Preview
NO. 22-CCV-070963
DISCOVER BANK, § IN THE COUNTY COURT
Plaintiff §
§ AT LAWNO6
Vv.
§ FORT BEND COUNTY, TEXAS
ANNIE M ROUNTREE, §
Defendant(s) §
PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT
TO THE HONORABLE JUDGE OF SAID COURT:
Discover Bank, Plaintiff moves for Summary Judgment against Defendant(s), Annie M
Rountree, respectfully showing the Court as follows:
1 This Motion is based upon the pleadings on file and the affidavits attached hereto, which
are fully incorporated herein. Attached hereto as Exhibit “A” and fully incorporated herein
is the affidavit of a duly authorized agent of Plaintiff. The client affidavit includes as an
attachment a true and correct copy of the applicable supporting account documents for
account 637.
Summary judgment procedure is governed by Rule 166a of the Texas Rules of Civil
Procedure, which states that the judgment sought shall be rendered forthwith if the
summary judgment evidence shows that there is no genuine issue if material fact and the
moving party is entitled to judgment as a matter of law. TRCP Rule 166a (c); State v.
Carrillo, 885 S.W.2d 212, 214 (Tex App. — San Antonio 1994, no writ).
BREACH OF CONTRACT ANALYSIS: CREDIT CARD ACTIONS
In Winchek v. American Express, 232 S.W.3d 197 (Tex. App. - Houston [1] 2007, no pet.),
the court held that a valid contract was formed by evaluating the terms of the cardmember
agreement. The language in the agreement here and in Winchek is nearly identical in parts
relevant to the Court’s decision.
DISCOVER BANK V. REDA R GUIRGIS SR
4. Parties form a binding contract when the following elements are present: (1) offer, (2)
acceptance, (3) meeting of the minds, (4) mutual consent, and (5) execution and delivery
of the agreement. Wal-Mart Stores, Inc. v. Lopez, 93 S.W.3d 548, 555-56 (Tex. App. -
Houston [14th Dist.] 2002, no pet.); see also Sikander Ghia v. American Express, No. 14-
06-00653, 2007 Tex. App. LEXIS 8194 (Tex. App. — Houston [14" Dist.] Oct. 11, 2007,
no pet.). The agreement in the Winchek case and the agreement in the instant case contain
similar language that “use of [the credit card] means you accept this Agreement.” See
cardmember agreement; Winchek 232 S.W.3d at 204.
Use of a credit card and payments to an account demonstrate the existence of a contract.
Hay v. Citibank, No. 14-04-01131, 2006 Tex. App. LEXIS 8101, at *8 (Tex. App. -
Houston [14] Sept. 14, 2006, no pet.); see also Winchek, 232 S.W.3d at 197. The Winchek
court articulated the well-established elements for a claim of breach of contract: (1) the
existence of a valid contract; (2) performance or tendered performance by the plaintiff; (3)
breach of the contract by the defendant; (4) damages sustained as a result of the breach. Jd.
at 202 (citing Prime Products, Inc. v. S.S.I. Plastics, Inc., 97 S.W.3d 631, 636 (Tex. App.
2002, pet. denied).
“Delivery may be proved by acts or words showing that the parties intended the contract
to become effective. When the parties manifest an intent through their actions and words
that the contract become effective, delivery is shown. In other words, when Parties
manifest an intent through their actions and words that a contract become effective, manual
delivery is immaterial to contract validity.” Duran v. Citibank (South Dakota), N.A., No.
01-06-00636-CV, 2008 Tex. App. LEXIS 2060, at *10 (Tex. App. - Houston [1*] Mar. 20,
2008) (citations omitted).
DISCOVER BANK V. REDA R GUIRGIS SR
7. Regarding the final element of breach of contract claim (damages), the Winchek court
accordance significance to the facts that the card issuer sent monthly statements to the
defendant, that each set forth in detail all the debits and credits to the account, and that each
statement reflected the total amounts due and owing by the defendant. Thus, the court
concluded the card issuer “met its burden to show...damages sustained.” Winchek, 232
S.W.3d at 205.
In Sikander Ghia v. American Express Travel Related Services, Inc., 2007 Tex. App.
LEXIS 8194 (Tex. App. - Houston [14] Oct. 11 2007, no pet.), the appellate court
addressed the issue of proof necessary to show contract formation and breach of contract
damages in a credit card action. The Sikander court stated “American Express was not
required to outline each transaction comprising this balance,” when addressing the issue of
whether sufficient evidence existed regarding the balance owed. The court’s analysis was
as follows:
Appellant complains that [the creditor] did not present evidence
specifically outlining each transaction to prove it was properly billed
. . We recognize [the creditor] did not present . . . evidence [of]
every monthly statement since inception of the account; rather, it
attached statements for 2004 only... However, we conclude [the
creditor] was not required to outline each transaction outlining this
balance.
Sikander Ghia, 2007 Tex. App. LEXIS at *13.
The cardmember agreement in the Sikander case had provisions similar to the cardmember
agreement in this case requiring the cardholder to object in writing within sixty days after
the statement is issued to indicate any erroneous charges. The Sikander court determined
this provision of the agreement combined with the fact that the Defendant received monthly
statements as a sufficient basis to determine she was bound to pay the total amount due
even though every statement detailing every charge was not produced. Jd. at *14.
DISCOVER BANK V. REDA R GUIRGIS SR
10. Based on the foregoing, and the exhibits attached to this motion, there is no genuine issue
of material fact and Plaintiff is entitled to summary judgment as a matter of law on all
issues, all claims, all theories of damages, and all parties.
WHEREFORE, Discover Bank, Plaintiff, respectfully requests that this matter be set for
hearing and that after hearing the Court rule that there is “no genuine issue of material fact and
that the Plaintiff is entitled to judgment as a matter of law” and that Plaintiff be granted summary
judgment against Defendant(s), Annie M Rountree, for the following:
1 The principal damages amount claimed for in Plaintiff's Complaint of
$2,134.36 minus any payments received after filing this litigation, and
Post-judgment interest on said sums from the date of Judgment until paid at
5% which is the legal rate per annum under §304.004, TEX. FINANCE
CODE.
Costs of this proceeding in the amount of $445.96
Respectfully submitted,
ZWICKER & ASSOCIATES, P.C.
A Law Firm Engaged in Debt Collection
Attorneys for Plaintiff
14090 Southwest Freeway, Ste. 408
Sugar Land, TX 77478
ZATE_Litigation@ZwickerPC.com
(281) 494-0300
(281) 494-0213 (fax)
BY: Mreed
[ ] JOHNETTA LANG, ESQ.
State Bar Number 24036943
[ ] OLEN MANNING, ESQ.
