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HomeMy WebLinkAbout06-6724 f"II! . . ... COMMONWEALTH OF PENNSYLVANIA COURT OF COMMON PLEAS Judicial District, County Of Cumberland NOTICE OF APPEAL FROM DISTRICT JUSTICE JUDGMENT COMMON PLEAS No. NOTICE OF APPEAL Oi\_i\77.t l"'nTTT Notice is given that the appellant has filed in the above Court of Common Pleas an appeal from the judgment rendered by the District Justice on the date and in the case referenced below. NAME OF APPELLANT MAG. DIST. NO. NAME OF D.J. Vivian Cohick Citico Trust Bank ADDRESS OF APPELLANT P.O. Box 371453 DATE OF JUDGMENT 09-3-02 CITY STATE ZIP CODE 15251 Pittsburgh PA 1-=23=06 IN THE CASE OF (Plaintiff) Samuel Howell (Defendant)' 'IS Citicorp Trust Bank SIGNATURE OF APPELLANT OR ATTORNEY OR AGENT "",1/ I/) AJ,. .:J.oo 'I If S . /&~ ~ MICHAEL D RAFALKO, ESQ This block will be signed ONLY when this notation is required under Pa. If appellant was Claimant (see Pa. R.C.P.D.J. No. 1001(6) in action R.C.P.D.J. No. 10088. This Notice of Appeal, when received by the District Justice, will operate as a before a District Justice, A COMPLAINT MUST BE FILED within twenty SUPERSEDEAS to the judgment for possession in this case. cv-0000108-06 DOCKET No. (20) days after filing the NOTICE of APPEAL. Signature of Prothonotary or Deputy PRAECIPE TO ENTER RULE TO FILE COMPLAINT AND RULE TO FILE (This section of form to be used ONL Y when appellant was DEFENDANT (see Pa.R.C.P.D.J. No. 1001(7) in action before District Justice. IF NOT USED, detach from copy of notice of appeal to be seNed upon appellee. PRAECIPE: To Prothonotary Enter rule upon Samuel Howell appellee(s), to file a complaint in this appeal Name of appellee(s) (Common Pleas No. 06-6724 CIVIL ) within twenty (20) days after seNice of rule or suffer entry of judgment of non pros. ~ ~~lIantorattomeYoragent RULE: To Samuel Howell Name of appellee(s) , appellee(s) (1) You are notified that a rule is hereby entered upon you to file a complaint in this appeal within twenty (20) days after the date of service of this rule upon you by personal service or by certified or registered mail. (2) If you do not file a complaint within this time, a JUDGMENT OF NON PROS MAY BE ENTERED AGAINST YOU. (3) The date of service of this rule if service was by mail is the date of the mailing. ,;lJ.. Date: Nov. ~ , 2006 ~ YOU MUST INCLUDE A COPY OF THE NOTICE OF JUDGMENTITRANSCRIPT FORM WITH THIS NOTICE 0 Aope 312-02 WHITE - COURT FILE TO BE FILED WITH PROTHONOTARY GREEN - COURT FILE YELLOW - APPELLANT'S COPY PINK - COPY TO BE SERVED ON APPELLEE GOLD - COPY TO BE SERVED ON DISTRICT JUSTICE ,- 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 of the notice of appeal. Check applicable boxes.) COMMONWEALTH OF PENNSYLVANIA COUNTY OF ; ss AFFIDAVIT: I hereby (swear) (affirm) that I served o a copy of the Notice of Appeal, Common Pleas , upon the District Justice designated therein on (date of service) ,20, 0 by personal service 0 by (certified) (registered) mail, sender's receipt attached hereto, and upon the appellee, (name) , on ,20 0 by personal service 0 by (certified) (registered) mail, sender's receipt attached hereto. (SWORN) (AFFIRMED) AND SUBSCRIBED BEFORE ME THIS DAY OF , 20_. Signature of affiant Signature of official before whom affidavit was made Title of officiai My commission expires on ,20_. (") ,.- ~ \.-'" f-, '" = = c;r. 7 c3 <:: N 1'.) o ." --{ :r: nl:D r- -om .:rJV !'") I ;~~ Om :-1 ~ -< ;n.. ::r.: m .. ,.- ~ "..,.__,)"""..,._>:,.:"..,..:':':"".....::.:,-,':':;;':'.,-:":'::?:;:S:'C:::::0~:'<<<<c::':':-:w,<<,:-:"-:,?"""-:'?"""_,,._:,'f,':':',~{,?:~"::'~:,Y'""":~,~~m':l:%~'w!~~',',"m,~~:$.. COMMONWEALTH OF PENNSYLVANIA COUNTY OF: CtJIIBBRLAIlP NOTICE OF JUDGMENTlTRANSCRIPT CIVIL CASE NAME and ADDRESS PLAINTIFF: fB01IBLL, SAllUBL 20 SLAD LAD BBWYXLLB, PA 17241 L Mag. Dist. No,: 09-3-02 MDJ Name: Hen. VIVID COHICK. Address: PO BOX 155 27 W BIQ SPRIBG AVB DllVILLB, PA Telephone: (717) 776-3187 17241 VS. DEFENDANT: NAME and ADDRESS fCITICOU RUST DAB, PO BOX 371453 PITTSBURaB, PA 15251 L Docket No.: CV-0000108-06 _~.... Date Filed: 8/24/06 ~ CITICOU RUST BAB PO BOX 371453 PITTSBURQH, PA 15251 THIS IS TO NOTIFY YOU THAT: Judgment: I'OR PLAIII'1'II'I' (Date of Judgment) ~ Judgment was entered for: (Name) HOWBLL, SAllUBL ~ Judgment was entered against: (Name) CITICOU RUST BAB, in the amount of $ 8,122.00 o Defendants are jointly and severally liable. o Damages will be assessed on Date & Time o This case dismissed without prejudice. 10/23/06 Amount of Judgment $ 8,000.00' Judgment Costs $ 122.00 Interest on Judgment $ .00 Attomey Fees $ .00 Total $ 8,122.00 Post Judgment Credits $ Post Judgment Costs $ ------------ ------------ Certified Judgment Total $ o Amount of Judgment Subject to Attachment/42 Pa.C.S. 98127 $ , o Portion of Judgment for physical damages arising out of residential lease $ ANY PARTY HAS THE RIGHT TO APPEAL WITHIN 30 DAYS AFTER THE ENTRY OF JUDGMENT BY FILING A NOTICE OF APPEAL WITH THE PROTHONOTARY/CLERK OF THE COURT OF COMMON PLEAS, CIVIL DIVISION. YOU MUST INCLUDE A COpy OF THIS NOTICE OF JUDGMENTITRANSCRIPT FORM WITH YOUR NOTICE OF APPEAL EXCEPT AS OTHERWISE PROVIDED IN THE RULES OF CIVIL PROCEDURE FOR MAGISTERIAL DISTRICT JUDGES, IF THE JUDGEMENT HOLDER ELECTS TO ENTER THE JUDGMENT IN THE COURT OF COMMON PLEAS, ALL FURTHER PROCESS MUST COME FROM THE COURT OF COMMON PLEAS AND NO FURTHER PROCESS MAYBE ISSUED BY THE MAGISTERIAL DISTRICT JUDGE. UNLESS THE JUDGMENT IS ENTERED IN THE COURT OF COMMON PLEAS, ANYONE INTERESTED IN THE JUDGMENT MAY FILE A REQUEST FOR ENTRY OF SATISFACTION WITH THE MAGISTERIAL DISTRICT JUDGE IF THE JUDGMENT DEBTOR PAYS IN FULL, SETILES, OR OTHERWISE COMPLIES WITH THE JUDGMENT. 10- J3--O,kDate I certify that this is a true and correct copy of t Date , Magisterial District Judge record of the proceedings containing the judgment. , Magisterial District Judge My commission expires first Monday of January, 2012 SEAL AOPC 315-06 n~T. PR~: 10/23/06 10:47:00 AN ~~~ ~~~,' ~~ _UJ ct 0, C!, ~\ \J "1J~<U~ 2;, ?:'~~~ j\ ~ ~ () f' ~ {~- ~~~~~ I \-'" ('- t' . ~......~C>-.~ 8 ~ ~J !: ~ ;t?~ u.. ~' ~ R~' o ~ r: ;~ f',~ \J ~ \ ~ ~ ~ ['..) :XJ C--, .,< ill . ';l i.,,:,,,t~,,;;. "~,,:';. :~> '~Vr:~::"'7;!,';;;~~>':'t:'I",j'V':"",~~_~ ""/i' l.;t<;;f:;..:;::~.t", ;;i,.,~~~,:.~1".,",,:"-,,- -";:,r,,:,",~~;.,'t"-,,,~.~~~,:_q~ J;':~'~-" 'f"';';;:;~~'i~\;-.:~,~-::~i~l~; ,~~~~~ ~~I,~.;-'N7J~'~;:~~;i,t~:7t?~.':~~)~'. .~'~;,; '~~~~!~..'i!ifr~~,':.\)I.t;~iJi.:'~ H; ;C,,;r,:,: '''-''~ ..... ;:;,;,~-" -;,:,,!, ",,'" lPi'r~ '.;f/i..,;" ,~~;'. .... ,., :." g s: -UOJ mrn zi~::'-'~ U),<', -< ,. r:c ..~ ~g PC: z ~ ,...., c:::;) c:::;) C7" ::z c:::> -< (.,.) c:::> o -n :r!:n ~Fn ~6 -:I "T' :r: .~ '::> - 2:0 Om ~ ~ -0 3: N N 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 of the notice of appeal. Check applicable boxes.) COMMONWEALTH OF PENNSYLVANIA COUNTY OF Gum !Ju-/~114 ; ss AFFIDAVIT: I hereby (swear) (affirm) that I served o a copy of the Notice of Appeal, Common Pleas 0[, 1172.-4, upon the District Justice designated therein on (date of service) Al,,-Itntb,r' .J' ,20 0 b , 0 by personal service ~y (certified) (registered) mail, - ~ ~,.. 14",,11.... sender's receipt attached hereto, and upon the appellee, (name) ~.I7 J.,)''''''U; ~:.~ 6:" - - - , , on JVl/t!.WJblr' caB ,20 ~ 0 by personal service if by (certified) (registered) mail, sender's receipt attached hereto. (SWORN) (AFFIRMED) AND SUBSCRIBED BEFORE ME THIS ch DAY OF , 20P...!e-. ~~ /11," t..A A d A!Ata / k" E:.s,. I /lfhy~ ~ NY' A,#Jt-//~+- Signat e ~~ 11,J.L', Tit e official My comml'~on e'pi,e. on n-, tl i , 20Pf-' COMMONWEALTH OF PENNSYLVANIA Notarial Seal . Lorraine A. Kane, NotarY P~bhC City Of Philadelphia, Philadelphia ~ WrJ eommis!liOn Expires May 28, . Member. pennsylvania Association of Notanes Signature of affiant \ .. ~ ru ru [J"' ~ [J"' c:O ::r U.S. Postal Servicew CERTIFIED MAIL"" RECEIPT . {Domestic Mail Only; No Insurance CO,vp'!!!ge", e , . ru CI CI ~ ru CI CI RetJr~'ieciePt Fee CI (Endorsemec Required) CI Restricted ellvery Fee rn (Endorsement Required) CI ru Certified Fee Postmark Here Total Postage & Fees c:O rn ru [J"' U.S. Postal Servicew CERTIFIED MAIL" RECEIPT (Domestic Mail Only; No Insurance Coverage Provided) ~ [J"' c:O ;:r Postage g ~ Certified Fee CI etum Reciept Fee (End rsement Required) CI Restricted Delivery Fee rn (Endorsement Required) CI ru Total Postage & Fees $ ru CI CI ~ IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA SAMUEL HOWELL, : CIVIL ACTION Plaintiff v. : NO. 06-6724 CIVIL TERM CITICORP TRUST BANK Defendant : JURY TRIAL DEMANDED NOTICE 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 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 LA WYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LA WYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO PROVIDE YOU WITH INFORMA nON ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Pennsylvania Bar Association Lawyer Referral Service 100 South Street POBox 186 Harrisburg PA 17108 Telephone: 1-800-692-7375 or (717) 238-6715 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA SAMUEL HOWELL, : CIVIL ACTION Plaintiff v. : NO. 06-6724 CIVIL TERM CITICORP TRUST BANK Defendant : JURY TRIAL DEMANDED COMPLAINT COMES NOW, the Plaintiff Samuel Howell, by and through his counsel, Sally J. Winder, Esquire and does represent as follows: 1. Plaintiff Samuel Howell is a sui juris adult individual, residing at, and whose mailing address is 20 Slate Lane, Newville, Cumberland County, Pennsylvania 17241. 2. Defendant, Citicorp Trust Bank is a mortgage lender having a principal business address of P.O. Box 371453, Pittsburgh, Pennsylvania, 15251. 3. Plaintiff files this Complaint pursuant to a Notice of Appeal from District Justice civil judgment in favor of Plaintiff and against Defendant. 4. On or about August 7, 2002, Plaintiff Samuel Howell and his wife, Danna L. Howell, entered intG a Mortgage, Note and Security Agreement with Travelers Bank and Trust, FSB, using their residence at 20 Slate Lane, Newville, Pennsylvania, as collateral for the loan. Closing occurred at the residence in Cumberland County, Pennsylvania. 5. As part of the loan agreement with Travelers Bank and Trust FSB, Plaintiff Samuel Howell entered into an optional addendum entitled S.M.A.R.T. Completion Plan Payment Waiver Program which provided in general terms for payment of the mortgage principal and interest payments and the waiver of the insurance premiums under certain terms and conditions in the case of disability. A copy of the S.M.A.R.T. Completion Plan Payment Waiver Program addendum is marked Exhibit "A" attached hereto and incorporated herein by reference as to its complete and entire terms. 6. The Disclosure Statement, Note and Security Agreement, a copy of which is marked Exhibit "B" attached hereto and incorporated herein by reference, states "Each payment will be applied first to interest and fees, computed to the date of payment and the remainder to the balance due (which may include a PWP fee). Each portion of a payment applied to Principal shall be applied first to any recording, appraisal, title insurance and title examination fees, document preparation fees, settlement fees, and other closing fees, with the remainder applied to the PWP monthly fee, if any, and the Principal balance." 7. This Court has general jurisdiction in civil claims and specifically powers to enforce the federal statutes regulating Defendant pursuant to the Truth in Lending Act, 15 U.S.C. Section 1602 et seq, the Fair Debt Collection Practices Act, 15 U.S.C. Section 1692( e), and to secure equitable relief, including rescission, restitution, and disgorgement, against defendant for engaging in unfair or deceptive acts or practices in violation ofthe Truth in Lending Act and its implementing Regulation Z, 12 C.F.R. section 226. 8. Under the terms of the Disclosure Statement, Note and Security Agreement, (Exhibit "B" attached) "The Payment Waiver is not insurance and will not pay the outstanding account balance. Finance Charges accrue on the loan account during any Waiver Period." 9. Under the Payment Waiver Program, (Exhibit "A" attached), "After the Borrower has been disabled or involuntarily Unemployed for the Waiting Period and after satisfactory proof of such disablement or involuntary unemployment has been received by the Lender, the Lender will waive the Scheduled Loan Payment and the PWP Monthly Fee due on the PWP Due Date following the 90th consecutive day of any disablement or involuntary unemployment". 10. Plaintiffwas injured October 14,2004, while at work as an over the road driver for Roadway Express, Inc. and subsequently was determined disabled under the terms of the Payment Waiver Program. 11. Plaintiff remained disabled and did not return to work at his regular employment as an over the road driver until November 2005. 12. Plaintiff continued to make mortgage payments to Defendant during the 90 day disability waiting period, November 2004, December 2004, and January 2005, as required. 13. During the Waiting Period, Plaintiff submitted requested employer statements and physicians statements as well as borrower requests for waiver. These documents were all submitted to American Health and Life Insurance Company, 3001 Meacham Blvd, Suite 200, P.O. Box 2548, Fort Worth, TX 76113. The same address used by Citicorp Trust Bank Payment Waiver Processing Center. 14. Plaintiff was entitled to payment waiver program benefits beginning with his February 2005 payment. 15. Defendant approved and paid a payment waiver in the amount of$I,549.96 for the month of July 2005 on July 15,2005. 16. Defendant approved and paid a payment waiver in the amount of$1,549.96 for the month of August 2005, on March 13,2006. 17. Plaintiff paid the November 2004, December 2004, and January 2005, payments which became due and payable during his PWP disability 90 day waiting period. 18. Plaintiff paid his February 2005, mortgage payment which was subsequently also paid by waiver July 1,2005. 19. Plaintiff paid his March 2005, mortgage payment which was subsequently also paid by waiver July 1,2005. 20. Plaintiff paid his April 2005, mortgage payment which was subsequently also paid by waiver July 1,2005. 21. Plaintiff paid his May 2005, mortgage payment which was subsequently also paid by waiver July 1, 2005. 22. Defendant received double payments for the months of February, March, April, and May 2005. 23. Defendant creditor accepted and accounted all sums paid by Plaintiff as payment for interest, principal, late fees, and completion plan (PWP) fees in connection with his mortgage loan balance. 24. Defendant creditor was obligated under the Truth in Lending Act, and Regulation Z to treat the credit balance it received from the Payment Waiver approved and received from the American Health and Life Insurance Company, or Citifinancial, whichever entity actually performed the transaction, as credit to the balance on the consumer's account and refund any part of the remaining balance as set forth in Title 12 CFR Banks and Banking Section 226.21 Treatment of credit balances. 25. Plaintiff believes and therefore avers that Citicorp personnel were aware of the obligation to refund and credit as set forth in the banking regulations set forth above when Plaintiff spoke with Citicorp personnel in July 2005. 26. In July 2005, after receiving payment from the insurance company, Citicorp personnel offered to either refund Plaintiffs overpaid balance, or apply the overpayment as credit against payments, monthly, on account of his mortgage, as though the regular monthly payments were being made from escrowed funds. 27. During this July 2005, conversation, Plaintiff agreed to have Citicorp credit his account balance on a monthly basis thus crediting the account for August, September, October, November, 2005; Citicorp acknowledged that Plaintiff would have no payments due then until the December 2005, payment. 28. This agreement to hold Plaintiffs funds and account them on a monthly basis toward regular, timely payments was an agreement to create a de facto escrow account and credit the payments in the same manner as would be reflected on a regular amortization of the mortgage payments. 29. Contrary to the agreement, Defendant did not in fact create an escrow fund or account for these payments on a regular monthly basis. 30. Defendant never credited the account or refunded the money to Plaintiff. 31. Defendant has contrary to law, and in willful and flagrant disregard of the federal banking regulations failed to account for Plaintiff s funds in the amount of $6,199.84 or to refund this amount. 32. Monthly statements sent to Plaintiff from August 23,2005 through November 22,2005, show payments due in the amount of$I,402.19, regular payments of principal and interest, and the completion plan fee of $147.77; there are no credits for funds of Plaintiff nor are there any statements of accruing interest or late charges claimed due and owing by Defendant. 33. Plaintiff resumed his regular monthly mortgage payments in December 2005, as he understood his obligation under the agreement with Defendant. 34. In December 2005, Defendant failed and refused to account the payment to principal and interest instead accounting the entire payment to interest charged by Defendant on the principal mortgage balance from July 12,2005 through December 24,2005, or additional interest of $4,530.74. 35. Defendant continued to account the entirety of all payments by Plaintiff as interest until May 20, 2006. 36. Defendant, in violation of the loan instruments charged Plaintiff interest twice for the period of July 2005 through December 2005, never notifying Plaintiff of accrued interest or "Finance Charge" due under the loan instruments. 37. Defendant in further contravention of the law failed to account for $6,199.84 of Plaintiffs monies received by Defendant and has charged Defendant for interest during months when Defendant had agreed Plaintiff s monies would be credited as regular payments which would pay accumulated interest plus principal under the regular loan amortization. 38. Defendant has failed to properly account for principal and interest payments received from Plaintiff and properly credit the principal balance due on this mortgage loan which should be $115,932.42 as of September 12,2006. 39. Under the Truth in Lending Act and Regulation Z, Defendant was obligated to refund the $6,199.84 overpayment, or, at the very least, disclose the creation of escrow and the intention to credit Plaintiff s payments from the escrow it had agreed to create. 40. Defendant failed to refund Plaintiffs $6,199.84, or disclose any escrow or to create such escrow, to the detriment of the Borrower Plaintiff. 