PLAINTIFF'S AMENDED COMPLAINT WITH NEW MATTER AND NOW, comes the Defendant, Michael L. Buffington, by and through his attorneys, Dethlefs-Pykosh Law Group, LLC, by Michael J. Pykosh, Esquire, who responds to Plaintiffs Amended Complaint as follows: COUNTI-CONTRACT 1. Denied. After reasonable investigation, Defendant is without sufficient knowledge as to the truth or veracity of the averments set forth in Paragraph 1 of Plaintiff's Amended Complaint. 2. Denied. After reasonable investigation, Defendant is without sufficient knowledge as to the truth or veracity of the averments set forth in Paragraph 2 of Plaintiff's Amended Complaint. 3. Denied. After reasonable investigation, Defendant is without sufficient knowledge as to the truth or veracity of the averments set forth in Paragraph 3 of Plaintiff's fnr ilPf .,.7....a Amended Complaint. 4. Denied. The averments as set forth in Paragraph 4 contain conclusions of law to which no response is required. It is also further Denied, after reasonable investigation, Defendant is without sufficient knowledge as to the truth or veracity of the averments set forth in Paragraph 4 of Plaintiff's Amended Complaint. 5. Admitted. 6. Admitted. 7. Admitted in part and Denied in part. physical credit card issued by Plaintiff. It is Admitted that Defendant received the The remainder of the averments in paragraph 7 is Denied after reasonable investigation, Defendant is without sufficient knowledge as to the truth or veracity of the remainder of the averments set forth in Paragraph 7 of Plaintiffs Amended Complaint. Additionally, the remainder of the averments constitutes a conclusion of law to which no response is required. 8. Denied. The cardmember agreement is a written document and speaks for itself. It's further Denied that the cardmember agreement should not be signed. This agreement is further Denied in that the averments as set forth in Paragraph 8 contain conclusions of law to which no response is required. 9. Denied. After reasonable investigation, Defendant is without sufficient knowledge as to the truth or veracity of the averments set forth in Paragraph 9 of Plaintiffs Amended Complaint. 10. Denied. The averments as set forth in Paragraph 10 contain conclusions of law to which no response is required. 11. Denied. The averments as set forth in Paragraph I 1 contain conclusions of law to which no response is required. 12. Denied. The averments as set forth in Paragraph 12 contain conclusions of law to which no response is required. 13. Denied. The averments as set forth in Paragraph 13 contain conclusions of law to which no response is required. 14. Denied. The averments as set forth in Paragraph 14 contain conclusions of law to which no response is required. 15. Denied. The averments as set forth in Paragraph 15 contain conclusions of law to which no response is required. 16. Denied. The averments as set forth in Paragraph 16 contain conclusions of law to which no response is required. 17. Denied. After reasonable investigation, Defendant is without sufficient knowledge as to the truth or veracity of the averments set forth in Paragraph 17 of Plaintiff's Amended Complaint. WHEREFORE, the Defendant, Michael L. Buffington, respectively requests that Plaintiff's Amended Complaint be dismissed with prejudice. COUNT II - UNJUST ENRICHMENT 18. Defendant incorporates by reference, the foregoing averments 1 through 17of this Answer to Plaintiff's Amended Company with New Matter, as though the same were more fully set forth herein. 19. Denied. The averments as set forth in Paragraph 19 contain conclusions of law to which no response is required. 20. Denied. The averments as set forth in Paragraph 20 contain conclusions of law to which no response is required. WHEREFORE, the Defendant, Michael L. Buffington, respectively requests that Plaintiff's Amended Complaint be dismissed with prejudice. DEFENDANT'S NEW MATTER The Defendant, Michael L. Buffington, sets forth the following New Matter: 1. Defendant incorporates by reference, the foregoing averments 1 through 20 of this Answer to Plaintiff Amended Company with New Matter, as though the same were more fully set forth herein. 