State Bar Number 24118453
t ‘LISSA REED
State bar number 24046695
DISCOVER BANK V. REDA R GUIRGIS SR
CERTIFICATE OF SERVICE
I hereby certify that on the 19 day of January, 2023, this office served a true and correct copy of
the foregoing in accordance with the Rule 21a of the Texas Rules of Civil Procedure upon the
below listed interested parties via
[ ] First-Class Mail
M E-Service
[ ] Certified Mail
NATHAN J MILLIRON
HOUSTON, TX 77004
NATHAN.MILLIRON@MILLIRON.LAW
Mreed
[ ] JOHNETTA LANG, ESQ.
[ OLEN MANNING, ESQ.
MELISSA REED
DISCOVER BANK V. REDA R GUIRGIS SR
NO. 22-CCV-070963
DISCOVER BANK, IN THE COUNTY COURT
Plaintiff
AT LAW NO6
Vv.
FORT BEND COUNTY, TEXAS
ANNIE M ROUNTREE,
Defendant(s)
EXHIBIT LIST FOR
PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT
Exhibit “A” Affidavit of Duly Authorized Agent of Plaintiff
Includes True and Correct Copy of Applicable Supporting Account Documents
Exhibit “B” Non-Military Status Verification
Attachments Include:
Official Printout from the United States Department of Defense-Manpower Data Center that
Defendant is Not an Active Member of the Armed Forces Currently on Duty
DISCOVER BANK V. ANNIE M ROUNTREE
EXHIBIT “A”
Affidavit in Support of Judgment
DISCOVER BANK V. ANNIE M ROUNTREE
ACCOUNT NUMBER:
BALANCE: $2,134.36
CARDMEMBER (S): ANNIE M ROUNTREE
STATE OF OHIO
COUNTY OF FRANKLIN
Dariielle Timmerman, personally appeared before me, on this day and after being duly sworn, according to
law, and upon my oath and states as follows:
Iam a Litigation Support Coordinator for DISCOVER PRODUCTS INC., successor by merger to DB
SERVICING CORPORATION, the servicing affiliate of DISCOVER BANK, an FDIC insured Delaware
State Bank. DISCOVER PRODUCTS INC. is responsible for, among other things, maintaining account
records pertaining to Discover Card accounts and interacting with Discover Card account holders with regard
to payments owed on those accounts.
This affidavit is made on the basis of my personal knowledge and in support of the Plaintiff's suit on account
against the Cardmember(s).
In my capacity as Litigation Support Coordinator, I have knowledge regarding, and access to, records
regarding the Discover Card account of the above referenced Cardmember(s). DISCOVER PRODUCTS
INC. maintains these records in the ordinary course of its business, and the records are updated with
information on events (such as charges and payments on the account) by individuals with personal knowledge
of those events or by automated processes that track such events at or near the time that the events occur. The
same systems that record this information also generate periodic statements that are sent to Discover
Cardmember(s), and store copies of these periodic statements. In addition, these same record-keeping
systems contain information about which version of Discover Bank’s terms and conditions has been
communicated to an account holder and accepted by an account holder through the use of his or her Discover
Card after receipt of the terms and conditions. I have personally inspected the records pertaining to the
account of the Cardmember(s), including the last periodic statement sent to the Cardmember(s) by
DISCOVER PRODUCTS INC., to ascertain the applicable terms and conditions, the balance due on said
account and whether the Cardmember(s) have made payments on that balance.
According to the records maintained by DISCOVER PRODUCTS INC., during the period of time that
account statements were generated, such statements were either provided to the Cardmember(s)
electronically or mailed to the Cardmember(s) at the address maintained on file during that time period.
According to the records maintained by DISCOVER PRODUCTS INC., the last known address associated
with the Cardmember(s) is/are:
SUGAR LAND, TX 77479-0000
The account is in default because the Cardmember(s) have not paid the amounts due and owing to Discover
Bank on the account.
The business records maintained by DISCOVER PRODUCTS INC. and described above show that the
Cardmember(s)’ account with Discover Bank is governed by terms and conditions referred to as “terms level
28K.” A true and correct copy of these terms and conditions have been provided to DISCOVER PRODUCTS
INC.’s counsel in this case and is attached hereto as Exhibit A.
Exhibit B is a true and accurate copy of the last periodic statement sent by DISCOVER PRODUCTS INC. to
ZWI_ROUNTREE_1397565_1.5 V1.5
the Cardmember(s), retrieved from the record-keeping system described above.
Exhibit C is a true and accurate copy of information retrieved from DISCOVER PRODUCTS INC.’s
record-keeping system that shows the current balance due and owing on the Cardmember(s)’ account,
Exhibit C reflects the balance that includes any activity occurring on the account after the last statement
(Exhibit B).
DISCOVER PRODUCTS INC. has access to a system of records maintained by the United States Department
of Defense, which allows DISCOVER PRODUCTS INC. to ascertain whether a particular person is engaged in
active duty in any branch of the U.S. military. It is the regular practice of DISCOVER PRODUCTS INC. to
query this system with respect to any account holder prior to initiating a collection action against that account
holder. DISCOVER PRODUCTS INC. maintains records in the normal course of its business that indicate the
results of that query. Based on my review of the account records applicable to Cardmember(s), to the best of
my knowledge and belief the above referenced Cardmember(s) is not engaged in any of the military services of
the United States.
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.
SUBSCRIBED TO AND SWORN TO before me this }__ day of NY 2022.
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ZWI_ROUNTREE_1397565_1.5 Vi15
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DISC@VER CARDMEMBER AGREEMENT
Thank you for choosing Discover® card. This Agreement explains the current terms and conditions of your Account, The enclosed Pricing Schedule is part of this Agreement. Please read this Agreement, including
the Pricing Schedule, carefully. Keep themfor your records. Contact us if you have any questions.We have included a “Definitions” section for your reference on page 3.
ACCEPTANCE OF AGREEMENT
You accept this Agreement if you do not cancel your Account within 30 days after receiving a Card. You also accept this Agreement if you or an Authorized User use the
‘Account. You may, however, reject the “Arbitration of Disputes” section as explained in that section.
CHANGES TO YOUR AGREEMENT
The rates, fees and terms of this Agreement may change from time to time, We may add or delete any term to this Agreement. If required by law, we will giveyou advance
written notice of the change(s) and a rightto reject the change(s), We will not charge any fee or interest charge prohibited by law,
USING YOUR ACCOUNT
Permitted Uses You may use your Account for Purchases, Balance Transfers and Cash Advances, You may not use it for illegal transactions,
Authorized Users You may request additional Cards for Authorized Users to make transactions on your Account. You must notify us if you wish to cancel the authority of an Authorized User
to use your Account, You are responsible for all charges made by your Authorized Users.
Joint Accounts If your Account is a joint Account
each of you agrees to be liable individually and jointlyfor the entire amount owed on the Account; and
* any notice we mail to an address provided by either of you for the Account will serve as notice to both of you.
Checks IF we provide you with Checks, we will tell you whetherwe will treat the Check as a Purchase, Balance Transfer or Cash Advance. You may not use these Checks to pay any
‘amount you owe us.