41. Defendant's course of conduct in refusing to credit Plaintiff s account balance and disclose any additional finance charges it claimed due are in violation of the Truth in Lending Act, and Regulation Z. 42. Defendant's practice of accepting claims under the Payment Waiver Program, processing them after the payment due date, and using the American Health and Life Insurance Company as the disability insurance provider while claiming in the Note and Security Agreement that the payment waiver program is not insurance is fraudulent and designed to avoid the requirements of the Truth in Lending Disclosure Act and Regulation Z. 43. Defendant's course of conduct in dealing with Plaintiffs disability claim is false, misleading and fraudulent in that Defendant misrepresented that the loan payments comply with and are accurate under the loan instrument. 44. In truth and in fact, because of the practices described in paragraphs 35 through 39, above, Defendant's representations of loan payments do not comply with or are not accurate under the loan instrument. Therefore, the representations set forth in paragraph 41 and 42, above, are, false and misleading in violation of the Federal Trade Commission Act. 45. In the course of conduct of offering and extending credit and throughout the duration of their loans, defendant has represented, expressly or by implication, that they will maintain and provide to borrowers accurate records of borrower accounts. 46. In truth and in fact, Defendant did not maintain and provide to Plaintiff accurate records of Plaintiff s account. Therefore, the representations set forth in paragraph 4i'above were and are, false and misleading. 47. Plaintiff has sustained damages by Defendant's failure to credit Plaintiffs account for payments made in the amount of $6,199.84 plus additional interest charges in the amount of $4,530.74, or a total of$1O,730.58. 48. Defendant's course of conduct has been obdurate, willful, and in careless and wanton disregard of the Defendant's obligations imposed by the Federal Trade Commission and banking regulations, Truth in Lending and Regulation Z aU designed to fairly and accurately disclose to consumers the terms and obligations under financing contracts including credit transactions where equity in residential dwellings is used as collateral. 49. Plaintiff believes and therefore avers that Defendants actions expose it to Federal Trade Commission civil penalties in excess of $11 ,000.00. 50. Plaintiff further believes and therefore avers that there are other consumers similarly affected by these same practices by Defendant who would have similar claims. Therefore, Defendant would be subject to class action claims and charges by the Attorney General of violations for these predatory lending practices, aU of which subject Defendant to civil penalties under Title 15 of the United States Code. 51. Plaintiff avers that Defendant knew in July 2005, that Plaintiff was entitled to a refund of the $6,199.84, and that Regulation Z does not provide for creating escrows and keeping overpayments, but rather requires a refund to the consumer. 52. Plaintiff believes and therefore avers that Defendant's actions are in violation of banking regulations which would subject it to civil penalties which under the federal banking laws and regulations are in the nature of punitive damages and therefore Plaintiff is entitled to punitive damages. 53. Plaintiff believes and therefore avers that in class actions asserted under the federal banking laws and regulations, Lenders can be required to adjust principal loan balances to reflect corrected balances and that such power is within the general equitable powers of this Court. 54. Further, Plaintiff believes and therefore avers that Defendant has intentionaUy and persistently overcharged Plaintiff and failed to apply Plaintiffs monies so that his credit rating has been adversely affected and he has been unable to determine a proper pay-off amount of this loan thus subjecting him to further predatory practices by Defendant. 55. Defendant is a large national banking organization with millions of doUars of assets far in excess of the Plaintiffs resources. 56. Plaintiff has incurred and will incur attorney fees as a result of Defendant's obdurate and willful misconduct and fraudulent and misleading course of conduct in this case. 57. If this matter were filed as a class action, Plaintiff would be entitled to an award of attorney fees as weU as an award of at least $500,000.00 civil penalty for failure to make proper disclosure. Plaintiff should likewise be entitled to attorney fees and twice the amount of the finance charge in connection with the transaction, which on the face of the loan instrument is $113,465.48, thus entitling Plaintiff to an award of $226,930.96 as punitive damages. WHEREFORE, Plaintiff prays this Honorable Court enter judgment in favor of Plaintiff and against Defendant in the amount of $10,730.58, order that Defendant credit Plaintiffs principal loan balance $4,198.41 as of September 12,2006, punitive damages in the amount of $226,930.96, plus attorney fees. RespectfuUy submitted, ~ SaUy 1. Attorney r Plaintiff 9974 MoUy Pitcher Hwy. Shippensburg, P A 17257 (717) 532-9476 VERIFICATION I verify that the statements made in this pleading are true and correct to the best of my information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Date: /d-w J~ - {)(P ~~0' . MUEL HOWELL Disclosure Statement, Note and Security Agree41ent Addendum $.M.A.R.T. COMPLETION PLAN PAYMENT W AlYER PROGRAM (hereinafter referred to as "PWP") THIS IS AN OPrIONAL AGREEMENT BETWEEN THE LENDER AND TIlE BORROWER IT IS NOT AN INSURANCE CONtRACT PLEASE READ TIDS ADDENDUM CAREFULLY. THERE ARE LIMITATIONS, EXCLUSIONS AND/OR REQUIRED PROCEDURES THAT AFFECT THE LOAN PAYMENTS THAT MAY BE WAIVED UNDER TIDS ADDENDUM. EXCEPT AS OTHERWISE PROVIDED HEREIN, ALL TERMS AND CONDITIONS OF THE DISCLOSURE STATEMENT, NOTE AND SECURITY AGREEMENT FOR THE LOAN ACCOUNT REFERRED TO BELOW ARE INCORPORATED IN AND ARE APPUCABLE TO THIS ADDENDUM. Lender: Waiver BeBeftts under this PWP ateDd solely to die covend Borrower(s) shown below in tbis schedule. (herein referred to as the "BORROWER"): Travelers Bank & Trust, fsb First Borrower Second Borrower 100 Commerce Drive Newark, DE 19713 SAMUEL E HOWELL No Coverage LOAN INFORMATION PWP INFORMATION Lou AecouDt No. PWP MODtbIy Fee: 147.77 PWP Due Day: AmmaI Fee: 1,773.24 Same as Scheduled Loan Payment Due Day 3244483 (See Section B - Payment of MoDlhly Fee) Date of Loan PWP Elfeethre Date: PWP SeheduIed TerJIIiMtioD Date: 08{12{2017 08/07/2002 08/07/2002 or older BORROWER's Ale 65, whk:bever Is eerier SebecIuJed Lou MaturIty Date DlsabDlty Involuntary Unemployment 08/12/2017 PriDcIpII Loan AmOUDt "_IilIfi~ ~. 90 Days $ 143,428.24 Sc~ Lou Pa,meat AmouDt ad Due Day WlIiver Am01Ult: Scheduled Loan Payment Scheduled Loan Payment See Disclosure Statement, Note and Security Agreement MaxlJDum Waiver [60] Scheduled Loan Payments 12 Scheduled Loan Payments Umil: per Condition per OccurreDCe Section A - ELIGmILITY (Check Correct Answers) 1. Have you in the past 5 years, been treated for, or been diagnosed as having cancer; stroke; AIDS. AIDS Related Complex, or any other immunological disorder (including testing positive for tile HIV virus); hepatitis C; alcoholism or substance abuse; or any disease or disorder of tile heart, liver, kidneys, or lungs? First Borrower ) Yes [ ~NO Second Borrower [N/A) Yes [N/A) No 2. 1he foDowing question refers to the back, neck or spine: Have you in the past 2 years received disability benefits, been hospitalized or missed 7 or more consecutive days of work as a result of disease. ugury, sprain or slrain to the back. neck or spine? First Borrower [ ) Yes [ Vi No Second Borrower [N/A) Yes [N/A) No 3. Are you unemployed or working for less than 30 hours per week'? First Borrower [ I Yes [ v""] No 4. First Borrower's Date of Birth: 03/05/1955 (correct birth date ] Disagree [N/AI No [....{'Agree Second Borrower [N/A]Yes Second Borrower's Date of Birth: N/A [N I A] Disagree [N/A] Agree (correct birth date 5. Have you used any form of tobacco within the past 12 months? First Borrower r./'i' Yes [ I No Second Borrower (N/A] Yes ~Y.h;bl'1- ~A J' [N/A) No Payment Waiver Benefit: ,UdL IIlt'LX' n~ J "In . ,."",...MIiflhuy 1"~UJr;.:WIr.WMfIJMrlllfll[ll~lIII~mf' pr~nlHl1lli.IIlII,lliI~..l~~~ill.~~~~!t~~~~~~.~iIt ~...~_._.Iti'd-1'llllllL~ctl~~~~.~t. If the BORROWER remains Disabled or Involuntarily Unemployed on subsequent PWP Due Dates, the Lender will waive sucb payments for eacb sucb clue date. Such payment waivers are subject to the Disabilily ExdusioDs, InvohmWy Unemploymeut ExdusJoos. the M-<dmum Waiver Limits, and the other provisions of this PWP. _..4~,~'lr._,~_{"'.;I'" ""ilII" _JIIIi '''~_~_d lII'e subjed: to Lender's rights upon default under the underlyiag note aDd mortpge or deed of trust. For a final balloon payment (if any), the maximum amount that will be waived is the amount of the prior month's Scheduled Loan Payment plus 5%. Except in the case of Loan Refinancing, Payment Waiver Benefits will not extend beyond the PWP Scheduled Termination Date (see Loan RefIoandng below). Misstatement of Age: If the BORROWER's date of birth in Section A - ELIGIBILITY is incorrect, the amount of the Scheduled Loan Payments waived will be adjusted to tbe amounts that the PWP Monthly Fee would have purchased at tbe correct age. H, according to the correct age, this PWP would not have been issued, then the Lender will not waive any payments, and a full refund of PWP Monthly Fees paid will be made to the BORROWER by check or by credit to the loan account at Lender's option. If PWP Monthly Fees are collected by the Lender beyond the date on which the PWP would have terminated according to the BORROWER's correct age, then the Lender will not waive any payments beyond the date of the corrected PWP Scheduled Termination Date and a refund of tbe PWP Monthly Fees will be paid or credited to the BORROWER for any PWP Monthly Fees received by the Lender for periods beyond such date. TermiDatIon: Tbe BORROWER may terminate this Addendum at any time by sending a signed written request to the Lender. Hthe BORROWER terminates this Addendum within 30 days of the PWP Effective Date, any PWP Monthly Fees that have been paid to the Lender will be credited to the BORROWER's Loan Account. The Lender may terminate this PWP by giving 60 days advance written notice to the BORROWER, unless loan payments are being waived at the time of the notice, in wbich case, termination will become effective when such waivers cease under the terms of tbis PWP. The PWP will terminate upon the earliest of the follOwing occurrences: (1) on the date when the sum of past due PWP fees equal or exceed 5 times the PWP Monthly Fee; (2) the PWP Scheduled Termination Date; (3) the date the BORROWER's loan account is paid off, renewed, refinanced (see Loan ReftnaaciDg below), or a default is declared by Lender; (4) death of the BORROWER,' (5) the dale the BORROWER reaches age 65; (6) the date of termination indicated in Lender's notice of termination; or (7) the date the Lender receives BORROWER's written request for termination. Loan Re~: This paragraph applies only in the event the Loan Account to whicb this PWP applies is refinanced by Lender (i.e., a new loan and account number is substituted for the Loan Account) at the time payments are being waived hereunder on the date of refinancing. This PWP shaD terminate as of the date of the refinancing; however, if payments are being waived hereunder on the date of refinancing, such payments will continue to be waived in accordance with the limits and terms of tbis PWP. H at such time of refinancing, BORROWER chooses to purchase a new PWP (if offered by and available from Lender at the time of such refinancing) to cover the new loan. Section A - ELIGIBILITY requirements I through 3 above will be waived. but any Condition or Occurrence under tbis PWP will be considered a Condition or Occurrence under the new PWP, and no new Waiver Benefits are or will be payable for any sucb Condition or Occurrence. Fees applicable to the new PWP will be subject to the pricing in effect at the time the new PWP is purchased. Lender Avoidance: During the first two years from the PWP Effective Date the Lender may void or rescind this PWP if the BORROWER fails to answer any question in Section A - ELIGIBILITY or any answer thereto is incorrect. In the event of such avoidance or rescission a full refund of PWP Monthly Fees paid (less the amount of any payments waived) will be made by check or credited to the BORROWER's Loan Account, at Lender's option. After the second anniversary of the PWP Effective Date, the Lender may not void. rescind, or otherwise challenge the validi1y of tbis PWP. Arbitration: Any claim. dispute. disagreement or legal proceeding involving tbis PWP is subject to any arbitration agreement applicable to the Loan to which this PWP is related. The BORROWER should read the arbitration agreement contained in the applicable Disclosure Slatement. Note and Security Agreement, which terms and conditions are incorporated by reference herein. Section C . DISABILITY DIsability DeIIned: A BORROWER is considered to be disabled if, because of bodily injury sustained by the BORROWER while this PWP is in effect, or illness or disease of the BORROWER which commences while this PWP is in effect, BORROWER is not engaged in any employment and is unable to perform the essential and customary duties of BORROWER's occupation. After baying been Disabled for 12 coosecutive months, the BORROWER will continue to be considered Disabled only if BORROWER cannot engage in the duties of any occupation for whicb BORROWER is reasonably suited by reason of education, training or experience. Disability Exclusions: No waiver of payments will be made if the BORROWER is not under the care .of a licensed physician (other than BORROWER or a member of BORROWER's immediate family); or for any period of Disability after the BORROWER reaches age 65; or for Disability resulting from: (I) intentionally self-int1icted i1\juries, or (2) a medical condition wbich mauifests itself to the BORROWER within 6 months preceding the PWP Effective Date and causes disability within the 6 months following the PWP Effective Date. A medical condition will be considered to have manifested itself when medical care. advice or trealment has been given or there have been symptoms that would cause an ordinarily prudent person to seek diagnosis. care or treatment. Condition: Condition means the cause(s) that resulted in the BORROWER qualifying for waiver due to being Disabled in accordance with this sPr.tinn r., If the BORROWER bas been diamosed with or treated for multiple injuries, illness, or disease during such period of Disability for BORROWER's Filing Requirements for WaiVer: Proof of Disability, including completion of tIie Lender's required benefit request form. signed by the BORROWER's physician. must be sent to the Lender no later than ISO days after the Disability begins. After the initial proof of Disability has been furnished. subsequent benefit forms must be filed with the Lender every 30 days while Disability continues. UntO the Leader makes a detennination, the BORROWER Is responsible for making the Scheduled Loau Payments IIDd die PWP Monthly Fee. The Lender has the right. at its expense, to have the BORROWER examined by a licensed physician as often as reasonably necessary to adjudicate a claim. The BORROWER must notify the Lender within 30 days of BORROWER's return to work. Section D - INVOLUNTARY UNEMPLOYMENT Involuntary Unemployment Defined: Involunlary Unemployment means loss of compensation as the result of loss of employment due to individual or mass layoff; general strike; involuntary termination by the employer other than termination due to willful or criminal misconduct; unionized labor dispute; or lockout. The BORROWER must also qualify for UDemployment benefits under state unemployment laws in the state in which BORROWER is employed and must be registered for work with a state unemployment office or a recognized employment agency within 30 days after the last day employed. and remain so registered for the waiver period. Occurreoc:e: Occurrence means a continuous period of Involuntary Unemployment during which the BORROWER has qualified for a waiver of payments. Involuntary Unemployment ExdusioDs: No waiver of payments will be made for any period of Invobmtary Unemployment of which the BORROWER was notified. either orally or in writing. within 90 days prior to the PWP Effective Date. No waiver of payments wDl be made for aDy period of Involuntary Unemployment it the BORROWER becomes Involuntarly Unemployed (1) within 12 months from the PWP Etfeetive Date and (2) has not been employed for a miDimum of 30 hours per week in a 1lOIHe8SODaI occupation for the last 12 c:oasecutive montbs fm........teIy precediDg the period of Involuntary Unemploymeat. After an Occurrence, no waiver of payments will be made for any subsequent period of Involunfary Unemployment unless the BORROWER has returned to work for at least 12 consecutive months. For purposes of tbis eXClUSionary paragraph (when referring to "12 consecutive months'), employment interruptions of less than 30 days or scheduled breaks for members of the teaching profession who have been under annual contract for such 12 months will be disregarded. Additionally, no waiver of payments will be made for Involuntary Unemployment which commeDCes aOer the BORROWER reaches age 65 or for unemployment due to: (I) voluntary termination or forfeiture of employment, salary, wages or employment income; (2) retirement; (3) disability caused by sickness, illness, disease, accident, injury, or pregnancy; (4) seasonal occupations; (5) termination of employment as the result of willful or crUnina.l misconduct; (6) scheduled termination of an employment contract; (7) scheduled suspension of employment for a specific time period (e.g. seasonal layoffs); or (8) imprisonment. If BORROWER is a sole proprietor or partner of a partnership. no waiver of payments will be made due to dissolution of. or temporary ceasing of business of, such sole proprietorship or partnership. Maximum Waiver Limit for Involuntary Unemployment: For an OccurreDCe of Involunfary Unemployment, the Lender will waive payments for a maximum of 12 months. BORROWER's Filing Requiremeuts for Waiver: Proof of Involuntary Unemployment. including completion of the Lender's required benefit request form, must be sent to the Lender no later than ISO days aOer the Involuntary Unemployment besins. After the initial proof of Involuntary Unemployment has been furnished, subsequent benefit request forms must be filed with the Lender every 30 days while Involuntary Unemployment continues. UDtll the Lender makes a detenniDadoa, the BORROWER Is responsible for maIdDg die SdaeduIed Loau Payments and the PWP MoathIy Fee. The Lender may accept other proof of Involunlary Unemployment as it deems appropriate if the BORROWER is not at work due to a general strike. unionized. labor dispute. or lockout. The BORROWER must notify the Lender within 30 days of BORROWER's return to work. THE BORROWER UNDERSTANDS THAT THE PURCHASE OF TIUS PWP IS COMPLETELY VOLUNTARY. IT IS NOT REQUIRED BY THE LENDER, AND HAS NOT BEEN MADE A CONDITION OF THE LOAN. NEITHER THE LENDER NOR ANY REPRESENTATIVE HAS IN ANY WAY INDICATED THAT THIS PWP IS A PRECONDITION TO EXTENDING CREDIT. THE BORROWER FURTHER UNDERSTANDS THAT BORROWER CAN CANCEL THIS PWP AT ANY TIME BY MAKING WRlTI'EN REQUEST TO THE LENDER. BY SIGNING BELOW, THE BORROWER REPRESENTS AND ACKNOWLEDGES THE FOLLOWING: (1) THAT THE BORROWER HAS COMPLETED SECTION A-ELIGmILITY ABOVE AND HAS PROVIDED TRUTHFUL ANSWERS TO EACH OF THE QUESTIONS THEREIN; (2) THAT IF QUESTION 1, 2 OR 31N SECI'ION A-ELIGIBILITY IS ANSWERED "YES" OR IS LEFT BLANK, OR IF THE BORROWER IS CURRENTLY AGE 62 OR OLDER, BORROWER WILL NOT BE ELIGmLE FOR WAIVER BENEFITS UNDER THIS PWP UNLESS OTHERWISE SPECIFICALLY PROVIDED FOR AS PART OF A LOAN REFINANCING; AND (3) THAT BORROWER HAS READ AND UNDERSTANDS EACH OF THE TERMS AND CONDITIONS OF THIS PWP ADDENDUM SET FORTH ABOVE. /J # j/ /I" .