2. The claims made by Plaintiff are barred by the applicable Statute of Limitations. 3. The claims made by Plaintiff are barred by the Doctrine of Accord and Satisfaction. 4. The Plaintiffs claim based in Quantum Meruit is barred pursuant to Lustfeld v. Mine, 5 Pa. B&C 5th 469 citing Wilson Area School District v. Skepton, 586 Pa. 513 (2006) 5. Plaintiff s Amended Complaint fails to include a proper verification as required by Pa. R.C.P. 1024(c). 6. Plaintiffs actions may be barred by the Doctrine of Estoppel. 7. Plaintiffs actions may be barred by the Doctrine of Unclean Hands. 8. Plaintiff does not have standing to sue Defendant in this matter. WHEREFORE, the Defendant, Michael L. Buffington, demands judgment in his favor and against Plaintiff with costs, attorney's fees and any other relief the Court deems just. Respectfully Submitted, Dated: / D - By: Michael J. Pykosh, Esquire VERIFICATION I, Michael L. Buffington, hereby verify that the statements of fact made in the foregoing documents are true and correct to the best of my knowledge, information and belief I understand that any false statements therein are subject to the criminal penalties contained in 18 Pa C. S. Section 4904, relating to unsworn falsification to authorities. Date: ( 2b Qtt I ( tz? Michael L. Buffingto _? Michael J. Pykosh, Esquire ID # 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 Telephone - (717) 975-9446 Fax - (717) 975-2309 DISCOVER BANK 12 READS WAY NEW CASTLE, DE 19720 Plaintiff : COURT OF COMMON PLEAS vv ?..u??? : CUMBERLAND COUNTY, PENNSYLVANIA vs. No: 11-5409 -CIVIL TERM MICHAEL L. BUFFINGTON 3605 KOHLER PLACE, APT. 4 CAMP HILL, PA 17011 Defendant Civil Action - Law CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing ANSWER TO PLAINTIFF'S AMENDED COMPLAINT WITH NEW MATTER, was hereby served by depositing the same within the custody of the United States Postal Service, First Class, postage prepaid, addressed as follows: Discover Bank c/o Francis X. Grimes, Esquire Stock & Grimes, LLP 804 West Avenue Jenkintown, PA 19046 Respectfully Submitted, Dated: I v By• Mich J. Pykosh. Esquire _ r_r WTn '`!( STOCK & GRIMES, LLP ?- ? BY: FRANCIS X. GRIMES, ESQUIRE ID NO.. 62404 I 0'"T 31 ? . ? ? ' 804 West Avenue "'U'4 b E R 1 'k t?.J ; i Jenkintown, PA 19046 P E N N IS Y ? VAt;l I (215-576-1900) DISCOVER BANK COURT OF COMMON PLEAS CUMBERLAND COUNTY vs. No.: 11-5409 MICHAEL L. BUFFINGTON PLAINTIFF'S REPLY TO DEFENDANT'S NEW MATTER Plaintiff, Discover Bank, herein incorporates by reference each and every allegation contained in its Complaint as if detailed herein at length and further responds to Defendant's New Matter as follows: 1. No response required. 2. Denied. Defendant's last payment was made on or about May, 2010. 3. Denied as a conclusion of law. 4. Denied as a conclusion of law. 5. Denied as a conclusion of law. 6. Denied as a conclusion of law. 7. Denied as a conclusion of law. 8. Denied as a conclusion of law. WHEREFORE, Plaintiff demands judgment in its v and a inst Defendant Date: F CIS X. GRIMES, ESQUIRE ornev for Plaintiff DISCOVER BANK COURT OF COMMON PLEAS CUMBERLAND COUNTY VS. : No.: 11-5409 MICHAEL L. BUFFINGTON : CERTIFICATE OF SERVICE I hereby certify that I have served a true and correct copy of Plaintiff s Reply To Defendant's New Matter on the date indicated below to all parties or their attorneys of record by: X regular first class mail certified mail other DATE: I&A rl / STOCK BY: S X. GRIMES, ESQUIRE for Plaintiff STOCK & GRIMES, LLP BY: Francis X. Grimes, Esquire I.D.