Credit Authorizations We may not authorize a transaction for security or other reasons, We will not be liable to you if we decline to authorize a transaction or if anyone refuses your Card, Check
‘or Account number,
Credit Lines We will tell you what your Account credit line is. You must keep your Account for Cash Advances, We may increase or decrease your Account credit line or your
balance below your Account credit line, If you do not, we may request immediate Cash Advance credit line without notice, We may delay increasing your available
payment
of the amount
by which you exceed it. We may establish a lower credit line credit by the amount of any payment that we receive for up to 10 business days.
FEES (See your Pricing Schedule for Additional Fees)
Late Fee ‘We will not charge a Late Fee the first time you do not make the Minimum Payment were not charged a Late Fee during any of the prior six billing periods, Otherwise,
Due by the Payment Due Date. After that, if you do not pay the Minimum Payment the fee is $40. This fee will never exceed the Minimum Payment Due that was due
Due by the Payment Due Date, we will charge you a Late Fee. The fee is $29, if you immediately prior to the date on which the fee was assessed.
Returned Payment Fee if you make @ payment that is not honored by your financial institution, we will any of the prior six billing periods. Otherwise, the fee is $40. This fee will never
charge you a Returned Payment Fee even if the payment is honored after we re- exceed the Minimum Payment Due that was due immediately prior to the date on
submit it. The fee is $29 if you were not charged a Returned Payment Fee during ‘which the payment was returned to us
ANNUAL PERCENTAGE RATES (“APRs”) (See your Pricing Schedule for the APRs that apply to your Account)
Variable APRs Your Pricing Schedule may include variable APRs, These APRs are determined by will take effect on the first day of the billing period that begins during the same
adding the number of percentage points that we specify to the Prime Rate, Variable calendar month that the Prime Rate changes, An increase in the APR will increase
‘APRs will increase or decrease when the Prime Rate changes. The APR change your interest charges and may increase your Minimum Payment Due,
Penalty APR None
MAKING PAYMENTS
Payment Instructions You must pay in U.S, dollars. Please do not send cash, Sending cash is not ‘© We credit your payments in accordance with the terms contained on your
allowed. All checks must be drawn on funds on deposit in the U.S. billing statement.
© You must payus for all amounts due on your Account. This includes charges made * ff you mail your paymentto an address other than the address designated on your
by Authorized Users, billing statement, there may be a delay in processing and crediting the payment
© We may refuse to accept a payment in a foreign currency. If we do accept it, to your Account,
we will charge your Account our cost to convert
it to U.S. dollars. Ifa third party makes a payment on your Account and we return all or a partof
We can accept late payments, partial payments or payments marked such payment, then we may adjust your Account for any amount returned. We
“payment in full” or with any other restrictive endorsement without reserve the right to defend ourselves against any demand to return funds we
losing anyof our rights under this Agreement. have received, and may agree to a compromise of the demanded amountas part
of a settlement,
Minimum Payment Due You may pay the entire New Balance shown on your billing statement at any for any debt protection product that you enrolled in on or after 2/1/2015; Interest
time, Each billing period you must pay at least the Minimum Payment Due by the Charges; and Late Fees,
Payment Due Date shown on your billing statement, The Minimum Payment Due The Minimum Payment Due may also include amounts by which you exceed
will be any amount past due plus the greater of: your Account credit line. However, it will never exceed the New Balance, When
© §35; or we calculate the Minimum Payment Due, we may subtract from the New Balance
‘* 2% of the New Balance shown on your billing statement; or certain fees addedto your Account during the billing period,The Minimum Payment
# $20, plus any of the following charges as shown on your billing statement: fees Due is rounded up to the nearest dollar.
©2020 Discover Bank, Member FDIC 4
MAKING PAYMENTS
How We Apply Payments We apply payments and credits at our discretion, including in a manner most Each billing period, we will generally apply amounts you pay that exceed the
favorable or convenient for us. In all cases, we will apply payments and credits as Minimum Payment Due to balances with higher APRs before balances with lower
Tequired by applicable law. APRs as of the datewe credit your payment.
INTEREST CHARGES
How We Calculate Interest We calculate interest charges each billing period by first figuring the “daily ‘© We make other adjustments (including those adjustments requiredin the "Paying
Charges—Daily Balance balance” for each Transaction Category, Transaction Categories include standard Interest” section),
Method (including current Purchases, standard Cash Advances and different promotional balances, such as How We Figure Your Total Interest Charges
transactions)
Balance Transfers. © We multiply the daily balance far each Transaction Category by its daily periodic
How We Figure the Daily Balance for Each Transaction Category rate, We do this for each day in the billing period. This gives
us the interest charges
© We start with the beginning balance for each day. The beginning balance for for each Transaction Category.To geta daily petiodic rate, we divide the APR that
tthe first day of the billing period is your balance on the last day of your previous plies to the Transaction Categor 365,
billing period, © We add up all the daily interest charges, The sum is the total interest charge for
© We add any interest charges accrued on the previous day's daily balance and any the billing period,
new transactions and fees. We add any new transactions or fees as of the later of How We Include Fees
the Transaction Date or the first day of the billing period in which the transaction We add Balance Transfer Fees to the applicable Balance Transfer Transaction
or fee posted to your Account. Category. We add Cash Advance Fees to the applicable Cash Advance Transaction
© We subtract any new credits and payments, Category. We add all other fees to the standard Purchase Transaction Category.
Paying Interest When Interest Charges Begin New Purchases, New Purchases are Purchases that first appearon the next billing
‘We begin to impose interest charges on a transaction, fee or interest charge from statement. Interest will continue to accrue each day on Purchases that appeared on
the day we add it to the daily balance. We continue to impose interest charges previous billing statements until you pay the New Balance in full and will be billed
until you pay the total amount you owe us. You can avoid payii interest on in the next billing cycle,
Purchases as described below. However, you cannot avoid paying interest on How We Apply Payments May Impact Your Grace Perlod
Balance Transfers or Cash Advances. {f you do not pay your New Balance in full each month, then, depending on the
How to Avoid Paying Interest on Purchases ("Grace Period") balance to which we apply your payment, you may not get a grace period on
If you pay the New Balance on your current billing statement by the Payment Due new Purchases,
Date shown on that billing statement, we will not impose interest charges on
OTHER IMPORTANT INFORMATION
Default You are in default if: © you fail to comply with the terms of this Agreementor any Agreement with us or
© you file bankruptcy or another insolvency proceeding is filed by you or against
you; an Affiliate, including failing to make a required payment when due, exceeding
your Account credit line or using your Card or Account for an illegal transaction.