-.-.. -? . / Disclosure Statement, N. . ~ and Security Agreeme Borrower(s) (Name and Mailing address) SAMUEL E HOWELL DANNA L HOWELL 20 SLATE LANE NEWVILLE PA 17241 Lender (Name, address, city and state) TRAVELERS BANK & TRUST, FSB 100 COMMERCE DRIVE NEWARK DE 19713 Account No. 3244483 Date of Loan 08/07/2002 rANNUAL PERCENTAGE RATE """ rnNANCE CHARGE """' /'Amount Financed "Total OfPaymeDlS , The cost of Borrower's credit as The dollar amount the credit will The amount of credit provided to The amount Borrower will have a yearly rate. cost Borrower. Borrower or on Borrower's beha1f. paid after Borrower has made all payments as scbedu1ed. "- 8.9l 'l1...J lrr...$ 113,465.48 ~,$ 138,928.72 /,$ 252,394.20 / Pavment Schedule: ~ If checked, Borrower is giving a security Number of Amount of When Pan:ents iDlerest in: Payments PaymeDlS Are e [!] Real Property 0 MobileIManufactured Home 180 $ 1,402.19 MONTHLY BEGINNING 09/12/2002 o Other: $ Late Cbarae: If a payment is more than 15 days late, Borrower will be charged 5.0 " of the $ amount in default. S Prepayment: If Borrower pays off early, Borrower will not be entitled to a refund of part of the finance charge; See the contract documents for any additional information about nonpayment, defauh, and IX! may 0 will not have to pay a penalty. any required repayment in full before the schedoIed date, and prepayment refunds and Demand Feature: None. peDalties. Additional Information: P1UNCIPAL POINTS '143,428.24 ' 4,177.52 BUYDOWN FEE 'NONE OATS CHARGES BEGIN 08/12/2002 IDsunmce Disclosure: If Borrower grants Lender a security interest as indicated in this document, insurance to protect tbe Lender's interest in tbe collateral may be required. If this loan is secund by real property, or mobDellllllllufadured home, then fire, utauIed coverage, collision aadlor c:omprdaaIsive casualty iIIsuranc:e Is n:quIred DIIIIIIDg .Leaclel" 8S Iou payee, UDtiI die loan is fuDy paid. Additionally, if the property is located in a flood plain, flood insuraDce will be required. The amount of such insurance must be sufficient to satisfy the unpaid balance of the loan. or be equal to the value of the collateral, whichever is less. Such insurance may be provided through an existing policy or a policy obtaioed independently and purchased by Borrower. Borrower may obtain such insurance from any insurer that is reasonably acceptable to Lender. If required insurance terminates befOre the loan is repaid, Borrower promises to obtain acceptable substitute insurance. If Borrower is in default. and Lender demand'll that Borrower immediately repay the loan in full. Borrower authorizes the insurer providing any required insurance that is financed by Lender in connection with this loan to terminate such policy or coverage, upon request of Lender. and directs that the insurer deliver the premium refund, if any, to the Lender which may at its option apply to the unpaid balance of the loan or return it to Borrower. Any such application of premium refund will not affect the amount or due date of subsequent paymcmts on tbe loan. but may reduce tbe number of such payments. Pavmeut Waiver Proaram ("PWP"): Borrower is not required to purehue Paymeot Waiver protedioD to obtain credit. Lender's decision to graat credit will not be and is Dot affected by Borrower's decision to pun:hue or refuse to purchase optioaBl Paymeat Waiver Protectioo. Payment Waiver is an optiooal provision of Borrower's loan agreement and is described and defined in the attached Payment Waiver Program Addeadum, which is incorporated herein by reference and governs Lender's agreement and Borrower's benefils. In return for a fee billed moDtbIy and added to the scbeduled monthly loan payment amount indicated above, and under certain conditioDs, !he Lender will waive the scbeduIed monthly payment on Borrower's loan agreement and the PWP monthly fee for a period of time upon the occurrence of a Disability or Involuntary U 10 nt. . . . . er s eru and ~,~d";dI.out Iimlt8tioD, the DIOIlddy fee, Cerms, eligibility, exclusions, tenDiaatioD date, waitiDg period and ....duUlU waiver Umit, CODtaiaed in die ad&8ebed PWP Addeudum. Coverage will not be provided unless Bonower signs and agrees to pay the applicable monthly fee in addition to the loan payment disclosed above. I/We request Payment Waiver protection as described in the attached PWP Adde t is understood that coverage wDI extend solely to the Borrower DIUlled on the PWP Addendum (die Covered "BORROWER"). PWP MoDtbly Fee: $ 147.77 Borrower's Signature TERMS: In tbis Disclosure Slatement, Note and Security Agreement, the word wBorrowerw refers to the persons signing below as Borrower, wb.etlJer one or more. If more than one borrower signs, each will be responsible. individually and together, for aD promises made and fur repaying the loan in full. The word "Lenderw refers to the lender, whose name and address are shown above. PROMISE TO PAY; In return for a loan that Borrower bas received, Borrower promises to pay to tbe order of Lender the Principal amount shown above, plus interest on the unpaid Principal balance from the Date Charges Begin shown above at the agreed rate of 08. 3784 " per annum. Lender will compute interest on the unpaid Principal balance on a daily basis from the date charges begin until Borrower repays the loan. If Borrower does DOt make sufficient or timely payments according to the payment schedule above. Borrower will incur greater interest charges on the loan. On the N/A month anniversary of tbe Date of Loan shown above, the rate of interest sball decrease to N/A " per annum on the unpaid Principal balance until the balance is paid in full. PrinciDal and interest shall be payable in consecutive monthly insUlIlI'lP.nts in the amounts shown above, except tbat any appropriate adjustments will fiv:hib,'f- OrB 11 SAMUEL E HOWELL DANNA L HOWELL 3244483 08/07/2002 PREPAYMENT: Borrower may make a full or plUccll prepayment of the unpaid Prim:ipal balance at a..,"lime (check applicable box): o without penalty. [!] if tbis loan is secured primarily by a Mortgage or Deed of Trust on residential real property and Borrower prepays tbis loan in full duriug the first three (3) years from the Date of Loan, Borrower agrees to pay a prepayment fee. in addition to any accrued interest and charges, calculated on the average balance of the principal obligation outstanding as of the last business day of each month for the prior six (6) months. or such lesser period as shall have elapsed from the Date of Loan as follows: 1. If prepaid in full within one year of the Date of Loan, a fee of 5%. 2. If prepaid in full within two years of the Date of Loan, a fee of 4 %. 3. If prepaid in full within three years of the Date of Loan, a fee of 3 %. If prepayment occurs after three (3) years from the Date of Loan, there will be no prepayment fee. When Borrower makes a prepayment, Borrower will tell Lender in a letter that Borrower is doing so. Lender will use Borrower's prepayments In reduce the amoums of unpaid interest and charges and the amount of principal that Borrower owes under this Note. Partial prepayment will not affect the amount or due date of subsequent scheduled payments on the loan, unless Lender agrees in writing to any such delay or cbaDge, but may reduce the number of such payments. Borrower underslands if the terms of this paragraph provide for a prepayment penalty, such terms do not apply to a renewal or refinancing of tbis loan by Lender, nor to the prepayment of this loan from the proceeds of any loan made in the future by Leuder to Borrower. No prepayment charge will be collected if the loan is accelerated due In Lender's exercise of any due on sale clause in the Mortgage or Deed of Trust sec . this obligation. .J;1ifiiI- - by -- - - ---....... - - tOe.......... -... -........ whether or not a prepayment fee, or peaaIty, may be Imposed on Borrower's loaD. SECURITY AGREEMENT: 8 A. If tbis box is checked, this loan is unsecured. B. If this box is checked, to secure the payment and performance hereof. Borrower gives to Lender a security interest under the Unifonn Commercial Code in any property for which a description is completed below and all parts and equipment now or later added to the property and any proceeds of the property, all which will be called "Property". See below for additional terms applicable In tbis security interest. 1. MobileIManufactured Home: ~ I Y_M_ Model No. Or Name Body Type IdeDtific:ation Number 2. Other Property: [!] C. If this box is checked, Borrower's loan is secured by a Deed of Trust or Mortgage of even date on real property which requires Lender's written consent to a sale or transfer of the encumbered real property located at 20 SLATB LANE NEWVILLE PA 17241 . See either the Deed of Trust or the Mortgage for terms applicable to Lender's interest in Borrower's real property ("Property"). OWNERSHIP OF PROPERTY: Borrower represents that the Property is owned by Borrower free and clear of all liens and eJICUJ1lbrances except those of which Borrower bas informed Lender in writing. Prior to any default, Borrower may keep and use the Property at Borrower's own risk, subject to the provisions of the Uniform Commercial Code. If tbe Property includes a mobile or IIlllIlUfi1ctur home. Borrower will. upon request. deliver the certificate of tide, if any. to the home to Lender. USE OF PROPERTY: Borrower will DOt sell. lease, encumber, or otherwise dispose of the Property without Lender's prior written consent. Borrower will keep the Property at Borrower's address (as shown 00 page I) unless Lender bas granted permission in writing for the Property to be located elsewhere. The Property will be used only in the state in which Borrower lives. Borrower will not use or permit the use of tbe Property for hire or fur illegal purposes. TAXES AND FEES: Borrower will pay an taxes, assessments, and other fees payable 00 the Property, tbis Disclosure Statement, Note and Security Agreement, or the loan. If Borrower fails to pay such amounts, Lender may pay such amounts for Borrower and the amounts paid by Lender will be added to the unpaid balance of the loan. REQUIRED INSURANCE: If Borrower fails to obtain or maintain any required insurance or fails to designate an agent through whom the insurance is to be ob1ained, Leuder may purchase such required insurance for Borrower through an agent of Lender's choice, and the amounts paid by Lender will be added to the unpaid balance of the loan. In any such event, Borrower understands and acknowledges that (I) the insurance company may be affiliated with Lender. (2) Lender's employee(s) may be an agent for the insurance company. (3) such employee(s) is not acting as the agent, broker or fiduciary for Borrower on tbis loan, but may be the agent of the insurance company, and (4) Lender or the imurance company may realize some benefit from the sale of that insurance. FINANCING STATEMENTS: Borrower will sign all financing statements, continuation statements, security interest filing statements. and similar documents with respect to the Property at Lender's request. LATE CHARGE: If a payment is more than 15 days late, Borrowers agree to pay a late charge of 5 . 0 % of the amount of the unpaid amount of tbe installment in default. Lender may. at its option, waive any late charge or portion thereof without waiving its right to require a late charge with regard to any other late payment. RETURNED PAYMENT FEE: Lender may charge Borrower a fee of $ 10.00 ,plus actuaI expenses incurred, for each check, draft, order of withdrawal or like instrument or payment order given to Lender by Borrower or by Borrower's agent in connection with this loan that is not honored because of insufficient or uncollected funds or because no such account exists. LOAN CHARGES: If a law that applies to tbis loan and that sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in coooection with tbis loan exceed tbe permitted limits, then (i) any such loan charge will be reduced by the amount necessary to reduce the charge to the permitted limit, and (ii) any sums already coDected from Borrower that exceeded permitted Ibn.Us will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under tbis loan or by making a direct payment In Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge. SAMUEL E HOWELL DANNA L HOWELL 3244483 08/07/2002 If any insurance coverage is obtained at Lender's .~__,;e. upon Borrower's defiwlt, Borrower hereby gi._ Lender a power of attorney ro cancel part or an of that insurance and ro apply any returned premiums to Borrower's unpaid balance. Lender may exercise its option to accelerate during any default by Borrower regardless of any prior forbearance, acceptance of late payments or late charges, or waiver of any rights. If this loan is secured by a JDobi1e home, at least 30 days befure Lender takes action to accelerate the unpaid balance or to repossess or sell the mobile home as a result of Borrower's defiwlt. Lender will provide a written notice to Borrower concerning the default and Borrower's right to cure the default. Lender is not obligated ro give Borrower more than two such notices in a 12-month period. EFFECTS OF DEFAULT: If Borrower defaults, Borrower will deliver the Property to Lender or, upon Lender's demand, assemble the Property and make it available ro Lender at a reasonably convenient place. Lender may, without previous notice or demand and without legal process, peacefully enter any place where the Property is located and take possession of it. The Property may be sold with notice at a private or public sale at a location chosen by Lender. At such a sale, Lender may purchase the Property. The proceeds of the sale, minus the expenses of taking, storing and sening the Property, including attorney's fees, court costs and other collection expenses, and minus the cost of paying off and removing any superior liens or claims on the Property, will be credited ro the unpaid balance of Borrower's loan. If the proceeds of the disposition are insufficient to payoff the entire balance, Borrower agrees to pay any remaining balance upon demand. If Borrower has left other property in the repossessed Property, Lender may hold such property temporarily fur Borrower without any responsibility or liability for the property. Notice of the time and place of a public sale or notice of the time after which a private sale will occur is reasonable if mailed ro the Borrower's address at least five days befure the sale. The notice may be mailed ro Borrower's last address shown on Lender's records. LAW THAT APPLIES: Federal law and Delaware law, as applicable, govern this Disclosure Statement, Note and Security Agreement. If any part is unenfurcesble, this will not maIce any other part unenfurceable. In no event will Borrower be required to pay interest or charges in excess of those permitted by law. OTHER RIGHTS: Lender may accept payments after maturity or after a defiwlt without waiving its rights with respect to any subsequent default in payment. Borrower agrees that Lender may extend time fur payment after maturity without notice. The terms of this agreement can be waived or changed only in a writing signed by Lender. Where the context requires. singular words may be read in the plural and plural words in the singular. and references ro the masculine gender may be read to apply to the feminine gender. OTHER TERMS: Each Borrower agrees that Lender can change the repayment terms and release any Property securing the loan, or add parties to or release parties from this agreement without DOtice to any other Borrower and without releasing any other Borrower from his responsibilities. Lender does DOt have to notify Borrower befure instituting suit if the note is not paid, and Lender can sue any or all Borrowers upon the default by any Borrower. Borrower, endorsers, sureties and glJll1'8Dtors, to the extent permitted by law, severally waive their right to require Lender to demand payment of amounts due,. ro give notice of amounts that have not been paid, ro receive notice of any extensions of time ro pay which Lender allows to any Borrower and to require Lender to show particular diligence in bringing suit against anyone responsible fur repayment of tbis loan, and additionally, waive benefit of homestead and exemption laws now in force or later enacted, including stay of execution and condemnation, on any Property securing this loan and waive the benefit of valuation and appraisement. This Disclosure Statement, Note and Security Agreement shaD be the joint and several obligation of all makers. sureties, guarantors and endorsers and shall be binding upon them, their heirs, successors, legal representatives and assigns. Oral agreements or commibnents ro loan money, extend credit, or to furbear from enforcing repayment of a debt, including promises to extend or renew such debts, are not enforceable. To protect Borrower and Lender from misunderstanding or disappointment, any agreements Borrower and Lender reach covering such matters are contained in tbis wriliDg, which is dJe complete and exclusive statement of the agreement between Borrower and Lender. except as Borrower and Lender may later agree in writing to modify it. If any part of the Disclosure Statement, Note and Security Agreement and. if applicable, !be Mortgage or Deed of Trost and accompanying Itemization of Amount Financed is unenfurceable, tbis will not make any other part unenforceable. REFINANCING: Borrower has been advised by Lender that the overall cost of refinancing an existing loan balance may be greater than the cost of keeping the existing loan and obtaining a second loan for any additional funds Borrower wishes to borrow. (Intentionally left blank) SAMUEL E HOWELL DANNA L HOWELL 3244483 08/07/2002 NOTICE OF ARBITRATION PROVISION TIDS ARBITRATION PROVISION PROVIDES THAT ALL DISPUTES BETWEEN BORROWER AND LENDER, EXCEPl' 11IOSE SPECIFIED BELOW, WILL BE RESOLVED BY MANDATORY, BINDING ARBITRATION. YOU THUS GIVE UP YOUR RIGHT TO GO TO COURT TO ASSERT Oil DEFEND YOUR RIGHI'S (EXCEFI' FOR MATTERS THAT AIlE EXCLUDED FROM ARBITRATION AS SPECIFIED BELOW). YOUR RlGHI'S WILL BE DETERMINED BY A NEUTRAL