#62404 804 West Avenue Jenkintown, PA 19046 (215) 576-1900 DISCOVER BANK Plaintiff VS. MICHAEL L. BUFFINGTON Defendant(s) Attorney for Plaisf" ni ., W c? - COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION-LAW No. 11-5409 CIVIL PRAECIPE FOR SUGGESTION OF BANKRUPTCY TO THE PROTHONOTARY: Francis X. Grimes, Esquire, Attorney for Plaintiff herein, requests that the court notate its records that the Defendant, Michael L. Buffington, has filed a Chapter 7 Petition in Bankruptcy in the United States Bankruptcy Court for the Middle District of Pennsylvania as of No. 1:12-bk-03586-MDF on June 13, 2012 as indicated by the Notice of Bankruptcy Case Filing attached hereto in regard to the matter. The undersigned hereby requests that the court Stay this case. DATE: 6/18/12 FRAN IS X. GRIMES, ESQUIRE USBC PAM - LIVE - VERSION 4.3 https://ecf.pamb.uscourts.gov/cgi-bin/NoticeOfFiling.p1?221235 United States Bankruptcy Court Middle District of Pennsylvania Notice of Bankruptcy Case Filing A bankruptcy case concerning the debtor(s) listed below was filed under Chapter 7 of the United States Bankruptcy Code, entered on 06/13/2012 at 5:41 PM and filed on 06/13/2012. Michael Lee Buffington 3605 Kohler Place Flat #4 Camp Hill, PA 17011 SSN / ITIN: xxx-xx-1693 The case was filed by the debtor's attorney Dorothy L Mott 125 State Street Harrisburg, PA 17101 717 232-6650 The bankruptcy trustee is: Leon P. Haller (Trustee) Purcell, Krug and Haller 1719 North Front Street Harrisburg, PA 17102 717 234-4178 The case was assigned case number 1:12-bk-03586-MDF to Judge Mary D France. In most instances, the filing of the bankruptcy case automatically stays certain collection and other actions against the debtor and the debtor's property. Under certain circumstances, the stay may be limited to 30 days or not exist at all, although the debtor can request the court to extend or impose a stay. If you attempt to collect a debt or take other action in violation of the Bankruptcy Code, you may be penalized. Consult a lawyer to determine your rights in this case. To view the bankruptcy petition and other documents filed in this case, please visit the following Internet link: http://ecf.pamb.uscourts.gov/ There is an .08 fee per page or page view (charges do not apply up to the first per calendar year) and you must first register at this web site: http://pacer.psc.uscourts.gov/ Public access computer terminals are also available at the Clerk's Office's two locations, 9:00 am to 4:00 pm, M-F (closed on all federal holidays): Max Rosenn US Courthouse, 197 South Main Street, Wilkes- Barre, PA 18701 and Ronald Reagan Federal Building and Courthouse, 228 Walnut Street, Harrisburg, PA 17101. You may be a creditor of the debtor. If so, you will receive an additional notice from the court setting forth important deadlines. Terrence S. Miller Clerk, U.S. Bankruptcy 1 of 2 6/18/2012 11:37 AM la6ed 00 papsodeo lelol Z = siuawAed;o jegwnN 00'l _ jua110 a©l je}oj-qnS pepsodap 00'OZ ZIOZ/1£/9 9199-E6€E-£Zt7L-LZIV G3H3NIOINd'UNMtlVd papsodap Vo"&06, Z10Z/1/9 000E-1a6tr-ZZL0-16Z5 S b'Qf?l?I99d'i?t®t tlSb?B NVN :Iual10 MINTS Fu -ow ppoisod •4ea 'OPT junoooV 8Ow Z 1 OZ/t,/9 s#uewAed p-1e0 ; paJO 100 = al 'Z10Z/tr/9 :ate© psodso NVN dr1S lsoded USBC PAM - LIVE - VERSION 4.3 Court PACER Service Center Transaction Receipt 06/18/2012 11:37:23 1PACER Login: es0082 Client Code: Description: (Notice of Filing Search Criteria: Billable Pages: I Cost: https://ecf.pamb.uscourts.gov/cgi-bin/NoticeOfFiling.pl?221235 12-bk-03586-MDF 0.10 2 of 2 6/18/2012 11:37 AM STOCK & GRIMES, LLP By: Francis X. Grimes, Esquire I.D.#62404 804 West Avenue Jenkintown, PA 19046 (215) 576-1900 DISCOVER BANK Plaintiff VS. MICHAEL L. BUFFINGTON Defendant Attorney for Petitioner/Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW NO. 11-5409-CIVIL ORDER OF COURT AND NOW, 5UAtt, 3CJ , 2012, in consideration of the foregoing Petition, , Esquire , Esquire and , Esquire are appointed Arbitrators in the above- captioned action as prayed for. BY THE COURT: P.J. n C= rV 4C9 f -r) rn F2 c m- =? r- -a 1 -c w a n?J v /-a Ae_,s X- CJ/',w eS OO b E P C4&e .--J- ) KCSh is ? mot . T ? , m - ??p; P5 ,,? : le d/?/,? DISCOVER BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA VS. CIVIL ACTION - LAW NO. 11-5409 CIVIL MICHAEL L. BUFFINGTON, Defendant ORDER AND NOW, this /0' day of July, 2012, it appearing that the defendant has filed a Chapter 7 Bankruptcy Petition, the appointment of the Board of Arbitrators in this case is VACATED. BY THE COURT, L/ Francis Grimes, Esquire For the Plaintiff v' Michael Pykosh, Esquire For the Defendant yro?a Kevin Hess, P. J. c =M c uz r" - r? a <C) C')