© we have a reasonable belief thatyou are unable or unwilling to repay your
obligations to us; Hyou are in default, we may declare the entire balance of your Account immediately
due and payable without notice,
you die or are legally declared incompetentor incapacitated;
Collection Costs Fwe use an attorney to collect your Account,
we may charge
you our legal costsas permitted
by law, These include reasonable attomeys’ fees, court
or other collection costs,
and fees and costs of any appeal,
Merchant Disputes IFyou have a dispute with a merchant, you may request a credit to your Account. If we resolve the dispute in your favor, we will issue a creditto your Account, You assign to us
your claim for the credited amount againstthe merchant andlor any third party. At our request, you agree to provide this assignment in writing.
‘Automatic Account You may set up automatic billing or store your Account information with an Affiliate, ‘Account information changes, which may include your biling address, you authorizeus
Information Updates merchant, wallet provider, or other third party ("Permitted Party”). If you do, you to provide this updated information to any such Permitted Party at our discretion, You
authorize us to share your Account information, which may indude your rewards must contact the Permitted Party directly or remove your credit card information from
account balance, with the Permitted Party, regarding
the use of your Account. If your ‘the Permitted Party website f you wish to stop automatic billing or Account updates,
Our Privacy Policy We send you our Privacy Policy when you open your Account and annually, » how we safeguard its confidentiality and security;
Contact us or visit Discover.com if you would like a copy, Please read it carefully. ‘© when it may be shared with others; and
Itsummarizes: ‘© how you can limit
our sharing of this information.
the personal information we collect;
Credit Reporting Agency ‘You authorize us to get information from credit reporting agencies and other sources normally report to credit reporting agencies each month. Ifyou believe that information
Information for servicing or review of your Account, collection and any other use permitted by law, we reported is inaccurate or incomplete, please write us at Discover, P.0. Box 30939,
including to consider you for other products and services,We may report the status and Salt Lake City, UT 84130-0939, Please include your name, address, home phone number
payment history of your Accountto credit reporting agencies and other creditors, We and Account number,
Our Communications You agree thatwe, our Affiliates, and agents, including service providers ("Authorized You agree that the Authorized Parties may contact you using an automatic dialer or
ith You Parties”) may contact you, including calls, text message
or email, about any currentor pre-recorded voice message. If you no longer wish to be contacted on your cell phone
future accounts or applications, with respect to all products you have with us at any by an automated dialer or pre-recorded voice message, you must provide us written
phone number
or email () you have provided to us, (i) from which you contacted us, notice cancelling your consent at this address; Discover Bank, P.0. Box 30937, Salt Lake
‘or (i) which
we obtained and believe we can reach you at, even if your phone provider City, UT 84130-0937, The written notice must include: your name, mailing address,
may charge you message and data rates for calls or texts, You agree that the Authorized the last four digits of your Account number and the specific cell phone number(s) for
Parties may record or monitor any calls between you and the Authorized Parties, You which you would like to cancel your consentto be contacted by an automated dialer
agreeto notifyus if you change or discontinue using any phone number you provide. or pre-recorded voice message.
Unauthorized Use You must notify us immediately if: * you believe someone is using your Account or a Card without your permission,
© your Card is lost or stolen,or
2
Cancellation of You may cancel your Account, You will remain responsible for any amount you ‘* We may cancel, suspend or not renew your Account at any time without notice,
Your Account owe us under this Agreement.
© Any joint Accountholder may cancel a joint Account. However, both of you will
remain responsible for paying all amounts owed.
OTHER IMPORTANT INFORMATION
Purchases and Cash Advances If you make a Purchase or Cash Advance in a foreign currency, we will convert depending on the country and currency in which the transaction is made, We
in Foreign Currencies it to U.S. dollars using a rate we choose, This rate will either be a government- use the rate in effect on the conversion date for the transaction. This rate may
mandated rate, a government-published rate or the interbank exchange rate, be different than the rate in effect on the Transaction Date for the transaction,
Governing Law ‘This Agreement is governed by applicable federal law and by Delaware law, However, in the event you default and we file a lawsuit to recover funds loaned to you, the
statute of imitations of the state where the lawsut is filed will apply, without regard to that state's conflicts of laws principles or its “borrowing statute,”
Severability Except as set forth in the “Arbitration” section, if any part of this Agreement is found to be invalid, the rest of it wil still remain in effect.
Enforcing this Agreement ‘We may delay enforcing or not enforce any of our rights under this Agreement without losing or waiving any of them,
Assignment of Account ‘We may sell, assign or transfer your Account
or any portion of it without notice to you. You may not sell, assign or transfer your Account without first obtaining our prior
written consent.
MILITARY BORROWERS
Statement of MAPR Federal law provides important protectionsto members of the Armed Forces and credit transaction; (3) any application fee charged (other than certain application
their dependents relating to extensions of consumer credit. In general, the cost of fees for specified credit transactions or accounts); and (4) any participation fee
consumer creditto a member of the Armed Forces and his or her dependent may charged (other than certain participation fees for a credit card account). If you
not exceed an Annual Percentage Rate of 36 percent. This rate must include, as would like more information about whether this section applies to you, please
applicable to the credit transaction or account: (1) the costs associated with credit contact us at 1-844-DFS-4MIL (1-844-337-4645) anytime 24/7, If calling outside
insurance premiums; (2) fees for ancillary products sold in connection with the the U.S. you can contact us at +1-801-451-3730,
Oral Disclosures Before agreeing to this Agreement, in order to hear important disclosures and payment information about this Agreement, please call 1-844-DFS-4MIL (1-844-337-4645)
anytime 24/7, If calling outside the U.S, you can contact us at +1-801-451-3730,
CONTACT US
Unless we tell you otherwise, you can notify us: » by phone at 1-800-347-3085 or « in writing to Discover, P.O. Box 30943, Saft Lake City, UT 84130-0943,
When writing, please include your name, address, home phone number and Account number. You must contact us within 15 days after changing your email address, mailing address or phone number,
DEFINITIONS
“Account” means your Discover card account, “Check” means any check we send to you to access your Account.
“Affiliate” means our parent corporations, subsidiaries and affiliates. “Pricing Schedule” means the document entitled, “Pricing Schedule’ which lists the APRs that
“Authorized User” means any person you authorize to use your Account or a Card, whether you apply to your Account and other important informatic
notify us or not, “Prime Rate” means the highest rate of interest listed as the U.S. Prime rate in the Money Rates
“Balance Transfer” means a balance transferred from another creditor to your Account, section of the online Wall Street Journal (www.ws).comm) on the last business day of the month,
“Card” means any one or more Discover cards issued to you or someone else with your authorization. “Purchase” means the use of your Accountto purchase or lease goods or services at
participating merchants.
“Cash Advance” means the use of your Account for:
“We,” “us” and “our referto Discover Bank, the issuer of your Card,
+ obtaining cash from participating automated teller machines, financial institutions or other
locations; and “You,” “your” or “yours” refer to you and any other person(s) who are also contractually liable
under this Agreement.
© online gambling, or to purchase lottery tickets, money orders, casino chips, foreign currency or
“Transaction Date” means the date shown on your billing statementfor a transaction or fee.
similar items.