ARBITRATOR AND NOT A JUDGE OR JURY. YOU AIlE ENTITLED TO A FAIR IlEARING, BUT THE ARBITRATION PROCEDURES ARE SIMPLER AND MORE LIMITED THAN RULES APPLICABLE IN COURT. In consideration of Lender making the extension of credit described above and other good and valuable consideration. the receipt and sufficiency of which is acknowledged by both parties. You and We agree that either You or We bave an absolute riJht to demand that any Claim be submitted to an arbitrator in accordaDce with this Arbitration Provision. If either You or We file a Jawsuit. counterclaim. or other action in court. the other party bas the absolute riJht to demand arbitration following the filing of such action. DeIWtIcms for Arbitration Provision. As used in Ibis Arbitration Provision ("Provision"), the foUowing definitions will apply: "You" or "Your" means any or all of Borrower(s) who execute tbis Disclosure Statement. Note and Security Agreement, and their heirs, survivors. assips. and representatives. "We" or "Us" means the Lender under tbis Disclosure Statement., Note and Security Agreement, American Health &: Life Insurance Company. Triton lDsurance Company. and any assignee of Lender. together with all of their respective corporate parents. subsidiaries. affiliates. predecessors. assigDees. successors. employees. agents. directors. and officers (whether acting in their corporate or individua1 capacity). "Credit Transaction" means anyone or more past. present. or fuIUre extension. application, or inquiry of credit or forbearance of payment such as a loan. retail credit agreement. or otherwise from any of Us to You. "Claim" means any case. controversy, dispute, tort. disagreement, lawsuit, or claim now or hereafter existing between You and Us. A CJaim includes. without limitation, anything related to: This Provision, its enforceability, and the arbitrability of any Claim pursuant to Ibis Provision, including but not limited to the scope of Ibis Provision and any defenses to enforcement of this Provision; . Any Credit Transaction; . Any past. present. or t\lture insurance, service. or other product that is offered or purchased in connection with a Credit Transaction; . Any documents or instruments that contain information about any Credit Transaction, insuraoce, service, or product; Any act or omission by any of Us; Fraud or misrepresentation, including claims for failiDg to disclose material filets; . Any federal or state statute or reguJation. or any alleged violation thereof. including without limitation insurance, usury. and lending laws; . Any party's execution of this Provision and/or willingDess to be bound by its terms and provisions; or Any dispute about closing. servicing. conecting, or enforCing a Credit Transaction. Apeement to Arbitrate Claims. Upon written request by either party that is submitted according to the applicable roles for arbitration. any Claim, except those specified below in tbis Provision, sball be resolved by biDding arbitration in accordance with (i) the Federal Arbitration Act. (ii) the Fmancial Services Arbitration Rules and Procedures of JAMSlEndispute. Inc. ("Administrator"), and (ill) tbis Provision, unless we both agree in writing to forgo arbitration. The terms of this Provision shall control any inconsistency between the rules of the Administrator and this Provision. You may obtain a copy of the arbitration rules by calling (800) 448-1660 or by accessing the Administrator's internet site at www.jamsadr.comIfinancial_ru1es.asp. At Your request. We will obtain and provide to You copies of the Administrator's rules and other materials, incWding a form Demand for Arbitration. Any party to this Provision may bring an action, including a summary or expedited proceeding, to compel arbitration of any Claim. and/or to stay the litigation of any Claim pending arbitration, in any court baving jurisdiction. Such action may be brought at any time, even if a Claim is part of a Jawsuit, up unti1 the entry of a final judgment. Pursuant to this Provision, You and We also agree to submit to final. bindiJIg arbitration not only all Claims, but also any claim or dispute You or We bave qainst (i) all persons or entities involved with any Credit Transaction or any other matter covered by Ibis Disclosure Statement. Note and Security Agreement. (it) all persons who siped or executed any document relating to any Credit Transaction or Claim. and (ill) all persons or entities wbo may be jointly or severally liable to either You or any of Us regarding any Claim. Judpaeat. Judgment upon any arbitration award may be entered in any court baving jurisdiction. If timely requested by either party, the arbitrator shaD provide a brief written statement of the reasons for any award. Claims Excluded from Arbitration. The foBowing types of matters will not be arbitrated. This means that neither one of us can require the other to arbitrate: . Any action to effect a foreclosure to transfer title to the property being foreclosed, or exercise of extra-judicial or self-help repossession under applicable Jaw; or . Any matter where all parties collectively (including multiple named parties) seek monetary relicf in the aggregate of $15,000.00 or less in to1aI relief. including but not limited to compensatory. S1atUtory and punitive damages; restitution: disgorgement; costs and fees (includiDg attorneys' fees), or any Claims brought in a small claims court. In the event You aUempt to assert any of Your Claims on bebaIf of a putative class of persons, in violation of other terms in Ibis Provision, the value of Your Claims will, for purposes of this exclusion, be deemed to exceed $15,000.00. In the event that any party fili1s to specuy the amount beiDg sought for any relief. or any form or component of relicf. the amount being sought shall, for purposes of this exclusion. be deemed to exceed $15,000.00. However. should either party initiate arbitration, the other party. at its option. may seek injunctive and I1lODetary relief in arbitration. Participating in a Jawsuit or seeking enforcement of this section by a court shall not waive the right to arbitrate any other Claim. AddItioDaI Tenus. Administration of Arbitration. Arbitration shall be admiDistered by the Administrator, but if it is UDabIe or unwilling to administer the arbitration, then the American Arbitration Association will administer any arbitration required under this Provision pursuant to its Commercial Arbitration Rules and Expedited Procedures. The arbitrator sball make his or her decision in accordance with the applicable Jaw, and shall be empowered to award any damages or other relief provided for under the applicable Jaw. Place of Arbitration. The arbitration shall be conducted in the county of Your residence. unless all parties agree to another location. ~ Either You or We may appeal the arbitrator's award in accordance with the Optional Appeals Procedures of the Administrator. and the award may be subject to judicial review on the grounds stated in 9 U.S.C. 110. No Class ActionslNo Joinder of Parties. You agree that any arbitration proceediDg will oDlyconsider Your Claims. Claims by or on behalf of other borrowers will not be arbitrated in any proceeding that is considering Your Claims. Because You bave agreed to. arbitrate aU ~~. ~ou SAMUEL B HOWELL DANNA L HOWELL 3244483 08/07/2002 Sevenblity. If the arbitrator or any court detem _,8 that one or more terms of this Provision or th.. .ibilrlltion rules are unenforceable. or would make Ibis Provision unenforceable, only sucb terms(s) shan be deemed unenforceable and sball be deemed stricken from this Provision. but such determination sbaR not impair or affect the enforceability of the other terms of Ibis Provision or the arbitration rules. SpecilI1 AckDow~fB. You understand md admowIedge by sJgning Your Dame to this Provisioa that (I) a court aadlor jury wiII.!!!!t hear 01' decide any ClaIm pvemed by this ProvWoa, (if) die fundine for Your Credit TraIIIaetiou wII come In whole or In part from sources 8IIIIIIde tbfs state, wIdeh wIB. ___tLte iDterstate c:ommerce wftbin die II1elUIJnC 01 the UDited States Arbltndoa Ad, 'U.s.C. 111-9, (Iii) diIramlry In an arbitradon proceediag ean be IIIIId1 m.ore limited dum m a coari ~ (Iv) ripCs to appelll an arbitratioD award are v<<y Uadted, 8Dd (v) the rights of die parties hereuader may DOt be euetIy mutual In aD respeds. READ 11IE ABOVE ARBITRATION PROVISION C Y. IT LIMITS C :AIN OF YOUR RlGHI'S, INCLUDING YOUR RIGHT TO OBTAIN RESS !tOU TACTION. S E HOWELL The following notice applies only if tbis box is checked. 0 NOTICE ANY BOLDER OF TIllS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED W1TR TIlE PROCEEDS IlEBEOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR BEREUNDER. By sjpina below, Borrower agrees to the terms contained herein. acknowledges receipt of a copy of tbis Disclosure SlatemeDt, Note and Security A&reement and, if applicable. the M or Deed of Trust and of the accompanying Itemization of Amount FinaDl:ed. aud authorizes the ---- ~~ S (Seal) -Borrower TRAVELERS BANK & TRUST. FSB By: f'<\\('\~ \ \e '&~tc "0er\li(f-' 'Kc.fJ (Name and Title) COMPLETB FOR LOANS TO LOUISIANA RESIDENTS ONLY: Ne VarielUr For IcI~fjcation with an Act of Mortgage passed before me day of at , Louisiana Notary Public Notary Public of Parish , Louisiana SECURITY INTEREST OF NONOBUOOR: Borrower only is personalIy liable for paymem of the loan. Nonobligor is liable aDd bound by all other terms. CODditions, covenants, aDd agreemeDts conlaiDed in this Disclosure Statemeut, Note aDd Security Agreement. inc-hvij"l but DOt limited to the right aDd power of Lender to repossess aDd sell the Property securing this loan, in the event of defitult by Borrower in paymem of this loan. (Seal) Signature Date (Seal) Date Signature o ~:; <-.. _l r-.) = = <:.r" o rq n o -n ~:n me; ~~ :c$ ":.'.- -11 u; 7') :~l'-n ~:; '1> ~~ w -n _~_.i'" -.,... '-:? o w ..... '" IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA SAMUEL HOWELL, CIVIL DIVISION Plaintiff, v. Case No. 06-6724 CITICORP TRUST BANK, Defendant. PRAECIPE TO FILE NOTIFICATION OF AND COPY OF NOTICE OF REMOVAL TO THE PROTHONOTARY: As provided under 28 U.S.C. S 1446(d), please file the attached Defendanfs Notification of and copy of the Notice of Removal filed in the United States District Court for the Middle District of Pennsylvania on January 12,2007. REED SMITH LLP By: ~tf(l~ Michael afal 0 Pennsylvania J.D. No. 200945 Jacqueline B. Penrod Pennsylvania J.D. No. 89794 2500 One Liberty Place 1650 Market Street Philadelphia, P A 19103 Telephone: (215) 851-7100 Facsimile: (215) 851-1420 Attorneys for Defendants CitiCorp Trust Bank Dated: January 12, 2007 PHLLlB-974233.1-JBPENROD 1/12/07 1129 AM .. -\ CERTIFICATE OF SERVICE I hereby certify that, on this 1 ill day of January, 2007, I caused to be served a true and correct copy of the foregoing Praecipe to File Notification and Copy of Notice of Removal by first class United States mail, postage prepaid, upon the following counsel: Sally 1. Winder, Esquire 9974 Molly Pitcher Highway Shippcnsburg, P A 17257 PHLLlB-974233.1-JBPENROD 1/12/07 11 :29 AM IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA SAMlJEL HOWELL, CIVIL DIVISION Plaintiff, v. Case No. 06-6724 CITICORP TRUST BANK, Defendant. NOTIFICATION OF FILING OF NOTICE OF REMOVAL TO THE PROTHONOTARY: As provided under 28 U.S.C. ~ 1446, you are hereby notified that a Notice of Removal of this action was filed in the United States District Court for the Middle District of Pennsylvania on January 12,2007. REED SMITH LLP By j~(U~) Michael falko Pennsylvania J.D. No. 200945 Jacqueline B. Penrod Pennsylvania J.D. No. 89794 2500 One Liberty Place 1650 Market Street Philadelphia, P A 19103 Telephone: (215) 851-7100 Facsimile: (215) 851-1420 Attorneys for Defendants CitiCorp Trust Bank Dated: January 12,2007 PHLLlB-974243.1-JBPENROD 1/12/07 1129 AM CERTIFICATE OF SERVICE I hereby certify that, on this 1 ih day of January, 2007, I caused to be served a true and correct copy of the foregoing Notification of Filing of Notice of Removal by first class United States mail, postage prepaid, upon the following counsel: Sally J. Winder, Esquire 9974 Molly Pitcher Highway Shippensburg, P A 17257 ($(];;o . acqu ine B. Penrod PHLLlB-97 4243. 1-JBPENROD 1/12/07 11 :29 AM Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 1 of 31 IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYL VANIA SAMUEL HOWELL, Plaintiff, CIVIL ACTION v. No. CITICORP TRUST BANK, De fendant. NOTICE OF REMOVAL Defendant Citicorp Trust Bank ("CTB"), through its undersigned counsel, Reed Smith LLP, hereby removes this action from the Court of Common Pleas of CUll1berland County, Pennsylvania, to the United States District Court for the Ivliddle District of Pennsylvania, and in support thereof states as follo\vs: 1. On or about August 24, 2006, Plaintiff Samuel Howell ("Plaintiff') commenced this action by filing a Complaint in District Court 09-302, Cumberland Count&'; Pennsylvania. A copy of the said District Justice Complaint is attached as Exhibit "A." 2. The District Justice Complaint sought recovery of $8,000, plus costs. See Ex. A. 3. On October 23, 2006, judgment in the amount of $8,000, plus costs, was entered in favor of Plaintiff by the District Justice. A copy of said Judgment is attached as Exhibit "B." On November 22, 2006, CTB timely appealed the District Justice's decision. A copy of said Notice of Appeal is attached as Exhibit "C." Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 2 of 31 4. On December 13, 2006, Plaintiff filed a Complaint in the Court of Common Pleas of Cumberland County, Pennsylvania, docketed at No. 06-6724. A true and correct copy of Plaintiff's Court of Common Pleas Complaint is attached hereto as Exhibit "D." 5. Plaintiff thereafter sent a copy of the Court ofComrnon Pleas Complaint to counsel for CTB by regular mail. Said copy of the Court of Common Pleas C0111plaint was received in the offices of counsel on December 18, 2006. 6. In Plaintiff's Court of Common Pleas Complaint, Plaintiff seeks recovery of approxinlately $250,000 in actual and punitive damages in connection with CTB' s alleged violation of federal law. Ex. D, ~~ 7, 57. In particular, Plaintiff alleges that CTB violated the Truth in Lending Act (Ex. D, ~ 7), the Fair Debt Collection Practices Act (Ex. D, '1 7) and the Federal Trade Commission Act (Ex. D, ,r 44). 7. Removal of this action is proper under 28 U.S.C. ~ 1441 (a), which allows for tl~,~ renloval of any civil action over which the district courts of r . the United States would have original jurisdiction. ~. The Notice of Removal is timely under 28 U.S.C. ~ 1446(b) because it is being filed within thirty (30) days of receipt "through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based." Defendant reserves all rights to challenge whether service of the Court of Common Pleas Complaint was proper. 9. This Court has original jurisdiction over this action because Plaintiff's claims are "founded on a claim or right arising under the... laws of the United States." See 28 U.S.C. ~ 1441 (b). More specifically, original jurisdiction Case 1 :07 -cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 3 of 31 is present in this action because Plaintiff's alleged claims under the Truth in Lending Act and Fair Debt Collection Practices Act (Ex. D, ~ 7), present a federal question. See 28 U.S.C. S 1331. 10. Alternatively, this Court has jurisdiction over this action since the parties are citizens of different states and the amount in controversy exceeds $75,000, exclusive of interest and costs. See 28 D.S.C. ~ 1332(a). More specifically, original jurisdiction is present in this action because: a. Plaintiff is an adult individual residing in Cumberland Chester County, Pennsylvania. See Ex. D, ~ 1. b. Defendant Citicorp Trust Bank is incorporated pursuant to the laws of the State of Delaware, and Citicorp Trust Bank's principal place of business is also in Delaware. 11. Plaintiff seeks in excess of $75,000 in darnages. Specifically, Plaintiff seeks to recover actual and punitive damages in excess of $250,000. Ex. D, ~ 57. r 12. Accordingly, had this action been brought in the United States District Court for the Middle District of Pennsylvania originally, this Court would have had original jurisdiction over the subject matter under 28 D.S.C. 9 1331 or 28 D.S.C. 9 1332(a). As a result, this action is properly removable to this Court pursuant to the provisions of 28 D.S.C. 9 1441. Case 1:07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 4 of 31 WHEREFORE, Defendant Citicorp Trust Bank respectfully requests that the civil action conunenced against it be removed to this Court for all future proceedings. Respectfully submi tted, Is ELIZABETH S. FENTON ElIzabeth S. Fenton Attorney ID P A 85441 efenton(cyreedsmi th. com REED SMITH LLP 2500 One Liberty Place 1650 Market Street Philadelphia, P A 19103 Telephone (215) 851-8100 FacsImile (215)851-1420 Attorneys for Defendant Citicorp Tnlst Bank Dated: January 12, 2007 . r ' Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 5 of 31 CERTIFICATE OF SERVICE I hereby certify that I caused to be served a true and conect copy of the foregoing Defendant CitiMortgage, Inc.'s Notice of Removal via first-class mail, postage prepaid, this 12th day of January, 2007, upon the following counsel of record: Sally J. \;Vinder 9974 Molly Pitcher Hwy. Shippensburg, P A 17257 Counsel for Plaintiff Is Jacqueline B. Penrod JacquelIne H. Penrod '" r . Case 1:07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 6 of 31 EXHIBIT A r ' Case 1 :07 -cv-00060~YK-JAS Document 1 Filt::d 01/12/2007 - P61g0 7 of 31 - COMMONWEALTH OF PENNSYL V AN fA COU.NTYOF:'~ I' '), Mall. 0181. NO.: 09-3-02 CIVIL ACTION, HEARING NOTICE !}AINTlFF: , NAME8nc1AODRESS IBOIfI:LL, SDUJ:L' "'1 20 SUD :LUll ~"'tLL8t, P& 1724~ L ~ V5. ' DEFENDANT: " NMI!! lllIlt AOOl"leas 'Cu:r:COJtP ,TRUST' BABjO , PO: BO~ 3.71453 , PrTTIBDRRB, 'PA 17250 L ..., MOJ NSmt: Holl. vtVtAJJ coaicx A<ldre,9t.: 'PO .BOX ,155 21 W BIG: BPRIBG AVE BDVnd.B" PA, T*'Pl'IOMl!:(717) 776-3187 1724:1 . -.J ". VXVtD C()JlXCJ: PO :80X 1'55 , 21. BIG Sn:IJIQ .AV'B JliMYXLLB, 1'~ 17,24'1 OOi;Ket No.: CV-O'OOOl08-06 Date Filed: 8/24/06 ' A civil complaint has been f,i1ed against you 10 the abo'le Captioned case. A. hearing has been set in this 'matter for: . .. Date: 9/25/06 ' Place: nIBDXCT canT 09'-3'-02 : ' PO Box,IS5 Time: 21 W BZG SPRERGAVE 10:00' All JlbdfVXLLB, PA 17241 '711-176-3187 NOTIC.E'TO DEFENDANT , ., . . , , " you Intend to enter a defense to this complaint, you should'so notify thiso'ffiee immediately at the above telepraone number. '.,' , , ' . , , . . '. . .. '. YOU 'Must'ApPEAI:I AT THE ,HEARING AND PRESENT YOUR DEFENSE. UNLESS YOU bo, JUDGMENT MAY BE E~TERED AGAIN$1T:VOU BY DEFAULt.. . '. .. . . . . . . ..'. ff you have a claim against the plaintiff which is within ma.gIsterial district jUd~ jurisdiction and which you: inte~d 10 ,assert at the hearing, you must file !t on a complaint form at this office at feast five days before ttle' date set for the hearing. ,PtJ'rs~ant to Pa.R.C.P'.D.J. No. 342(B)(2), no'claim by the defendant wnf be petrnitted in a supplementary action filed'for failure of judgment creditor to enter satisfaction. . . . . . ' . ,. NOTICE TO PLAINTIFF Pursuant to PaR.C.P.D.J. No. 318, 'you or your attomey will be notified if the defendant givesnotiee of hislher . intention to defend. . . - ; . . .. . . . . I . If you are disabk.ld and require a reasonab~ accammodatio'n'to gain access to 'th~ Magisier!~1I 'District Court and its .servIces, please contact the ,Magisterial District COurt' at the above address or teletlhone number. Weare unable tel provide transportation. '. . . . , !. ,. . ALL' CotJ:Bs PR:nr.rb AOPC 3088-05 \ I I PATE ~1ID: 8/24/06 9149:36 All Case 1 :07 -cv-00060- YK-JAS Document 1 COMMONwEALTH OF PENNSYLVANIA COUNTY OF: C!UD1QrT.AIm Filed 01/12/2007 Paap ~tQLn___ CIVIL COMPLAINT FILING COSTS POST AGE SERVICE COSTS CONSTABLE ED. AMOUNT $ l.;i. 2. () a $ $ $ DATE PAID / I I / I I / / f'LAI I'fTlFF: N4~~ and ADORESS ~~~ E: Jkwe1.L . r ;).0 $.fa.k LattA!.-. L ~V{' ILL fA I {;)..tf I -1 VS. DEFENDANT: NAMl: ana AOOf'lES$ rC . ~ ~I - ~',.j-t Cdrp . J r t-L:::,or ~~ r p..()~e.v~' 3714~~ 17;).50 -7k' {Plfts fA ~ ~ -1 DOCket. No.: CU-;b8-d . Date FIled: 01 ) . o L~ 0 ~ .. M:lQ. 0"". Nq.: 09-3-02 MOJ Ntlme: HOfL . VJ:VZAB COHZCK Addre~~: PO aoz 155 27 . BXg 8PRx.Q AVB IIIM'T.tLLB, PA 17241 ToloJphQn,: (717 > 776-3J.87 TOTAl. $ 12.'2..00 ~ / J-t{ / 0 ~ Pa.R.C.P.O,J. No. 206 sets forth those costs I'ecoverable by the prevailing party. TO THE DEFENDANT: The above named plalntlff(s) asks Judgment against you for $ 8': 000. tJ() together with costs upon the following claim {Civil fines must Includ~ citation of the stEl1ute or ordinance violated): SeL a-theJ..e.I . t. ~ m.d r;;: ~ verily that the facts set forth in this complaint are true and correct to the best of my kftowledge, information. and belief. This statement is made subject to the penalties of Section 4904 of the Crimes Gode (18 PA. C.S. ~ 4904) ralated to unswom falsification to authorities. ~~~Z~AQ,"" Plalnliff'$ Attorney: ~~ J. WI;JLr Telephon9: (.7/1) <"3~ q1f1~ IF YOU INTEND TO ENTER A DEFENSE TO THIS COMPLAINT. YOU SHOULD NOTIFY THIS OFFICE IMMEDIATELY AT THE ABOVE TELEPHONE NUMBER. YOU MUST APPEAR AT THE HEARING AND PRESENT YOUR DEFENSE. UNLESS YOU 00, JUDGMENT MAY BE ENTERED AGAINST YOU BY DEFAULT. ~71 tnJlJI1 p~ lj;:J Address; hlf~SJM..t7J Pf+ ( 7 If you have a cfaim agafnst the plaintiff which is within magisterial district judge jurisdiction and which you intend to assert at the hearing. you must file it on a complaint form at this office at least five days before the date setfQf the hearing. If you are disabled and requlr& a reasonable accommodation to gain acceu (0 tM Magisterltll Di!!&trlct Court and its Services, please contact the MagfstertaJ District Court at tf'1e above address or telephone number. We are umlble to provide transportatIon. AOFlC 30eA.OS Case 1:07-cv-00060-YK-JAS Document 1 -Rted-81/12/2007 Page 9 ()f 11 Plaintiff is a mortgage customer on account 3244483 with Citicorp Trust Bank, fsh which Account is covered by a disability payment plan covering disability of Plaintiff and qualifying him for disability insurance payment of his mortgage payments under certain terms and conditions. In the Summer of 2005 Plaintiffwas disabled and unable to perfonn his regular duties as an over the road driver for Roadway. Plaintiff applied for disability coverage ofms mortgage payments through the American Health and Life Insurance Company as directed by Defendant. During the period that the insurance company was processing the claim ro.ortgage payments became due and payable and interest on the aCCOWlt accrued. PJaintiffpaid 3 paym.ents in the arnoWlt of$1,549.96 each despite his disability to keep his mortgage from being foreclosed. plaintiff was told that when the insurance com.pany paid the mortgage payments (or the time of disability ~ Plaintiff would receive either a refund or could apply the payments and aocount them to future payments foJlowing tbe payments made through disability insurance. Plaintiff has further been charged accwnulated interest fur periods when his payments should have been timely paid by tbe insurance company thus causing him financial Joss in the amount of at least $5,250.00 additional interest. Defendant :bas failed and refused to retum the payments or adjust the interest to reflect the payments by the insurance company as timely made. Defendant has failed to acco,Pm ~e amount paid on payments subsequent to the disability period. Therefore, PIajJltfffjs (mtitl~ to ilte return of his payments in the amount 0($4,649.88" the addltipnal m~st Cfharged as accumulated on tbis account in the aPProx~ate alllOUl'lt of $5,150.001 plus ~osts all ofwhicb exceeds tbe District Justice limits of $8,000.00. Th~J\\ }llam#ff~grees to limit his claim to the jurisdictionallirnits, $8,000.00 plus CQ$. ' " f Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 10 of 31 EXHIBIT B r ' 09-3-02 PLAINTIFF: NAME and ADDRESS fiOWBLL, SAMUEL 20 SLATE LANE NEWVILLE, PA 17241 L Case 1 :07 -cv-00060- YK-JAS COMMONWEALTH OF PENNSYLVANIA COUNTY OF: CUMBERLARD Document ~ot'e~OoF2JtffihM~Jt~NS CIVIL CASE CRIPT Mag. Dist. No I MDJ Name Hon VIVIAN COllICK Address: PO BOX 155 27 W BIG SPRING AVE REWVILLE, PA Telephone (717) 776-3187 17241 --J vs. CITICORP TRUST BARK PO BOX 371453 PITTSBURGH, PA 15251 DEFENDANT: NAME and ADDRESS ~ITICORP TRUST BARK, PO BOX 371453 PITTSBURGH, PA 15251 L Docket No: CV-0000108-06 Date Filed: 8/24/06 I -.J THIS IS TO NOTIFY YOU THAT: FOR PLAINTIFF Judgment: (Date of Judgment) 1 10/23/06 ~ Judgment was entered for: (Name) HOWELL, S.AMUEL ~ Judgment was entered against: (Name) CITICORP TRUST BANX, in the amount of $ 8,122.00 o D D D Defendants are jointly and severally liable. Damages will be assessed on Date & Time Amount of Judgment $ 8,000.00 Judgment Costs $ 122.00 Interest on Judgment $ .00 Attorney Fees $ .00 Total $ 8,122.00 Post Judgment Credits $ Post Judgment Costs $ ------------ ------------ Certified Judgment Total $ This case dismissed without prejudice. Amount of Judgment Subject to Attachment/42 Pa.C.S. ~ 8127 $ D Portion of Judgment for physical damages arising out of residential lease $ e: I' . ANY PARTY HAS THE RIGHT TO APPEAL WITHIN 30 DAYS AFTER THE ENTRY OF JUDGMENT BY FILING A NOTICE OF APPEAL WITH THE PROTHONOTARYfCLERK OF THE COURT OF COMMON PLEAS, CIVIL DIVISION. YOU MUST INCLUDE A COPY OF THIS NOTICE OF JUDGMENTITRANSCRIPT FORM WITH YOUR NOTICE OF APPEAL. EXCEPT AS OTHERWISE PROVIDED IN THE RULES OF CIVIL PROCEDURE FOR MAGISTERIAL DISTRICT JUDGES, IF THE JUDGEMENT HOLDER ELECTS TO ENTER THE JUDGMENT IN THE COURT OF COMMON PLEAS, ALL FURTHER PROCESS MUST COME FROM THE COURT OF COMMON PLEAS AND NO FURTHER PROCESS MAYBE ISSUED BY THE MAGISTERIAL DISTRICT JUDGE. UNLESS THE JUDGMENT IS ENTERED IN THE COURT OF COMMON PLEAS, ANYONE INTERESTED IN THE JUDGMENT MAY FILE A REQUEST FOR ENTRY OF SATISFACTION WITH THE MAGISTERIAL DISTRICT JUDGE IF THE JUDGMENT DEBTOR PA YS IN FULL, SElTLES, OR OTHERWISE COMPLIES WITH THE JUDGMENT. / [1}--J3..-o,koate Date , Magisterial District Judge record of the proceedings containing the judgment. , Magisterial District Judge My commission expires first Monday of January, 2012 AOPC 315-06 SEAL DATE PRINTED: 10/23/06 10:47:00 AM Case 1 :07 -cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 12 of 31 EXHIBIT C r . r I I f ! i 1 ~ i I I Ii ICase 1 :07-cv-00060-YK-JAS ALTH OF PENNSYLVANIA COMMON PLEAS Document 1 Filed 01/12/2007 Page 13 of 31 NOTICE OF APPEAL FROM DISTRICT JUSTICE JUDGMENT COMMON PLEAS No. NOTICE OF APPEAL ~-~ ~: -: 2 '~1 C:I~~;.-~~~~ Notice is given that the appellant has filed in the above Court of Common Pleas an appeal from the judgment rendered by the District Justice on the date and in the case referenced below. NAME OF APPELLANT -::~J:t il::X)!~~ 'I:tl~lt I3fli)1.: NAME OF O.J. Vlll:t~rn (5oJJ.ic;1~ STATE -'i~)!~ ZIP CODE ~1::S.~?,5J. ADDRESS OF APPELLANT J? u. t].~ B~~~ ~3~tlr;f5~3 ,"l \ ~ IN THE CASE OF (Plainliff) ~~51:~.T~!L1B:L t~K.:;:~I:;J J vs ..., {<~.r'C~}Ii~l':~'Ll C) r~?~}:.~~LJ<C) i r1:'~:.:r~1 This block will be signed ONLY when this notation is required under Pa. If appel/ant was Claimant (see Pa. R.C.P.D.J. No. 1001(6) in action R.C.P.D.J. No. 10088. This Notice of Appeal. when received by the District Justice, will operate as a before a District Justice, A COMPLAINT MUST BE FILED within twenty SUPERSEDEAS to the judgment for possession in this case. (20) days after filing the NOTICE of APPEAL Signa/UffJ of Pro/honolary or Deputy PRAECIPE TO ENTER RULE TO FILE COMPLAINT AND RULE TO FILE (This section of form to be used ONLY when appellant was DEFENDANT (see PaR.C.P.D.J. No. 1001(7) in action before District Justice. IF NOT USED, detach from copy of notice of appeal to be served upon appellee. PRAECIPE: To Prothonotary Enter rule upon SaIITu.,::~1 }Icy:{"C 1 ]. appellee(s), to file a complaint in this appeal f Name of appellee(s) (Common Pleas No. G6..~67:::1 CT\7IL ) within twenty (20) days after service of rule or suffer entry of judgment of non pros. r . Signature of appellant or attorney or agent RULE: To (~<trc~.flJ91 I~[()'\~I'e 1 ~~ , appellee(s) Name of appel/ee(s) (1) You are notified that a rule is hereby entered upon you to file a complaint in this appeal within twenty (20) days after the date'of service of this rule upon you by personal service or by certified or registered mail. . (2) If you do not file a complaint within this time. a JUDGMENT OF NON PROS MAY BE ENTERED AGAINST YOU. (3) The date of_~ervice of this rule if service was by mail is the date of the mailing. Date: l\:rm 2l';:'" ~"", 200(3 i .~ /c. -\1. l~ f . J j f, If. ,_ ,. Signatureof Prothonotary or Deputy , /. ....,.r_ ; / YOU MUST INCLUDe A COPY OF THE NOTICE OF JUDGMENTITRANSCRIPT FORM WITH THIS NOTICE OF/APPEAL. AOPC 312-02 WHITE - COURT FILE TO BE FILED WITH PROTHONOTARY GREEN - COURT FILE YELLOW - APPELLANT'S COPY PINK - COPY TO BE SERVED ON APPELLEE GOLD - COpy TO BE SERVED ON DISTRICT JUSTICE Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 14 of 31 EXHIBIT D r . i ;; . Case 1 :07 -cv-00060- YK-JAS Document 1 Filed 01/12/2007 Page 15 of 31 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA SAMUEL HOWELL, : CIVIL ACTION Plaintiff v. : NO. 06-6724 CIVIL TERM CITICORP TRUST BANK Defendant : JURY TRIAL DEMANDED NOTICE 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 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 TillS PAPER TO YOUR LAWYER AT ONCE. II' YOU DO NOT HA VE.A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS 0FFfCE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MA Y OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Pennsylvania Bar Association Lawyer Referral Service 100 South Street POBox 186 Harrisburg PA 17108 Telephone: 1-800-692-7375 or (717) 238-6715 j'fiUEQ)pf FROM~" 111.1i --. ' .......,........ ~..E-~'*'~ '---- :m f ~l_ . -:~:!~ Case 1:07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 16 of 31 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA SAMUEL HOWELL, : CIVIL ACTION Plaintiff v. : NO. 06-6724 CIVIL TERM CITICORP TRUST BANK Defendant : JURY TRIAL DEMANDED COMPLAINT COMES NOW, the Plaintiff Samuel Howell, by and through his counsel, Sally 1. Winder, Esquire and does represent as follows: 1. Plaintiff Samuel Howell is a sui juris adult individual, residing at, and whose mailing address is 20 Slate Lane, Newville, Cumberland County, Pennsylvania 17241. 2. Defendant, Citicorp Trust Bank is a mortgage lender having a principal business address of P.O. Box 371453, Pittsburgh, Pennsylvania, 15251. 3. Plaintiff files this Complaint pursuant to a Notice of Appeal from District Justice civil judgment infu~or of Plaintiff and against Defendant. 4. On or about August 7,2002, Plaintiff Samuel Howell and his wife, Danna L. Howell, entered into a Mortgage, Note and Security Agreement with Travelers Bank and Trust, FSB, using their residence at 20 Slate Lane, Newville, Pennsylvania, as collateral for the loan. Closing occurred at the residence in Cumberland County, Pennsylvania. 5. As part of the loan agreement with Travelers Bank and Trust FSB, Plaintiff Samuel Howell entered into an optional addendum entitled S.M.A.R.T. Completion Plan Payment Waiver Program which provided in general terms for payment of the mortgage principal and interest payments and the waiver of the insurance premiums under certain tenus and conditions in the case of disability. A copy of the S.M.A.R.T. Completion Plan Payment Waiver Program addendum is marked Exhibit "A" attached hereto and incorporated herein by reference as to its complete and entire terms. 6. The Disclosure Statement, Note and Security Agreement, a copy ofwmch is marked Exhibit "B" attached hereto and incorporated herein by reference, states "Each Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 17 of 31 payment will be applied first to interest and fees, computed to the date of payment and the remainder to the balance due (which may include a PWP fee). Each portion of a payment applied to Principal shall be applied first to any recording, appraisal, title insurance and title examination fees, document preparation fees, settlement fees, and other closing fees, with the remainder applied to the PWP monthly fee, if any, and the Principal balance." 7. This Court has general jurisdiction in civil claims and specifically powers to enforce the federal statutes regulating Defendant pursuant to the Truth in Lending Act, 15 U.S.c. Section 1602 et seq, the Fair Debt Collection Practices Act, 15 U.S.c. Section 1692( e), and to secure equitable relief, including rescission, restitution, and disgorgement, against defendant for engaging in unfair or deceptive acts or practices in violation of the Truth in Lending Act and its implementing Regulation Z, 12 C.F.R. section 226. 8. Under the terms ofthe Disclosure Statement, Note and Security Agreement, (Exhibit "B" attached) "The Payment Waiver is not insurance and will not pay the outstanding account balance. Finance Charges accrue on the loan account during any Waiver Period." 9. Under the Payment Waiver Program, (Exhibit "A" attached), "After the BOlTower has been disabled or involuntarily Unemployed for the Waiting Period and after satisfactory proof of such disablement or involuntary unemployment has been received by the Lender, the Lender will waive the Scheduled Loan Payment and the PWP Monthly Fee due on the PWP Due Date following the 90th consecutive day of any disablement or involuntary unemployment". 10. Plaintiff wa~)njured October 14, 2004, while at work as an over the road driver for Roadway Exprds; Inc. and subsequently was determined disabled under the terms of the Payment Waiver Program. 11. Plaintiff remained disabled and did not return to work at his regular employment as an over the road driver until November 2005. 12. Plaintiff continued to make mortgage payments to Defendant during the 90 day disability waiting period, November 2004, December 2004, and January 2005, as required. 13. During the Waiting Period, Plaintiff submitted requested employer statements and physicians statements as well as borrower requests for waiver. These documents were all submitted to American Health and Life Insurance Company, 3001 Meacham Blvd, Suite 200, P.O. Box 2548, Fort Worth, TX 76113. The same address used by Citicorp Trust Bank Payment Waiver Processing Center. -l '. Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 18 of 31 14. Plaintiffwas entitled to payment waiver program benefits beginning with his February 2005 payment. 15. Defendant approved and paid a payment waiver in the amount of$1,549.96 for the month of July 2005 on July 15,2005. 16. Defendant approved and paid a payment waiver in the amount of$1,549.96 for the month of August 2005, on March 13, 2006. 17. Plaintiff paid the November 2004, December 2004, and January 2005, payments which became due and payable during his PWP disability 90 day waiting period. 18. Plaintiff paid his February 2005, mortgage payment which was subsequently also paid by waiver July 1,2005. 19. Plaintiff paid his March 2005, mortgage payment which was subsequently also paid by waiver July 1, 2005. 20. Plaintiff paid his April 2005, mortgage payment which was subsequently also paid by waiver July 1, 2005. 21. Plaintiff paid his May 2005, mortgage payment which was subsequently also paid by waiver July 1, 2005. 22. Defendant received double payments for the months of Febnlary, March, April, and May 2005. 23. Defendanf'areditor accepted and accounted all sums paid by Plaintiff as payment for interest, principal, late fees, and completion plan (PWP) fees in connection with his mortgage loan balance. 24. Defendant creditor was obligated under the Truth in Lending Act, and Regulation Z to treat the credit balance it received from the Payment Waiver approved and received from the American Health and Life Insurance Company, or Citifinancial, whichever entity actually performed the transaction, as credit to the balance on the consumer's account and refund any part of the remaining balance as set forth in Title 12 CFR Banks and Banking Section 226.21 Treatment of credit balances. 25. Plaintiff believes and therefore avers that Citicorp personnel were aware of the obligation to refund and credit as set forth in the banking regulations set forth above when Plaintiff spoke with Citicorp personnel in July 2005. 26. In July 2005, after receiving payment from the insurance company, Citicorp personnel offered to either refund Plaintiff's overpaid balance, or apply the Case 1:07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 19 of 31 overpayment as credit against payments, monthly, on account of his mortgage, as though the regular monthly payments were being made from escrowed funds. 27. During this July 2005, conversation, Plaintiff agreed to have Citicorp credit his account balance on a monthly basis thus crediting the account for August, September, October, November, 2005; Citicorp acknowledged that Plaintiff would have no payments due then until the December 2005, payment. 28. This agreement to hold Plaintiff's funds and account them on a monthly basis toward regular, timely payments was an agreement to create a de facto escrow account and credit the payments in the same manner as would be reflected on a regular amortization of the mortgage payments. 29. Contrary to the agreement, Defendant did not in fact create an escrow fund or account for these payments on a regular monthly basis. 30. Defendant never credited the account or refunded the money to Plaintiff. 31. Defendant has contrary to law, and in willful and flagrant disregard of the federal banking regulations failed to account for Plaintiffs funds in the amount of $6,199.84 or to refund this amount. 32. Monthly statements sent to Plaintiff from August 23, 2005 through November 22,2005, show payments due in the amount of $1 ,402.19, regular payments of principal and interest, and the completion plan fee of $147.77; there are no credits for funds of Plaintiff nor are there any statements of accruing interest or lateFcllafges claimed due and owing by Defendant. 