ARBITRATION
Agreement to Arbitrate. In the event of a dispute between you This arbitration agreement does not apply if, on the date you relief. fa court decides that applicable law precludes enforcement of
and us arising out of or relating to this Account or the relationships submit your Application or on the date we seek to invoke any of this paragraphs limitations as to a particular Claim for relief,
resulting from this Account or any other dispute between you or this arbitration agreement, you are a member of the Armed then after all appeals from that decision have been exhausted, that
us, including, for example, a dispute based on a federal or state Forces ot a dependent of such a member covered by the federal Claim (and only that Claim) must be severed from the arbitration
and
Military Lending Act, ff you would like more information may be brought in court. Only a court, and not an arbitrator, shall
statute of local ordinance (“Claim”), either you or we may choose determine the validity, scope, and effect
of the Class Action Waiver,
to resolve the Claim by binding arbitration, as described below, about whether you are covered by the Military Lending Act,
instead of in court, Any Claim {except for a Claim challenging the please contact us at 1-844-DFS-4MIL (1-844-337-4645) or Your Right ta Go To Small Claims Court. We will not choose
if you are calling from outside the U.S, at +1-801-451-3730. to arbitrate any individual Claim you bring in small Claims court
validity or enforceability of this arbitration agreement, including
‘or your state’s equivalent court. However, if such a Claim is
the Class Action Waiver) may be resolved by binding arbitration CLASS ACTION WAIVER, ARBITRATION MUST BE ON AN
if either side requests it. THIS MEANS IF EITHER YOU OR WE INDIVIDUAL BASIS. THIS MEANS NEITHER YOU NOR WE MAY transferred, removed or appealed to a different court, we may
CHOOSE ARBITRATION, NEITHER PARTY WILL HAVE THE RIGHTTO JOIN OR CONSOLIDATE CLAIMS IN ARBITRATION BY OR then choose to arbitrate.
LITIGATE SUCH CLAIM IN COURT OR TO HAVE A JURY TRIAL. ALSO. AGAINST OTHER CARDMEMBERS, OR LITIGATE IN COURT OR Governing Law and Rules, This arbitration agreement is
DISCOVERY AND APPEAL RIGHTS ARE LIMITED IN ARBITRATION, ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR MEMBER governed by the Federal Arbitration Act ("FAA"). Arbitration must
OF A CLASS OR IN A PRIVATE ATTORNEY GENERAL CAPACITY, proceed only with the American Arbitration Association (“AAA”),
Even if all parties have opted to litigate a Claim in court, you or
The arbitrator may award injunctive relief only in favor of the The rules for the arbitration will be those in this arbitration
we may elect arbitration with respect to any Claim made by individual party seeking relief and only to the extent necessary
a New party or any new Claims later asserted in that lawsuit, agreement and the procedures of the AAA, but the rules in this
to provide relief warranted by that party's individual Claim. The arbitration agreement will be followed if there is disagreement
arbitrator may not award class, representative or public injunctive
3
ARBITRATION
between the agreement and the AAA's procedures, If the AAA's The arbitrator's decision will be final and binding except for any Other Beneficiaries of this Agreement. In addition to you and
procedures change after the Claim is filed, the procedures in effect review allowed by the FAA. However, if more than $100,000 was Us, the rights and duties described in this arbitration agreement
genuinely in dispute, then either you or we may choose to appeal to apply to: our Affiliates and our and their officers, directors and
when the Claim was filed will apply. employees; any third party co-defendant of a Claim subject to this
a new panel of three arbitrators. The appellate panel is completely
For a copy of the AAA's procedures, to file a Claim or for other arbitration agreement; and all joint Accountholdersand Authorized
free to accept or rejectthe entire original award or any part of it.
information, please contact the AAA at 1101 Laurel Oak Rd, The appeal must be filed with AAA not fater than 30 days after Users of your Account(s).
Voorhees, NJ 08043, www.adr.org (1-877-495-4185). the original award issues. The appealing party pays all appellate Survival of this Agreement. This arbitration agreement shall
If the AAA is completely un
Preview
NO. 22-CCV-070963 DISCOVER BANK, § IN THE COUNTY COURT Plaintiff § § AT LAWNO6 Vv. § FORT BEND COUNTY, TEXAS ANNIE M ROUNTREE, § Defendant(s) § PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT TO THE HONORABLE JUDGE OF SAID COURT: Discover Bank, Plaintiff moves for Summary Judgment against Defendant(s), Annie M Rountree, respectfully showing the Court as follows: 1 This Motion is based upon the pleadings on file and the affidavits attached hereto, which are fully incorporated herein. Attached hereto as Exhibit “A” and fully incorporated herein is the affidavit of a duly authorized agent of Plaintiff. The client affidavit includes as an attachment a true and correct copy of the applicable supporting account documents for account 637. Summary judgment procedure is governed by Rule 166a of the Texas Rules of Civil Procedure, which states that the judgment sought shall be rendered forthwith if the summary judgment evidence shows that there is no genuine issue if material fact and the moving party is entitled to judgment as a matter of law. TRCP Rule 166a (c); State v. Carrillo, 885 S.W.2d 212, 214 (Tex App. — San Antonio 1994, no writ). BREACH OF CONTRACT ANALYSIS: CREDIT CARD ACTIONS In Winchek v. American Express, 232 S.W.3d 197 (Tex. App. - Houston [1] 2007, no pet.), the court held that a valid contract was formed by evaluating the terms of the cardmember agreement. The language in the agreement here and in Winchek is nearly identical in parts relevant to the Court’s decision. DISCOVER BANK V. REDA R GUIRGIS SR 4. Parties form a binding contract when the following elements are present: (1) offer, (2) acceptance, (3) meeting of the minds, (4) mutual consent, and (5) execution and delivery of the agreement. Wal-Mart Stores, Inc. v. Lopez, 93 S.W.3d 548, 555-56 (Tex. App. - Houston [14th Dist.] 2002, no pet.); see also Sikander Ghia v. American Express, No. 14- 06-00653, 2007 Tex. App. LEXIS 8194 (Tex. App. — Houston [14" Dist.] Oct. 11, 2007, no pet.). The agreement in the Winchek case and the agreement in the instant case contain similar language that “use of [the credit card] means you accept this Agreement.” See cardmember agreement; Winchek 232 S.W.3d at 204. Use of a credit card and payments to an account demonstrate the existence of a contract. Hay v. Citibank, No. 14-04-01131, 2006 Tex. App. LEXIS 8101, at *8 (Tex. App. - Houston [14] Sept. 14, 2006, no pet.); see also Winchek, 232 S.W.3d at 197. The Winchek court articulated the well-established elements for a claim of breach of contract: (1) the existence of a valid contract; (2) performance or tendered performance by the plaintiff; (3) breach of the contract by the defendant; (4) damages sustained as a result of the breach. Jd. at 202 (citing Prime Products, Inc. v. S.S.I. Plastics, Inc., 97 S.W.3d 631, 636 (Tex. App. 2002, pet. denied). “Delivery may be proved by acts or words showing that the parties intended the contract to become effective. When the parties manifest an intent through their actions and words that the contract become effective, delivery is shown. In other words, when Parties manifest an intent through their actions and words that a contract become effective, manual delivery is immaterial to contract validity.” Duran v. Citibank (South Dakota), N.A., No. 01-06-00636-CV, 2008 Tex. App. LEXIS 2060, at *10 (Tex. App. - Houston [1*] Mar. 20, 2008) (citations omitted). DISCOVER BANK V. REDA R GUIRGIS SR 7. Regarding the final element of breach of contract claim (damages), the Winchek court