33. Plaintiff resumed his regular monthly mortgage payments in December 2005, as he understood his obligation under the agreement with Defendant. 34. In December 2005, Defendant failed and refused to account the payment to principal and interest instead accounting the entire payment to interest charged by Defendant on the principal mortgage balance from July 12,2005 through December 24,2005, or additional interest of $4,530.74. 35. Defendant continued to account the entirety of all payments by Plaintiff as interest until May 20, 2006. . .\ Case 1 :07 -cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 20 of 31 36. Defendant, in violation of the loan instruments charged Plaintiff interest twice for the period of July 2005 through December 2005, never notifying Plaintiff of accrued interest or "Finance Charge" due under the loan instruments. 37. Defendant in further contravention of the law failed to account for $6,199.84 of Plaintiff's monies received by Defendant and has charged Defendant for interest during months when Defendant had agreed Plaintiff s monies would be credited as regular payments which would pay accumulated interest plus principal under the regular loan amortization. 38. Defendant has failed to properly account for principal and interest payments received from Plaintiff and properly credit the principal balance due on this mortgage loan which should be $115,932.42 as of September 12,2006. 39. Under the Truth in Lending Act and Regulation Z, Defendant was obligated to refund the $6,199.84 overpayment, or, at the very least, disclose the creation of escrow and the intention to credit Plaintiffs payments from the escrow it had agreed to create. 40. Defendant failed to refund Plaintiffs $6,199.84, or disclose any escrow or to create such escrow, to the detriment of the Borrower Plaintiff. 41. Defendant's course of conduct in refusing to credit Plaintiff s account balance and disclose any additional finance charges it claimed due are in violation of the Truth in Lending Act, and Regulation Z. 42. Defendarft's practice of accepting claims under the Payment Waiver Program, processing them after the payment due date, and using the American Health and Life Insurance Company as the disability insurance provider while claiming in the Note and Security Agreement that the payment waiver program is not insurance is fraudulent and designed to avoid the requirements of the Truth in Lending Disclosure Act and Regulation Z. 43. Defendant's course of conduct in dealing with Plaintiff's disability claim is false, misleading and fraudulent in that Defendant misrepresented that the loan payments comply with and are accurate under the loan instrument. 44. In truth and in fact, because of the practices described in paragraphs 35 through 39, above, Defendant's representations of loan payments do not comply with or are not accurate under the loan instrument. Therefore, the representations set forth in paragraph 41 and 42, above, are, false and misleading in violation of the Federal Trade Commission Act. . ;. Case 1 :07 -cv-00060- YK-JAS Document 1 Filed 01/12/2007 Page 21 of 31 45. In the course of conduct of offering and extending credit and throughout the duration of their loans, defendant has represented, expressly or by implication, that they will maintain and provide to borrowers accurate records of borrower accounts. 46. In truth and in fact, Defendant did not maintain and provide to Plaintiff accurate records of Plaintiff's account. Therefore, the representations set forth in paragraph 4-" above were and are, false and misleading. 47. Plaintiff has sustained damages by Defendant's failure to credit Plaintiffs account for payments made in the amount of$6, 199.84 plus additional interest charges in the amount of$4,530.74, or a total of $1 0,730.58. 48. Defendant's course of conduct has been obdurate, willful, and in careless and wanton disregard of the Defendant's obligations imposed by the Federal Trade Commission and banking regulations, Truth in Lending and Regulation Z all designed to fairly and accurately disclose to consumers the terms and obligations under financing contracts including credit transactions where equity in residential dwellings is used as collateral. 49. Plaintiff believes and therefore avers that Defendants actions expose it to Federal Trade Commission civil penalties in excess of $11 ,000.00. 50. Plaintiff further believes and therefore avers that there are other consumers similarly affected by these same practices by Defendant who would have similar claims. Therefore, Defendant would be subject to class action claims and charges by the Attorney General of violations for these predatory lending practicesg! all of which subject Defendant to civil penalties under Title 15 of the United States Code. 51. Plaintiff avers that Defendant knew in July 2005, that Plaintiff was entitled to a refund of the $6,199.84, and that Regulation Z does not provide for creating escrows and keeping overpayments, but rather requires a refund to the consumer. 52. Plaintiff believes and therefore avers that Defendant's actions are in violation of banking regulations which would subject it to civil penalties which under the federal banking laws and regulations are in the nature of punitive damages and therefore Plaintiff is entitled to punitive damages. 53. Plaintiff believes and therefore avers that in class actions asserted under the federal banking laws and regulations, Lenders can be required to adjust principal loan balances to reflect corrected balances and that such power is within the general equitable powers of this Court. Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 22 of 31 54. Further, Plaintiff believes and therefore avers that Defendant has intentionally and persistently overcharged Plaintiff and failed to apply Plaintiff's monies so that his credit rating has been adversely affected and he has been unable to determine a proper pay-off amount of this loan thus subjecting him to further predatory practices by Defendant. 55. Defendant is a large national banking organization with millions of dollars of assets far in excess of the Plaintiff's resources. 56. Plaintiff has incurred and will incur attorney fees as a result of Defendant's obdurate and willful misconduct and fraudulent and misleading course of conduct in this case. 57. If this matter were filed as a class action, Plaintiff would be entitled to an award of attorney fees as well as an award of at least $500,000.00 civil penalty for failure to make proper disclosure. Plaintiff should likewise be entitled to attorney fees and twice the amount of the finance charge in connection with the transaction, which on the face of the loan instrument is $113,465.48, thus entitling Plaintiff to an award of $226,930.96 as punitive damages. WHEREFORE, Plaintiff prays this Honorable Court enter judgment in favor of Plaintiff and against Defendant in the amount of $10,730.58, order that Defendant credit Plaintiff's principal loan balance $4,198.41 as of September 12, 2006, punitive damages in the amount of $226,930.96, plus attorney fees. r ' Respectfully submitted, zJt- Sally J. Attome for Plaintiff 9974 Molly Pitcher Hwy. Shippensburg, P A 17257 (717) 532-9476 . Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 23 of 31 VERIFICA nON I verify that the statements made in this pleading are true and correct to the best of my infonnation and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Date: ,oJ ~ I ~ - 0 ~ J-J!-~ SAMUEL HOWELL r -\ . Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 24 of 31 Disclosure Statement, Note and Security Agreefilent Addendum $.M.A.R.T. COMPLETION PLAN PAYMENT WAIVER PROGRAM (hereinafter referred to as "PWP") THIS IS AN OPTIONAL AGREEMENT BETWEEN THE LENDER AND THE BORROWER IT IS NOT AN INSURANCE CONTRACT PLEASE READ THIS ADDENDUM CAREFULLY. THERE ARE LIMITATIONS, EXCLUSIONS AND/OR REQUIRED PROCEDURES THAT AFFECT THE LOAN PAYMENTS THAT MAYBE WAIVED UNDER THIS ADDENDUM. EXCEPT AS OTHERWISE PROVIDED HEREIN, ALL TERMS AND CONDITIONS OF THE DISCLOSURE STATEMENT, NOTE AND SECURITY AGREEMENf FOR THE LOAN ACCOUNT REFERRED TO BELOW ARE INCORPORATED IN AND ARE APPLICABLE TO TInS ADDENDUM. Lender: Waiver 8eueids under this PWP extend solely to the covered Borrower(s) shown below in this schedule. (herein referred to as the "BORROWER"): Travelers Bank & Trust, fsh First Borrower Second Borrower 100 Commerce Drive Newark, DE 19713 SAMUEL E HOWELL No Coverage WAN INFORMATION PWP INFORMATION Loan Account No. PWP Monthly Fee: 147.77 PWP Due Day: Annual Fee: 1,773.24 Same as Scheduled Loan Payment Due Day 3244483 (See Section B - Payment of Monthly Fee) Date of Loan PWP Effective Date: PWP Scheduled Termination Date: 08/12/2017 Oa/07/2002 Oa/07/2002 or older BORROWER's Age 65, whkhever ic; E'JIrljer Scbeduled IA)an Maturity Date Disability Involuntary Unemployment 08/12/201.7 Principal Loan Amount ~~ ~~m~ 90 Days $ 143,428.24 Scheduled LOan Paymeut Amount and Due Day Waiver AmoWJt: Scheduled Loan Payment Scheduled Loan Payment See Disclosure Statement, Note and Security Agreement r Maximum Waiver [60] Scheduled Loan Payments 12 Scheduled Loan Payments Limit: per Condition per Occurrence Section A - ELIGmILITY (Check Correct Answers) 1. Have you in the past 5 years, been treated fur, or been diagnosed as having caJlCer; stroke; AIDS. AIDS Related Complex:, or any other immunological disorder (including testing positive for the IllY virus); hepatitis C; alcoholism or substance abuse; or any disease or disorder of the heart, liver, kidneys. or lungs? First Borrower ] Yes [ v{ No Second Borrower [N/A] Yes (N/A] No 2. The following question refers to tile bac~ neck or spine: Have you in the past 2 years received disability benefits, been hospitalized or missed 7 or more consecutive days of work as a result of disease. injury. sprain or strain to the back, neck or spine? First Borrower ] Yes [ Vi No Second Borrower [N/A] Yes [N/A] No 3. Are you unemployed or working for less than 30 hours per week? First Borrower ] Yes ( /'] No Second Borrower [N/A] Yes [N/AJ No ] Disagree [v1" Agree 4. First Borrower's Date of Birth: 03/05/1955 (correct birth date Second Borrower's Date of Birth; N/A (correct birth date [N/A] Disagree [N/A 1 Agree 5. Have you used any fonn of tobacco within the past 12 months? First Borrower r ~ Yes [ ] No Second Borrower [N/A] Yes F~h;kJl- n ~ h [N/A} No ~-t Case I :u ( -cv-UUUou- YK-JAS Document 1 Filed 01/12/2007 Page 25 of 31 . A.,~n:;=,<. .... ...,.:".,"es~~W....;t~l:--f$l!i~))l"F~~~~~~~~=-~""''''''~@~<;'>f~? Payment WaIVer Benefit: .mu::Ff)w~RRt;t~_~J8lWJtlU~UI.cwv6Jw......u~'tJnemplt'JYCW'luf"Wer.'walwiW.t'el!iew:anIS;iil'l'"~>'figs.liI.e~::"J . pr~o~~~l~..'...' ,.. . ., .~~==~__~~~~.iI1.~tf~~1ft ~R~~tfeI:~~-~WfD'a~ ", tf"'dlY1.il.lb~~~~~. If the BORROWER remains Disabled or Involuntarily Unemployed on subsequent PWP Due Dates. the Lender will waive such payments for each such due date. Such payment waivers are subject to the Disability Exclusions, Involuntary Unemployment Exclusions, the Maximum Waiver Limits, and the other provisions of this PWP. ~~~'''''''1IUU_'~~.W'''''"U~m., ~tY~I(it,im~i:~~~1mI~";:\1)U1d are subject to Lender's rights upon default under the underlying note and mortgage or deed of trust. For a final balloon payment (if any). the maximwn amount that will be waived is the amount of the prior month's Scheduled Loan Payment plus 5%. Except in the case of Loan Refinancing, Payment Waiver Benefits wiD not extend beyond the PWP Scheduled Termination Date (see Loan Rermancing below). Misstatement of Age: If the BORROWER's date of birth in Section A - ELIGmILITY is incorrect, the amount of the Scheduled Loan Payments waived wiD be adjusted to the amounts that the PWP Monthly Fee would have purchased at the correct age. If, according to the correct age, this PWP would not have been issued, then the Lender will not waive any payments, and a full refund of PWP Monthly Fees paid will be made to the BORROWER by check or by credit to the loan account at Lender's option. If PWP Monthly Fees are collected by the Lender beyond ebe date on which the PWP would have terminated according to the BORROWER's correct age, then the Lender will not waive any payments beyond the date of the corrected PWP Scheduled Termination Date and a refund of the PWP Monthly Fees will be paid or credited to the BORROWER fur any PWP Monthly Fees received by the Lender for periods beyond such date. Termination: The BORROWER may terminate this Addendum at any time by sending a signed written request to the Lender. If the BORROWER terminates this Addendum within 30 days of the PWP Effective Date, any PWP Monthly Fees that have been paid to the Lender will be credited to the BORROWER's Loan Account. The Lender may terminate this PWP by giving 60 days advance written notice to the BORROWER. unless loan payments are being waived at the time of the notice, in which case. termination will become effective when such waivers cease under the terms of this PWP. The PWP will terminate upon the earliest of the fullowing occurrences: (l) on lhe date when the sum of past due PWP fees equal or exceed 5 times the PWP Monthly Fee; (2) the PWP Scheduled Termination Date; (3) the date the BORROWER's loan account is paid off, renewed, refinanced (see Loan Refinancing below), or a default is declared by Lender; (4) death of the BORROWER; (5) the date the BORROWER reaches age 65; (6) the date of termination indicated in Lender's notice of termination; or (7) the date the Lender receives BORROWER's written request for terminatiOD. Loan ReimanciDg: This paragraph applies only in the event the Loan Account to which this PWP applies is refinanced by Lender (i.e., a new loan and account number is substituted for the Loan Account) at the time payments are being waived hereunder on the date of refinancing. This PWP shall terminate as of the date of the refinancing; however, if payments are being waived hereunder on the date of refinancing, such payments will continue to be waived in accordance with the limits and terms of this PWP. If at such time of refinancing, BORROWER chooses to purchase a new PWP (if offered by and available from Lender at the time of sllch refinancing) to cover the new loan, Section A - ELIGlBIUTY requirements I Ihrough 3 above will be waived. but any Condition or Occurrence under this PWP will be considered a Condition or Occurrence under the new PWP, and no new Waiver Benefits are or will be payable for any such Condition or Occurrence. Fees applicable to the new PWP will be subject to the pricing in effect at the time the new PWP is purchased. Lender A voidance: During the f"~ two years from the PWP Effective Date the Lender may void or rescind this PWP if the BORROWER fails to answer any question in Section A - ELIGmILITY or any answer thereto is incorrect. In the event of such avoidance or rescission a full refund of PWP Monthly Fees paid Oess the amount of any payments waived} will be made by check or credited to the BORROWER's Loan Account. at Lender's option. After the second anniversary of the PWP Effective Date. the Lender may not void, rescind, or otherwise challenge the validity of this PWP. Arbitration: Any claim. dispute, disagreement or legal proceeding involving this PWP is subject to any arbitration agreement applicable to the Loan to which this PWP is related. The BORROWER should read the arbitration agreement contained in the applicable Disclosure Statement. Note and Security Agreement, which terms and conditions are incorporated by reference herein. Section C - DISABaITY Imability Defined: A BORROWER is considered to be disabled if. because of bodily iIqury sustained by the BORROWER while this PWP is in effect, or illness or disease of the BORROWER which commences while this PWP is in effect, BORROWER is not engaged in any employment and is unable to perform the essential and customary duties of BORROWER:r occupation. After baving been Disabled fur 12 consecutive months, the BORROWER will continue to be considered Disabled only if BORROWER cannot engage in the duties of any occupation for which BORROWER is reasonably suited by reason of education, training or experience. Disability Exclusions: No waiver of payments will be made if the BORROWER is not under the care of a licensed physician (other than BORROWER or a member of BORROWER's immediate family); or for any period of Disability after the BORROWER reaches age 65; or fur Disability resulting from: (1) iDtentionally self-inflicted injuries, or (2) a medical condition which manifests itself to the BORROWER within 6 months preceding the PWP Effective Date and causes disability within the 6 montbs following the PWP Effective Date. A medical condition will be considered to have manifested itself when medical care. advice or treatment bas been given or there bave been symptoms that would cause an ordinarily prudent person to seek diagnosis, care or treatment. Condition: Condition means the cause(s) that resulted in the BORROWER qualifying for waiver due to being Disabled in accordance with this ~r.tinn Co. If the BORROWER has been diallDOSed with or treated for multinle iniuries. i11ness. or disease during such period of Disability for Case 1 :07 -cv-00060- YK-JAS Document 1 Filed 01/12/2007 Page 26 of 31 BORROWER's Filing Requirements for Waiver: Proof of Disability, including completion of I:lie Lender's required benefit request form, signed by the BORROWER's physician. must be sent to the Lender no later than 180 days after the Disability begins. After the initial proof of Disability has been furnished, subsequent benefit furms must be filed with the Lender every 30 days while Disability continues. Until the Lender makes a determination, the BORROWER is responsible for making the Scbeduled Loan Payments and the PWP Montbly Fee. The Lender has the right, at its expense, to have the BORROWER examined by a licensed physician as ofteD as reasonably necessary to adjudicate a claim. The BORROWER must notify the Lender within 30 days of BORROWER's return to work. Section D - INVOLUNTARY UNEMPLOYMENT Involuntary Unemployment Defined: Involuntary Unemployment means loss of compensation as the result of loss of employment due to individual or mass layoff; general strike; involuntary termination by the employer other than termination due ID willful or criminal misconduct; unionized labor dispute; or lockout. The BORROWER must also quality for unemployment benefits under state unemployment laws in the state in which BORROWER is employed and must be registered for work with a state unemployment office or a recognized employment agency within 30 days after the last day employed, and remain so registered for the waiver period. Occurrence: Occurrence means a continuous period of Involuntary Unemployment during which the BORROWER has qualified for a waiver of payments . Involuntary Unemployment Exclusions: No waiver of payments will be made for any period of Involuntary Unemployment of which the BORROWER was notified, either orally or in writing, within 90 days prior to the PWP Effective Date. No waiver of payments will be made for aIiy period of Involuntary Unemployment if the BORROWER betomes Involuntarily Unemployed (1) within 12 months from the PWP Effective Date and (2) bas not been employed for a minimum of 30 hours per week in a non-seasonal occopation for the last 12 consecutive months immediately preceding the period of Involuntary Unemployment. After an Occurrence, no waiver of payments will be made for any subsequent period of Involuntary Unemployment unless the BORROWER has returned to work for at least 12 consecutive months. For purposes of this exclusionary paragraph (when referring to "12 consecutive months..), employment interruptions of less than 30 days or scheduled breaks for members of the teaching profession who have been under annual contract for such 12 months will be disregarded. Additionally, no waiver of payments will be made for Involuntary Unemployment which commences after the BORROWER reaches age 65 or fur unemployment due to: (l) voluntary termination or forfeiture of employment, salary, wages or employment income; (2) retirement; (3) disability caused by sickness, illness, disease, accident, injury, or pregnancy; (4) seasonal occupations; (5) termination of employment as the result of willful or criminal misconduct; (6) scheduled termination of an employment contract; (7) scheduled suspension of employment for a specific time period (e.g. seasonal layoffs); or (8) imprisonment. If BORROWER is a sole proprietor or partner of a partnership, no waiver of payments will be made due to dissolution of, or temporary ceasing of business of, such sole proprietorship or partnership. Maximum Waiver Limit for Involuntary Unemployment: For an Occurrence of Involuntary Unemployment, the Lender will waive payments for a maximum of 11 months. BORROWER's Filing Requirements for Waiver: Proof of Involuntary Unemployment, including completion of the Lender's required benefit request furm, must be sent to tl1e:~er no later than 180 days after the Involuntary Unemployment begins. After the initial proof of Involumary Unemployment has been furnished, subsequent benefit request forms must be filed with the Lender every 30 days while Involuntary Unemployment continues. Until the Lender makes a determination, the BORROWER is responsible for making the Scheduled Loan Payments and the PWP Monthly Fee. The Lender may accept other proof of Involuntary Unemployment as it deems appropriate if the BORROWER is not at work due to a general strike, unionized labor dispute, or lockout. The BORROWER must notifY ilie Lender within 30 days of BORROWER's return to work. TIlE BORROWER UNDERSTANDS THAT THE PURCHASE OF THIS PWP IS COMPLETELY VOLUNTARY. IT IS NOT REQUIRED BY THE LENDER, AND HAS NOT BEEN MADE A CONDITION OF THE LOAN. NEITHER THE LENDER NOR ANY REPRESENTATIVE HAS IN ANY WAY INDICATED THAT TIllS PWP IS A PRECONDITION TO EXTENDING CREDIT. THE BORROWER FURTHER UNDERSTANDS THAT BORROWER CAN CANCEL THIS PWP AT ANY TIME BY MAKING WRIT'I'EN REQUEST TO THE LENDER. BY SIGNING BELOW, THE BORROWER REPRESENTS AND ACKNOWLEDGES THE FOLLOWING: (1) THAT THE BORROWER HAS COMPLETED SECTION A-ELIGmILITY ABOVE AND HAS PROVIDED TRUTHFUL ANSWERS TO EACH OF THE QUESTIONS THEREIN; (2) THAT IF QUESTION 1, 2 OR 3 IN SECTION A-ELIGIBILITY IS ANSWERED "YES" OR IS LEFI' BLANK, OR IF THE BORROWER IS CURRENTLY AGE 62 OR OLDER, BORROWER WILL NOT BE ELIGmLE FOR WAIVER BENEFITS UNDER THIS PWP UNLESS OTHERWISE SPECIFICALLY PROVIDED FOR AS PART OF A LOAN REFINANCING; AND (3) THAT BORROWER HAS READ AND UNDERSTANDS EACH OF THE TERMS AND CONDmONS OF THIS PWP ADDENDUM SET FORTH ABOVE. /1 P' p /1" ...--... ~ _ / Cd::>e 1. 07 -cv-00060- y K -JAS--Oocu-me-ncr ---File-cfCf1712/20o"i Disclosure Statement, N, . ~ and Security Agreeme Page 27 of 31 Borrower(s) (Name and Mailing address) "- , Lender (Name, address, city and state)" " Account No. SAMUEL E HOWELL TRAVELERS BANK & TRUST, 3244483 DANNA L HOWELL FSB Date of Loan 20 SLATE LANE 100 COMMERCE DRIVE NEWVILLE PA 17241- NEWARK DE 19713 08/07/2002. 'ANNUAL PERCENTAGE RATE '" 'FINANCE CHARGE """'" /Amount Financed /Total of Payments "'\ The cost of Borrower's credit as The dollar amount the credit will The amount of credit provided to The amount Borrower will have a yearly rate. cost Borrower. Borrower or on Borrower's behalf. paid after Borrower bas made all payments as scheduled. \.. 8.91 0/0..; \...$ 113,465.48 ~ \...$ 138,928.72 ..J ,$ 252,394.20 ~ Pavment Schedule: ~: If checked, Borrower is giving a security Number of Amount of When Parl:ents interest in: Payments Payments Are ue [!J Real Property 0 MobileIManufactured Home 180 $ 1,402.19 MONTHLY BEGINNING 09/12/2002 o Other: $ Late Charge: If a payment is more than 15 days late, Borrower will be charged 5.0 % of the $ amount in defuult. $ Prepaymem: If Borrower pays off early, Borrower will not be entitled to a refund of part of the finance charge; See the contract documents for any additional information about nonpayment, default. and ga may 0 will not have to pay a penalty. any required repayment in full before the scheduled date, and prepayment refunds and Demand Feature: None. penalties. Additional Information: PIUNCIPAL s 143,428.24 POINTS $ 4,177.52 BuYDOWN FEE S NONE DATE CHA1H1ES BEGIN 08/12/2002 Insurance Disclosure: H Borrower grants Lender a security interest as indicated in this document, insurance to protect the Lender's interest in the collateral may be required. If this loan fi secured by real property, or mobDelmanofactnred home, then fire, extended coverage, collision and/or comprehensive casualty insurance Is required naming Lender as loss payee, unill. the loan is fully paid. Additionally, if the property is located in a flood plain, flood insurance will be required. The amount of such insurance must be sufficient to satisfy the unpaid balance of the loan, or be equal to the value of the collateral, whichever is less. Such insurance may be provided througb an existing policy or a polley obtained independently and purchased by Borrower. Borrower may obtain such insurance from any insurer that is reasonably acceptable to Lender. If required insurance terminates before the loan is repaid, Borrower promises to obtain acceptable substitute insurance. If Borrower is in default. and Lender demands that Borrower immediately repay the loan in full, Borrower authorizes the insurer providing any required insurance that is financed by Lender in connection with this loan to terminate such policy or coverage, upon request of Lender, and directs that the insurer deliver !he premium refund, if any, to the Lender which may at its option apply to the unpaid balance of the loan or return it to Borrower. Any such application of premium refund will not affect the amount or due date of subsequent payments on the loan, but may reduce the number of such payments. Pavment Waiver Pro2ram ("PWP")): li , Borrower is not required to purdaas' Payment Waiver protection to obtain credit. Lender's decision to grant credit will not be and is not affected by Borrower's decision to purebase or refUse to purchase optional Payment Waiver Protection. Payment Waiver is an optional provision of Borrower's loan agreement and is described and defined in the attached Payment Waiver Program Addendum, whicb is incorporated herein by reference and governs Lender's agreement and Borrower's benefits. In return for a fee billed monthly and added to the scheduled monthly loan payment amount indicated above, and under certain conditions, the Lender will waive the scheduled monthly payment on Borrower's loan agreement and the PWP monthly fee for a period of time upon the occurrence of a Disability or Involuntary U ~- . ., . ,.;~.. -~~- . ......,. ~~ . . rrower sho u e terms and conditions, fDc:Iuding, without limitation, the monthly fee, tenns, eligibility, exclusions, termination date, waiting period and maxbnum waiver limit, contained in die attached PWP Addendum. Coverage will not be provided unless Borrower signs and agrees to pay the applicable monthly :tee in addition to the loan payment disclosed above. IfWe request Payment Waiver protection as described in the attached PWP Addend t h understood that coverage wiD. extend solely to the Borrower named on the PWP Addendum (the Covered "BORROWER"). PWP Monthly Fee: $ 147.77 'L 8 -7 - () J- ~er's SignalUre I 1 Date , WOnl/J1/1. J rYau~Pf. X-7-0a Borrower's Signature Date TERMS: In this Disclosure Statement. Note and Security Agreement, the word <<Borrower" rerers to the persons signing below as Borrower, whether one or more. If more than one borrower signs. each will be responsible, individually and together, for all promises made and for repaying the loan in full. The word "Lender" refers to the lender, whose name and address are shown above. PROMISE TO PAY: In return for a loan tbat Borrower bas received, Borrower promises to pay to the order of Lemler the Principal amount shown above, plus inmrest on the unpaid Principal balance from the Date Charges Begin shown above at the agreed rate of 08. 3784 % per anDUDl. Lender will compute interest on the unpaid Principal balance on a daily basis from the date charges begin until Borrower repays rile loan. If Borrower does not make sufficient or timely payments according to the payment schedule above, Borrower wiD incur greater interest charges on the loan. On the N/A month anniveISary of the Date of Loan shown above, the rate of interest shall decrease to N/A % per aDnmn on the unpaid Principal balanre until the balaDce is paid in full. Principal and interest shall be payable in consecutive monthly installments in the amOODts shown above, except that any appropriate adjustments will e)1i1~ -I- ~ B/' -"i CCise I.07-cv-uUUoU-YK-JAS Page 28 of 31 SAMUEL E HOWELL DANNA L HOWELL 3244483 08/07/2002 PREPAYMENT: Borrower may make a full or pd-.:r.;;1 prepayment of the unpaid Principal balance at a....,.time (check applicable box): D without penalty. 00 if this loan is secured primarily by a Mortgage or Deed of Trust on residential real property and Borrower prepays this loan in full during the first three (3) years from the Date of Loan, Borrower agrees to pay a prepayment fee, in addition to any accrued interest and cbarges. calculaterl on !be average balance of the principal obligation outstanding as of the last business day of each month for the prior six (6) months, or such lesser period as shall have elapsed from the Date of Loan as fullows: 1. If prepaid in full within one year of the Date oftoan, a fee of 5%. 2. If prepaid in full within two years of the Date of Loan, a fee of4%. 3. If prepaid in full within three years of the Date of Loan, a fee of 3 % . If prepayment occurs after three (3) years from the Date of Loan, there will be no prepayment fee. When Borrower makes a prepayment, Borrower will tell Lender in a letter that Borrower is doing so. Lender will use Borrower's prepayments to reduce the amounts of unpaid interest and charges and the amount of principal that Borrower owes under this Note. Partial prepayment will not affect the amount or due date of subsequent scheduled payments on the loan, unless Lender agrees in writing to any such delay or change. but may reduce the number of such payments. Borrower understands if the terms of this paragraph provide for a prepayment penalty, such terms do not apply to a renewal or refinancing of this loan by Lender, nor to the prepayment of this loan from the proceeds of any loan made in the future by Lender to Borrower. No prepayment charge will be collected if the loan is accelerated due 10 Lender's exercise of any due on sale clause in the Mortgage or Deed of Trost JJiJilj. Borrower acknowledges by initialing here that Borrower has read and undCl'Stands the provisions as set forth above for whether or not a prepayment fee, or penalty, may be imposed on Borrower's loan. Document 1 Filed 01/12/2007 SECURITY AGREEMENT: D A. If Uris box is checked, this loan is unsecured. o B. If this box is checked, to secure the payment and performance hereof, Borrower gives to Lender a security interest under the Unifunn Commercial Code in any property for which a description is completed below and all parts and equipment now or later added to the property and any proceeds of the property, all which will be called "Property". See below for additional terms applicable to this security interest. 1. Mobile/Manufactured Home: Make YearlModel Model No. Or Name Body Type Identification Number 2. Other Property: [!] C. If this box is checked, Borrower's Joan is secured by a Deed of Trust or Mortgage of even date on real property which requires Lender's written consent 10 a sale or transfer of the encumbered real property located at 20 SLATE LANE NEWVILLE PA ~ 7241 . See either the Deed of Trust or the Mortgage for terms applicable to Lender's interest in Borrower's real property ("Property"). OWNERSHIP OF PROPERTY: Borrower represents that the Property is owned by Borrower free and clear of all liens and encumbrances except those of which Borrower has informed Legder in writing. Prior to any default, Borrower may keep and use the Property at Borrower's own risk, subject to the provisions of the Unifonn ConutienJiar Code. If the Property includes a mobile or manufactured home, Borrower will. upon request, deliver the certificate of title, if any, to the bome to Lender. USE OF PROPERTY: Borrower will not sell, lease, encwnber, or otherwise dispose of the Property without Lender's prior written consent. Borrower will keep the Property at Borrower's address (as shown on page 1) unless Lender has granted permission in writing for the Property 10 be located elsewhere. The Property will be used oIlly in the state in which Borrower lives. Borrower will not use or permit the use of the Property fur hire or for illegal pwposes. TAXES AND FEES: Borrower will pay all taxes, assessments, and other fees payable on the Property, this Disclosure Statement. Note and Security Agreement, or the loan. If Borrower fails to pay such amountS, Lender may pay such amounts fur Borrower and the amounts paid by Lender will be added to the unpaid balance of the loan. REQUIRED INSURANCE: If Borrower fails to obtain or maintain any required insurance or fails to designate an agent through whom the insurance is to be oblained, Lender may purchase such required insurance for Borrower through an agent of Lender's choice, and the amounts paid by Lender will be added to the unpaid balance of the loan. In any such event, Borrower understands and acknowledges that (l) the insurance company may be affiliated with Lender, (2) Lender's employee(s) may be an agent for the insurance company. (3) such employee(s) is not acting as the agent, broker or fiduciary for Borrower on this (oan, but may be the agent of the insurance company, and (4) Lender or the insurance company may realize some benefit from the sale of that insurance. FINANCING STATEMENTS: Borrower will sign all financing statements, continuation statements, security interest filing statements. and similar documents with respect to the Property at Lender's request. LATE CHARGE: If a payment is more than 15 days late. Borrowers agree to pay a late charge of 5.0 % of the amount of the unpaid amount of the instillment in default. Lender may. at its option. waive any late charge or portion thereof without waiving its right to require a late charge with regard to any other late payment. RETURNED PAYMENT FEE: Lender may charge Borrower a fee of $ ~O. 00 , plus actual expenses incurred. for each cbeck, draft. order of withdrawal or like instrument or payment order given to Lender by Borrower or by Borrower's agent in connection with this loan that is not honored because of insufficient or uncoIlected funds or because DO such account exists. LOAN CHARGES: If a law that applies to this loan and that sets maximum loan charges. is finally interpreted SO tbat d:Ie interest or other loan charges collected or to be collected in col111eCbon with this loan exceed the pel'Dlitted limits, then (i) any such loan charge will be reduced by the amount necessary to reduce the charge to the permitted limit, and (ll) any sums already collected from Borrower that exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing Ihe principal owed under this loan or by making a direct payment to Borrower. If a refund reduces principal. the reduction will be treated as a partial prepayment without any prepayment charge. Cdse 1.07 -cv-00060- y K-JA-s--Document 1 Filed 01/1272007 Page 29 of 31 SAMUEL E HOWELL DANNA 1. HOWELL 3244483 QB/07/2002, If any insurance coverage is obtained at Lender's I___.