accordance significance to the facts that the card issuer sent monthly statements to the defendant, that each set forth in detail all the debits and credits to the account, and that each statement reflected the total amounts due and owing by the defendant. Thus, the court concluded the card issuer “met its burden to show...damages sustained.” Winchek, 232 S.W.3d at 205. In Sikander Ghia v. American Express Travel Related Services, Inc., 2007 Tex. App. LEXIS 8194 (Tex. App. - Houston [14] Oct. 11 2007, no pet.), the appellate court addressed the issue of proof necessary to show contract formation and breach of contract damages in a credit card action. The Sikander court stated “American Express was not required to outline each transaction comprising this balance,” when addressing the issue of whether sufficient evidence existed regarding the balance owed. The court’s analysis was as follows: Appellant complains that [the creditor] did not present evidence specifically outlining each transaction to prove it was properly billed . . We recognize [the creditor] did not present . . . evidence [of] every monthly statement since inception of the account; rather, it attached statements for 2004 only... However, we conclude [the creditor] was not required to outline each transaction outlining this balance. Sikander Ghia, 2007 Tex. App. LEXIS at *13. The cardmember agreement in the Sikander case had provisions similar to the cardmember agreement in this case requiring the cardholder to object in writing within sixty days after the statement is issued to indicate any erroneous charges. The Sikander court determined this provision of the agreement combined with the fact that the Defendant received monthly statements as a sufficient basis to determine she was bound to pay the total amount due even though every statement detailing every charge was not produced. Jd. at *14. DISCOVER BANK V. REDA R GUIRGIS SR 10. Based on the foregoing, and the exhibits attached to this motion, there is no genuine issue of material fact and Plaintiff is entitled to summary judgment as a matter of law on all issues, all claims, all theories of damages, and all parties. WHEREFORE, Discover Bank, Plaintiff, respectfully requests that this matter be set for hearing and that after hearing the Court rule that there is “no genuine issue of material fact and that the Plaintiff is entitled to judgment as a matter of law” and that Plaintiff be granted summary judgment against Defendant(s), Annie M Rountree, for the following: 1 The principal damages amount claimed for in Plaintiff's Complaint of $2,134.36 minus any payments received after filing this litigation, and Post-judgment interest on said sums from the date of Judgment until paid at 5% which is the legal rate per annum under §304.004, TEX. FINANCE CODE. Costs of this proceeding in the amount of $445.96 Respectfully submitted, ZWICKER & ASSOCIATES, P.C. A Law Firm Engaged in Debt Collection Attorneys for Plaintiff 14090 Southwest Freeway, Ste. 408 Sugar Land, TX 77478 ZATE_Litigation@ZwickerPC.com (281) 494-0300 (281) 494-0213 (fax) BY: Mreed [ ] JOHNETTA LANG, ESQ. State Bar Number 24036943 [ ] OLEN MANNING, ESQ. State Bar Number 24118453 t ‘LISSA REED State bar number 24046695 DISCOVER BANK V. REDA R GUIRGIS SR CERTIFICATE OF SERVICE I hereby certify that on the 19 day of January, 2023, this office served a true and correct copy of the foregoing in accordance with the Rule 21a of the Texas Rules of Civil Procedure upon the below listed interested parties via [ ] First-Class Mail M E-Service [ ] Certified Mail NATHAN J MILLIRON HOUSTON, TX 77004 NATHAN.MILLIRON@MILLIRON.LAW Mreed [ ] JOHNETTA LANG, ESQ. [ OLEN MANNING, ESQ. MELISSA REED DISCOVER BANK V. REDA R GUIRGIS SR NO. 22-CCV-070963 DISCOVER BANK, IN THE COUNTY COURT Plaintiff AT LAW NO6 Vv. FORT BEND COUNTY, TEXAS ANNIE M ROUNTREE, Defendant(s) EXHIBIT LIST FOR PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT Exhibit “A” Affidavit of Duly Authorized Agent of Plaintiff Includes True and Correct Copy of Applicable Supporting Account Documents Exhibit “B” Non-Military Status Verification Attachments Include: Official Printout from the United States Department of Defense-Manpower Data Center that Defendant is Not an Active Member of the Armed Forces Currently on Duty DISCOVER BANK V. ANNIE M ROUNTREE EXHIBIT “A” Affidavit in Support of Judgment DISCOVER BANK V. ANNIE M ROUNTREE ACCOUNT NUMBER: BALANCE: $2,134.36 CARDMEMBER (S): ANNIE M ROUNTREE STATE OF OHIO COUNTY OF FRANKLIN Dariielle Timmerman, personally appeared before me, on this day and after being duly sworn, according to law, and upon my oath and states as follows: Iam a Litigation Support Coordinator for DISCOVER PRODUCTS INC., successor by merger to DB SERVICING CORPORATION, the servicing affiliate of DISCOVER BANK, an FDIC insured Delaware State Bank. DISCOVER PRODUCTS INC. is responsible for, among other things, maintaining account records pertaining to Discover Card accounts and interacting with Discover Card account holders with regard to payments owed on those accounts. This affidavit is made on the basis of my personal knowledge and in support of the Plaintiff's suit on account against the Cardmember(s). In my capacity as Litigation Support Coordinator, I have knowledge regarding, and access to, records regarding the Discover Card account of the above referenced Cardmember(s). DISCOVER PRODUCTS INC. maintains these records in the ordinary course of its business, and the records are updated with information on events (such as charges and payments on the account) by individuals with personal knowledge of those events or by automated processes that track such events at or near the time that the events occur. The same systems that record this information also generate periodic statements that are sent to Discover Cardmember(s), and store copies of these periodic statements. In addition, these same record-keeping systems contain information about which version of Discover Bank’s terms and conditions has been communicated to an account holder and accepted by an account holder through the use of his or her Discover Card after receipt of the terms and conditions. I have personally inspected the records pertaining to the account of the Cardmember(s), including the last periodic statement sent to the Cardmember(s) by DISCOVER PRODUCTS INC., to ascertain the applicable terms and conditions, the balance due on said account and whether the Cardmember(s) have made payments on that balance. According to the records maintained by DISCOVER PRODUCTS INC., during the period of time that account statements were generated, such statements were either provided to the Cardmember(s) electronically or mailed to the Cardmember(s) at the address maintained on file during that time period. According to the records maintained by DISCOVER PRODUCTS INC., the last known address associated with the Cardmember(s) is/are: SUGAR LAND, TX 77479-0000 The account is in default because the Cardmember(s) have not paid the amounts due and owing to Discover Bank on the account. The business records maintained by DISCOVER PRODUCTS INC. and described above show that the Cardmember(s)’ account with Discover Bank is governed by terms and conditions referred to as “terms level 28K.” A true and correct copy of these terms and conditions have been provided to DISCOVER PRODUCTS INC.’s counsel in this case and is attached hereto as Exhibit A. Exhibit B is a true and accurate copy of the last periodic statement sent by DISCOVER PRODUCTS INC. to ZWI_ROUNTREE_1397565_1.5 V1.5 the Cardmember(s), retrieved from the record-keeping system described above. Exhibit C is a true and accurate copy of information retrieved from DISCOVER PRODUCTS INC.’s record-keeping system that shows the current balance due and owing on the Cardmember(s)’ account, Exhibit C reflects the balance that includes any activity occurring on the account after the last statement (Exhibit B). DISCOVER PRODUCTS INC. has access to a system of records maintained by the United States Department of Defense, which allows DISCOVER PRODUCTS INC. to ascertain whether a particular person is engaged in active duty in any branch of the U.S. military. It is the regular practice of DISCOVER PRODUCTS INC. to query this system with respect to any account holder prior to initiating a collection action against that account holder. DISCOVER PRODUCTS INC. maintains records in the normal course of its business that indicate the results of that query. Based on my review of the account records applicable to Cardmember(s), to the best of my knowledge and belief the above referenced Cardmember(s) is not engaged in any of the military services of the United States. I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge. SUBSCRIBED TO AND SWORN TO before me this }__ day of NY 2022. st ite, = SX M, Abigail Patton 3 Notary Public, State of Ohio =* pe === My Commission Expires as)“gl Ww _ May 16, 2023 iw ZWI_ROUNTREE_1397565_1.5 Vi15 CM.TL28K.LIN.0620 DISC@VER CARDMEMBER AGREEMENT Thank you for choosing Discover® card. This Agreement explains the current terms and conditions of your Account, The enclosed Pricing Schedule is part of this Agreement. Please read this Agreement, including the Pricing Schedule, carefully. Keep themfor your records. Contact us if you have any questions.We have included a “Definitions” section for your reference on page 3. ACCEPTANCE OF AGREEMENT You accept this Agreement if you do not cancel your Account within 30 days after receiving a Card. You also accept this Agreement if you or an Authorized User use the ‘Account. You may, however, reject the “Arbitration of Disputes” section as explained in that section. CHANGES TO YOUR AGREEMENT The rates, fees and terms of this Agreement may change from time to time, We may add or delete any term to this Agreement. If required by law, we will giveyou advance written notice of the change(s) and a rightto reject the change(s), We will not charge any fee or interest charge prohibited by law, USING YOUR ACCOUNT Permitted Uses You may use your Account for Purchases, Balance Transfers and Cash Advances, You may not use it for illegal transactions, Authorized Users You may request additional Cards for Authorized Users to make transactions on your Account. You must notify us if you wish to cancel the authority of an Authorized User to use your Account, You are responsible for all charges made by your Authorized Users. Joint Accounts If your Account is a joint Account each of you agrees to be liable individually and jointlyfor the entire amount owed on the Account; and * any notice we mail to an address provided by either of you for the Account will serve as notice to both of you. Checks IF we provide you with Checks, we will tell you whetherwe will treat the Check as a Purchase, Balance Transfer or Cash Advance. You may not use these Checks to pay any ‘amount you owe us. Credit Authorizations We may not authorize a transaction for security or other reasons, We will not be liable to you if we decline to authorize a transaction or if anyone refuses your Card, Check ‘or Account number, Credit Lines We will tell you what your Account credit line is. You must keep your Account for Cash Advances, We may increase or decrease your Account credit line or your balance below your Account credit line, If you do not, we may request immediate Cash Advance credit line without notice, We may delay increasing your available payment of the amount by which you exceed it. We may establish a lower credit line credit by the amount of any payment that we receive for up to 10 business days. FEES (See your Pricing Schedule for Additional Fees) Late Fee ‘We will not charge a Late Fee the first time you do not make the Minimum Payment were not charged a Late Fee during any of the prior six billing periods, Otherwise, Due by the Payment Due Date. After that, if you do not pay the Minimum Payment the fee is $40. This fee will never exceed the Minimum Payment Due that was due Due by the Payment Due Date, we will charge you a Late Fee. The fee is $29, if you immediately prior to the date on which the fee was assessed. Returned Payment Fee if you make @ payment that is not honored by your financial institution, we will any of the prior six billing periods. Otherwise, the fee is $40. This fee will never charge you a Returned Payment Fee even if the payment is honored after we re- exceed the Minimum Payment Due that was due immediately prior to the date on submit it. The fee is $29 if you were not charged a Returned Payment Fee during ‘which the payment was returned to us ANNUAL PERCENTAGE RATES (“APRs”) (See your Pricing Schedule for the APRs that apply to your Account) Variable APRs Your Pricing Schedule may include variable APRs, These APRs are determined by will take effect on the first day of the billing period that begins during the same adding the number of percentage points that we specify to the Prime Rate, Variable calendar month that the Prime Rate changes, An increase in the APR will increase ‘APRs will increase or decrease when the Prime Rate changes. The APR change your interest charges and may increase your Minimum Payment Due, Penalty APR None MAKING PAYMENTS Payment Instructions You must pay in U.S, dollars. Please do not send cash, Sending cash is not ‘© We credit your payments in accordance with the terms contained on your allowed. All checks must be drawn on funds on deposit in the U.S. billing statement. © You must payus for all amounts due on your Account. This includes charges made * ff you mail your paymentto an address other than the address designated on your by Authorized Users, billing statement, there may be a delay in processing and crediting the payment © We may refuse to accept a payment in a foreign currency. If we do accept it, to your Account, we will charge your Account our cost to convert it to U.S. dollars. Ifa third party makes a payment on your Account and we return all or a partof We can accept late payments, partial payments or payments marked such payment, then we may adjust your Account for any amount returned. We “payment in full” or with any other restrictive endorsement without reserve the right to defend ourselves against any demand to return funds we losing anyof our rights under this Agreement. have received, and may agree to a compromise of the demanded amountas part of a settlement, Minimum Payment Due You may pay the entire New Balance shown on your billing statement at any for any debt protection product that you enrolled in on or after 2/1/2015; Interest time, Each billing period you must pay at least the Minimum Payment Due by the Charges; and Late Fees, Payment Due Date shown on your billing statement, The Minimum Payment Due The Minimum Payment Due may also include amounts by which you exceed will be any amount past due plus the greater of: your Account credit line. However, it will never exceed the New Balance, When © §35; or we calculate the Minimum Payment Due, we may subtract from the New Balance ‘* 2% of the New Balance shown on your billing statement; or certain fees addedto your Account during the billing period,The Minimum Payment # $20, plus any of the following charges as shown on your billing statement: fees Due is rounded up to the nearest dollar. ©2020 Discover Bank, Member FDIC 4 MAKING PAYMENTS How We Apply Payments We apply payments and credits at our discretion, including in a manner most Each billing period, we will generally apply amounts you pay that exceed the favorable or convenient for us. In all cases, we will apply payments and credits as Minimum Payment Due to balances with higher APRs before balances with lower Tequired by applicable law. APRs as of the datewe credit your payment. INTEREST CHARGES How We Calculate Interest We calculate interest charges each