~e. upon Borrower's default, Borrower hereby gi. _ Lender a power of attorney to cancel part or aU of that insurance and to apply any returned premiums to Borrower's unpaid balance. Lender may exercise its option to accelerate during any default by Borrower regardless of any prior forbearance, acceptance of lare payments or lare charges, oc waiver of any rights. If this loan is secuxW by a mobile home, at least 30 days before Lender takes action to accelerate the unpaid balance or to repossess or sell the mobile home as a result of Borrower's default. Lender will provide a written notice to Borrower concerning the default and Borrower's right to cure the default. Lender is not obligated to give Borrower more than two such notices in a 12-month period. EFFECTS OF DEFAULT: If Borrower defaults, Borrower will deliver the Property to Lender or, upon Lender's demand, assemble the Property and make it available to Lender at a reasonably convenient place. Lender may. without previous notice or demand and without legal process, peacefully enter any place where the Property is located and take possession of it. The Property may be sold with notice at a private or public sale at a location chosen by Lender. At such a sale, Lender may purchase the Property. The proceeds of the sale, minus the expenses of taking. storing and selling the Property, including attorney's tees, court costs and other collection expenses, and minus the cost of paying off and removing any superior liens or claims on the Property, will be credited to the unpaid balance of Borrower's loan. If the proceeds of the disposition are insufficient to payoff the entire balance. Borrower agrees to pay any remaining balance upon demand. If Borrower bas left other property in the repossessed Property, Lender may hold such property temporarily for Borrower without any responsibility or liability for the property. Notice of the time and place of a public sale or notice of the time after which a private sale will occur is reasonable if mailed to the Borrower's address at least five days before the sale. The notice may be mailed to Borrower's last address shown on l.ender's records. LAW THAT APPLIES: Federal law and Delaware law. as applicable, govern Ibis Disclosure Sta.tement, Note and Security Agreement. If any part is unenforceable, this will not make any other part unenfurceable. In no event will Borrower be required to pay interest or charges in excess of those permitted by law. OTHER RIGHTS: Lender may accept payments after maturity or after a default without waiving its rights with respect to any subsequent defimlt in payment. Borrower agrees that Lender may extend time for payment after maturity without notice. The terms of this agreement can be waived or changed only in a writing signed by Lender. Where the context requires, singular words may be read in the plural and plural words in the singular, and refurences to the masculine gender may be read to apply to the feminine gender. OTHER TERMS: Each Borrower agrees that Lender can change the repayment terms and release any Property securing the loan, or add parties to or release parties from this agreement without notice to any other Borrower and without releasing any other Borrower from his responsibilities. Lender does not have to notify Borrower before instiwting suit if the note is not paid, and Lender can sue any or all Borrowers upon the delimIt by any Borrower. Borrower, endorsers. sureties and g~tors, to the extent permitted by law, severally waive their right to require Lender to demand payment of amounts due" 10 give notice of amounts that have not been paid, to receive notice of any extensions of time to pay which Lender allows to any Borrower and to require Lender to show particular diligence in bringing suit against anyone responsible for repayment of this loan, and additionally. waive benefit 'of homestead and exemption laws now in force or later enacted. including stay of execution and condemnation. on any Property securing this loan and waive the benefit of valuation and appraisement. This Disclosure Statement, Note and Security Agreement shall be the joint and several obligation of aU makers, sureties, guarantors and endorsers and shall be binding upon them, their heirs. successors, legal representatives and assigns. Oral agreements or commitments to loan money. extend credit. or to forbear from enforcing repaymem of a debt, including promises to extend or renew such debts, are not enforceable. To protect Borrower and Lender from misunderstanding or disappointnient. any agreements Borrower and Lender reach covering such matters are contained in this writing, which is the complete and exclusive statement of the agreement between Borrower and Lender, except as Borrower and Lender may later agree in writing to modify it. If any pan of the Disclosure Statement.",Note and Security Agreement and. jf applicable. the Mortgage or Deed of Trust and accompanying Itemization of Amount Financed is unenfurceablej pus will not make any other part unenforceable. REFINANCING: Borrower has been advised by Lender that the overall cost of relinaJJcing an existing loan balance may be greater than the cost of keeping the existing loan and obtaining a second loan for any additional funds Borrower wishes to borrow. (Intentionally left blank.) Cd:Je 1.07-cv-00060-YK-JA:::; Document 1 Filed 01/1212007 Page 30 of 31 3244483 08/07/2002 SAMUEL E HOWELL DANNA L HOWELL NOTICE OF ARBITRATION PROVISION TIllS ARBITRATION PROVISION PROVIDES THAT ALL DISPUTES BETWEEN BORROWER AND LENDER. EXCEPT THOSE SPECIFIED BELOW, WILL BE RESOLVED BY MANDATORY, BINDING ARBITRATION. YOU THUS GIVE UP YOUR RIGHT TO GO TO COURT TO ASSERT OR DEFEND YOUR RIGHTS (EXCEPT FOR MATfERS THAT ARE EXCLUDED FROM ARBITRATION AS SPECIFIED BELOW). YOUR RIGHTS WILL BE DETERMINED BY A NEUTRAL ARBITRATOR AND NOT A JUDGE OR JURY. YOU ARE ENTITLED TO A FAIR HEARING, BUT THE ARBITRATION PROCEDURES ARE SIMPLER AND MORE LIMITED THAN RULES APPLICABLE IN COURT. In consideration of Lender :making the extension of credit described above and other good and valuable consideration, the receipt and sufficiency of which is acknowledged by both parties, You and We agree that either You or We have an absolute right to demand that any Claim be submitted to an arbitrator in accordance with this Arbitration Provision. If either You or We file a lawsuit, counterclaim, or other action in court, the other party bas the absolute right to demand arbitration following the filing of such action. Definitions for Arbitration PrOvisioD. As used in this Arbitration Provision (GProvision"), the fonowing definitions will apply: "You" or "Your" means any or all of Borrower(s) who execute this Disclosure Statement. Note and Security Agreement, and their heirs, survivors. assigns. and representatives. "We" or GUs" means the Lender under this Disclosure Statement, Note and Security Agreement, American Health & Life Insurance Company, Triton Insurance Company, and any assignee of Lender, together with aU of their respective corporate parents, subsidiaries. affiliates, predecessors, assignees. successors, employees, agents, directors. and officers (whether acting in their corporate or individual capacity). "Credit Transactionu means anyone or more past, present, or future exlensioIl, application, or inquiry of credit or forbearance of payment such as a loan, retail credit agreement, or otherwise from any of Us to You. "Claim" means any case. controversy. dispute, tort, disagreement, lawsuit. or claim now or hereafter existing between You and Us. A Claim includes, without limitation. anything related tD: , This Provision, its enforceability, and the arbitrability of any Claim pursuant to tbis Provision, including but not limited to the scope of this Provision and any derenses to enforcement of this Provision; Any Credit Transaction; . Any past, present, or future insurance, service, or other product that is offered or purchased in connection with a Credit Transaction; . Any documents or insttuments that contain information about any Credit Transaction, insurance, service. or product; Any act or omission by any of Us; Fraud or misrepresentation, including claims for failing to disclose material facts; Any federal or state statute or regulation, or any alleged violation thereof, including without limitation insurance, usury, and lending laws; . Any party's execution of this Provision and/or willingness to be bound by ilS terms and provisions; or Any dispute about closing, servicing, collecting, or enforcing a Credit Transaction. Agreement to Arbitrate Claims. Upon written request by either party that is submitted according to the applicable rules for arbitration, any Claim. except those specified below in this Provision. shall be resolved by binding arbitration in accordance with (i) the Federal Arbitration Act. (ii) the Financial Services Arbitration Rules and Procedures of JAMSlEndispute, Inc. (n Administrator"), and (Ui) this Provision, unless we both agree in writing to forgo arbitration. The terms of this Provision shall control any inconsistency between the rules of the Administrator and this Provision. You may oblain a copy of the arbitration rules by calling (800) 448-1660 or by accessing the Administrator's inlemet site at www.jamsadr.comlfioancialJules.asp. At Your request. We will obtain and provide to You copies of me Administrator's rules and other materials, including a fonn Demand for Arbitration. Any party to this Provision may bring an action, including a sUJIlllW'y or expedited proceeding. to compel arbitration of any Claim, and/or to stay the litigation of any Claim. pending arbitration. in any court having jurisdiction. Such action may be brought at any time. even if a Claim is part Qf af1a.wsuit, up untillhe entry of a final judgment. Pursuant to this Provision, You and We also agree to submit to final, binding arbitration not only aU Claims. but also any claim or dispule You or We have against (>> an persons or entities involved with any Credit Transaction or any other matter covered by this Disclosure Statement, Note and Security Agreement, (ii) all persons who signed or executed any document relating to any Credit Transaction or Claim. and (ill) all persons or entities wbo may be jointly or severally liable to either You Of any of Us regarding any Claim. Judgment. Judgment upon any arbitration award may be entered in any court baving jurisdiction. If timely requested by either party. the arbitrator shall provide a brief written statement of the reasons for any award. Claims Excluded from Arbitration, The following types of matters will nol be arbitrated. This means that neither one of us can require the olher to arbitrale: AJ.1y action to effect a foreclosure to transfer title to the property being foreclosed, or exercise of extra-judicial or self-help repossession under applicable law; or Any matter where all parties collectively (including multiple named parties) seek monetary relief in the aggregate of $15.000.00 or less in tolal relief, including but not limited to compensatory, statutory and punitive damages; restitution; disgorgement; coslS and fees (including attorneys' fees). or any Claims brought in a small claims court. In the event You attempt to assert any of Your Claims on behalf of a putative class of persons, in violation of other terms in this Provision, the value of Your Claims will. for purposes of this exclusion, be deemed to exceed $15,000.00. In the event that any party fails to specify the amount being sought for any relief. or any form or component of relief, the amount being sought shaD, for purposes of this exclusion. be deemed to exceed $15,000.00. However, should either party initiate arbitration., the other party, at its option, may seek: injunctive and monetary relief in arbitration. Participating in a lawsuit or seeking enfurcement of this section by a conn shaD not waive the right to arbitrate any other Claim. Additional Terms. Administration of Arbitration. Arbitration shall be administered by the Administrator, but if it is unable or unwilling to administer the arbitration. then the American Arbitration Association will administer any arbitration required under this Provision pursuant to its Commeroial Arbitration Rules and Expedited Procedures. The arbitrator shall make his or her decision in accorda.nre with the applicable law, and shall be empowered to award any damages or other relief provided for under the appHcable law. Place of Arbitration. The arbitration shall be conducted in the county of Your residence, unless all parties agree to another location. ADIlea1. Either You or We may appeal the arbitrator's award in accordance with the Optional Appeals Procedures of /he Administrator, and the award may be subject to judicial review on the grounds stated in 9 U.S.C. ~ 10. No Class ActiooslNo Joinder of Parties. You agree that any arbitration proceeding will only consider Your Claims. Claims by or on behalf of other borrowers will not be arbitrated in any proceeding that is considering Your Claims. Because You have agreed to arbitrate an Claims. You . l'.~ Cch~ 1.07-cv-00060-Yk-JA~ 0 t 1 acumen Filed 01/12/2007 Page 31 of 31 SAMUEL E HOWELL D~ L HOWELL 3244483 08/07/2002 Severability. If the arbitrator or any court detem __s that one or more terms of this Provision or th~ .ibirratioD rules are unenforceable, or would make this Provision unenforceable. only such terms(s) shall be deemed lDlenforceable and shall be deemed stricken from this Provision, but such determination shall not impair or affect the enfurceability of the other terms of this Provision or the arbitration rules. Special Acknowledgments. You uudentaDd aud acknowledge by signing Your name to d1is Provision that (i) a court and/or jury wiIl.w hear or decide any Claim governed by om Pro'rision, (0) file ftmding for Your Credit Transaction wDI come in whole or in part from sources outside th& state, wbich will constitute interstate commerce within the meaning of the United States Arbitration Act, 9 V.S.C. fU-9, (Iii) discovery in an arbitration proceeding cao be much more Jimited than in a court proceeding, (IV) righIs to appeal an arbitration award are very limited, and (v) the rigbts of the parties hereunder may not be exactly mutual in aD respects. READ THE ABOVE ARBITRATION PROVISION C LV. IT LIMITS C YOUR RIGHTS, INCLUDING YOUR RIGHT TO OBTAIN RESS nou (Seal) -Borrower (Seal) -Borrower The following notice applies only if this oox is checked. 0 NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED WITH THE PROCEEDS mtREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNfS PAID BY THE DEBTOR HEREUNDER. By signing below, Borrower agrees to the terms contained herein. aCknowledges receipt of a copy. of this Disclosure Statement. Note and Security Agreement and. if applicable, the Mo e or Deed of Trust and of the accompanying Itemization of Amount Financed. and authorizes the disbursements stated therein. '11' ~ .I c.-- ~ (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower TRAVELERS BANK & TRUST, FSB By: l'(\'\('\-(.) \ \e -~tc :-'Y-'C\(f((-l 'Kef} (Name and Title) COMPLETE FOR LOANS TO LOUISIANA RESIDENTS ONLY: Ne Yarietur For Identification with an Act of Mqrt.ge passed before me day of at , Louisiana Notary Public Notary Public of Parish , Louisiana SECURITY INTEREST OF NONOBLIGOR: Borrower only is personally liable for payment of the loan. NODobligor is liable and bound by all other terms, conditions, covenants. and agreements contained in this Disclosure Statement. Note and Security Agreement. including but not limited to the right and power of Lender to repossess and sell the Property securing this loan. in the event of defiluJt by Borrower in payment of this loan. (Seal) Signature Date Signature (Seal) Date Case 1 :07-cv-00060-YK-JAS Document 1 Filed 01/12/2007 Page 1 of 1 ~':oJS 44 (Rev 11/04) CIVIL COVER SHEET The .IS 44 civil cover sheet and the infonnatio!1 eontallled herein neither replace nor supplement the filing and service of pleadings or other papels as requ!r~d by law, except as provided by local rules of COllrt. This form, approved by the JudiCial Conference of the UnIted States m September 1974, is required for the use of the Clerk OfCOllrt for the purpose ofmitiating the civIl docket sheet (SEE INSTRUCTIONS ON rilE REVERSE Of THE FORM) I. (a) PLAINTIFFS Samuel Howell DEFENDANTS Citicorp Tmst Bank (b) County of ReSidence of First Listed Plaintiff Cumberland ([XCf7PT IN 11 S PL.<\INTIFF CASES) County of Residence of Fllst Listed Defendant (IN US PLAINTIFF CASES ONL Y) NOTE IN LAND CONDEMNA TION CASES, USF THI. LOCATION OF TilE LAND INVOLVED (c) Attorney's (Finn Name. ,\ddress. and Tekpholle NlIllluer) Attorneys (If Known) 01 u.s_ Government Plall1tiff ![I 3 Federal QuestJolI (lI S Go\'elllmelll Not a Pany) Elizabeth S. Fenton, Reed Smith LLP 1650 One Liberty Place, Philadelphia, PA 19103 (215) 851-8100 CITIZENSHIP OF PRINCIPAL P ARTIES(Place an "X" in One Box for PlaintIff (For DI\'ersity C~ses Only) and One Box hr Defendalll} PTF OEF PTF OEF CiliLell "fTllIS State g) I CJ I '"COlpOlale" III' Pnnciraj Place rJ ,I 04 of BlISlne;" In This Sl:tte Sally r Winder, Esquire 9974 Molly Pitcher Highway; Shippensburg, P A ] 7257 (717) 532-9476 II. BASIS OF JURISDICTION (Plilce "" "X in One Box Only) III. Cl 0 U~ Cion'nllnt"!11 Oefr-'ndDllf 1-' 4 DIversity (lndicale CltlZCIIShlp of Palties ill lIem III) Citizen of i\tlother State CJ 2 0 ? "h~Oqh)]",'HCd and Principlll Place 0 '\II of B!lsmes') In Al10tller SI<lle Citizen or SubJect of a 0 c 0 ; h)lTI~1l N;lli(~ll 0 6 C1 (, FUleinn Country IV. NATURE OF SUIT (Place ~n'X" III One Box Onlv) I CONTRACT TORTS Fa I{ VEITllRE/PENAL TY BANKRUPTCY OTHER STATUTES I '"'J IIOlnsurtlnce PERSONA I. IN,) liR Y PERSONAL INJURY 0 610 Agriculture o 422 Appeal 28 LSC 1 ~8 0 400 State Reapportiol1l1\ell! i"'J 120 ~Ianne 0 ; 10 "\II11lane 0 362 Personallnjnr, 0 6200thel Foud & Dlllg o ,In \l'lth<lli'''''' 0 -lIO Antirlll'>t L'J 1]0 ~Iiller ACI n ,liS .~\irpl"l1e [)roduct ~'Ied Malpractice II 62j D!lIg Relaled Selzutc 28 use 157 lJ 4JO Banks clOd Banking (] 1'10 Negotiaule InslllJlJlcnl t.labilit) (] 365 Personal Injury of Property 21 Lise S81 0 -J 50 Commerce 1-' 150 Recovery of O\'CIP8YIlll:1l1 I' ,20 A"",,II, ["Gel &. Ploducl Llabd!t)' 0 6:;0 Liquor L<1\vS PROPERTY RI(;IITS 'I '160 Deportalion & Enforcement uf Judglll~l1l Slandel 0 3GB Asbestos Persollal 0 640 R.R & Truck o 820 Copyrights (] 470 Racketeer Influenced alld 0 151 "licdicale Acl n :;:;0 Feder"J Employers' Injury Product 0 650 Airline Regs LJ 830 Patenl COOl'pt Organizations 0 152 Recovery ot Deja"ltl'd Liability Liability 0 6&OOccupationl1l o 3,10 Tradcmark t8l 480 Consumer Cred,t Student I.oalls II 340l\hmne PERSONAL PROPERTY Safely/Heallh n '190 Cable/Sat TV (hcl Veterans) 0 ~45 l'dnnne Product 0 370 Other Fraud 0 6900tlJel 0 810 Selective Service n 153 Recovery of OveqHlj'ment Liabilil} C1 371 Tmth in Lending LABOR SOCIAL SECURITY n SjO Securities/Commodities! of Veteran's BCllcfils 0 350 ~.Iotor VehiCle 0 380 Other Personal 0 710 Fa;1 Labor Sumda...ls o 361 HIA 1139jff) Exchange rJ 160 Stockholders' StillS 0 355 r-!olOr Vehicle Propelt)-. Damage Act rJ S6? Black 111I1~ (90,) 11 375 Cuslomer Challenge 0 190 Other C onlTac I PlUducl Liaudi!y 0 385 Propel1y Damage 0 720 Labor/Mgmr. Relations o 86, DIWCilllWW (4Iij(g)) I? USC 34tO 0 19j Conn'act Product Liauibly 0 360 Other Pel sOllal Product Liabdity 0 no Labor/Mgmt Reporting o 864 SSID Title XVI 0 390 Other Statuto,y Actions 0 196 Franchise InjUry & Disclosure Act o 865 RSI (405(g)) 0 39 J Agricultural Acts I REAL PROPERTI CIVIL RIGHTS PRISONER PETITIONS 0 740 Rmlway Labor Act FEDERAL TAX SUITS 0 392 Economic Stabilization Ael o 210 Land CondemnatIOn 0 44 J Votillg 0 510 Motions to Vacate 0 7900lher Labor Liligalioll o 870 Taxes (U S Plaintiff n 393 Environmental Malters o no Foreclosure 0 442 EmploYlJl1\t , Sentence 0 791 ElllpL Rct. Illc or Defendanl) 0 39,( Energy AllocallOn Act o 230 Rellt Lease & Eieclmel1! 0 443 Housing!; Habeas Corpus: Security Act o 871 IRS-Third Party (1 395 Freedom of Information o 240 T0I1s to Lal1d AcconIDlodaliolls 0 530 General 26 USC /609 Act o 245 T0l1 Product Liability 0 444 Wdfare 0 535 Death Penalty 0 900Appeal of Fee Determination o 290 All Olher Real PrOpel1) n 445 .Amcr \v/Oisahilirics- 0 540 Iv! andamus & Other Under Equal Aecess Employment 0 550 Civil Rights to Justice II 446 i\mcr w/Dlsabdiocs - 0 555 Proson ConditlOn 0 950 Constihltionality of Other State Statutes 0 440 Other Civil Rights V. ORIGIN o 1 Original Proeeedin (Place all "X" in One Box 01111') l&I 2 0 3 0 4 0 5 Transferred from 0 6 Removed from Remanded from Reinstated or another districl Multicltstllc1 St~te Court A lIate Court Reo ened s eci Litiflation C1~ lCJ.g:'t~i1g0~tute under which you are filmg (Do not cite jurisdictional statutes unless diversity) o 7 Appeal to District Judge from Magistrate Jud ment VI. CAUSE OF ACTION Brief description of cause: Truth in Lending Act o CHECK IF TillS IS A CLASS ACTION UNDER FRCP 23 DEMAND $ CHECK YES only iI- demanded in complaint' .flJRY DEMAND: n Yes 0 No VII. REQUESTED IN COMPLAINT: VIII. RELATED CASE(S) IF ANY (See instrucriolls) JUDGE DOCKET NUMBER DATE SIGNATURE OF A TIORNEY OF RECORD 01112/2007 ~lU ~. F~~ FOR OFFICE USE ONLY RECEIPT ff i\MOUNT APPL YING IFP JUDGE MAG. JUDGE (- .;) c. ( f~_~)