billing period by first figuring the “daily ‘© We make other adjustments (including those adjustments requiredin the "Paying Charges—Daily Balance balance” for each Transaction Category, Transaction Categories include standard Interest” section), Method (including current Purchases, standard Cash Advances and different promotional balances, such as How We Figure Your Total Interest Charges transactions) Balance Transfers. © We multiply the daily balance far each Transaction Category by its daily periodic How We Figure the Daily Balance for Each Transaction Category rate, We do this for each day in the billing period. This gives us the interest charges © We start with the beginning balance for each day. The beginning balance for for each Transaction Category.To geta daily petiodic rate, we divide the APR that tthe first day of the billing period is your balance on the last day of your previous plies to the Transaction Categor 365, billing period, © We add up all the daily interest charges, The sum is the total interest charge for © We add any interest charges accrued on the previous day's daily balance and any the billing period, new transactions and fees. We add any new transactions or fees as of the later of How We Include Fees the Transaction Date or the first day of the billing period in which the transaction We add Balance Transfer Fees to the applicable Balance Transfer Transaction or fee posted to your Account. Category. We add Cash Advance Fees to the applicable Cash Advance Transaction © We subtract any new credits and payments, Category. We add all other fees to the standard Purchase Transaction Category. Paying Interest When Interest Charges Begin New Purchases, New Purchases are Purchases that first appearon the next billing ‘We begin to impose interest charges on a transaction, fee or interest charge from statement. Interest will continue to accrue each day on Purchases that appeared on the day we add it to the daily balance. We continue to impose interest charges previous billing statements until you pay the New Balance in full and will be billed until you pay the total amount you owe us. You can avoid payii interest on in the next billing cycle, Purchases as described below. However, you cannot avoid paying interest on How We Apply Payments May Impact Your Grace Perlod Balance Transfers or Cash Advances. {f you do not pay your New Balance in full each month, then, depending on the How to Avoid Paying Interest on Purchases ("Grace Period") balance to which we apply your payment, you may not get a grace period on If you pay the New Balance on your current billing statement by the Payment Due new Purchases, Date shown on that billing statement, we will not impose interest charges on OTHER IMPORTANT INFORMATION Default You are in default if: © you fail to comply with the terms of this Agreementor any Agreement with us or © you file bankruptcy or another insolvency proceeding is filed by you or against you; an Affiliate, including failing to make a required payment when due, exceeding your Account credit line or using your Card or Account for an illegal transaction. © we have a reasonable belief thatyou are unable or unwilling to repay your obligations to us; Hyou are in default, we may declare the entire balance of your Account immediately due and payable without notice, you die or are legally declared incompetentor incapacitated; Collection Costs Fwe use an attorney to collect your Account, we may charge you our legal costsas permitted by law, These include reasonable attomeys’ fees, court or other collection costs, and fees and costs of any appeal, Merchant Disputes IFyou have a dispute with a merchant, you may request a credit to your Account. If we resolve the dispute in your favor, we will issue a creditto your Account, You assign to us your claim for the credited amount againstthe merchant andlor any third party. At our request, you agree to provide this assignment in writing. ‘Automatic Account You may set up automatic billing or store your Account information with an Affiliate, ‘Account information changes, which may include your biling address, you authorizeus Information Updates merchant, wallet provider, or other third party ("Permitted Party”). If you do, you to provide this updated information to any such Permitted Party at our discretion, You authorize us to share your Account information, which may indude your rewards must contact the Permitted Party directly or remove your credit card information from account balance, with the Permitted Party, regarding the use of your Account. If your ‘the Permitted Party website f you wish to stop automatic billing or Account updates, Our Privacy Policy We send you our Privacy Policy when you open your Account and annually, » how we safeguard its confidentiality and security; Contact us or visit Discover.com if you would like a copy, Please read it carefully. ‘© when it may be shared with others; and Itsummarizes: ‘© how you can limit our sharing of this information. the personal information we collect; Credit Reporting Agency ‘You authorize us to get information from credit reporting agencies and other sources normally report to credit reporting agencies each month. Ifyou believe that information Information for servicing or review of your Account, collection and any other use permitted by law, we reported is inaccurate or incomplete, please write us at Discover, P.0. Box 30939, including to consider you for other products and services,We may report the status and Salt Lake City, UT 84130-0939, Please include your name, address, home phone number payment history of your Accountto credit reporting agencies and other creditors, We and Account number, Our Communications You agree thatwe, our Affiliates, and agents, including service providers ("Authorized You agree that the Authorized Parties may contact you using an automatic dialer or ith You Parties”) may contact you, including calls, text message or email, about any currentor pre-recorded voice message. If you no longer wish to be contacted on your cell phone future accounts or applications, with respect to all products you have with us at any by an automated dialer or pre-recorded voice message, you must provide us written phone number or email () you have provided to us, (i) from which you contacted us, notice cancelling your consent at this address; Discover Bank, P.0. Box 30937, Salt Lake ‘or (i) which we obtained and believe we can reach you at, even if your phone provider City, UT 84130-0937, The written notice must include: your name, mailing address, may charge you message and data rates for calls or texts, You agree that the Authorized the last four digits of your Account number and the specific cell phone number(s) for Parties may record or monitor any calls between you and the Authorized Parties, You which you would like to cancel your consentto be contacted by an automated dialer agreeto notifyus if you change or discontinue using any phone number you provide. or pre-recorded voice message. Unauthorized Use You must notify us immediately if: * you believe someone is using your Account or a Card without your permission, © your Card is lost or stolen,or 2 Cancellation of You may cancel your Account, You will remain responsible for any amount you ‘* We may cancel, suspend or not renew your Account at any time without notice, Your Account owe us under this Agreement. © Any joint Accountholder may cancel a joint Account. However, both of you will remain responsible for paying all amounts owed. OTHER IMPORTANT INFORMATION Purchases and Cash Advances If you make a Purchase or Cash Advance in a foreign currency, we will convert depending on the country and currency in which the transaction is made, We in Foreign Currencies it to U.S. dollars using a rate we choose, This rate will either be a government- use the rate in effect on the conversion date for the transaction. This rate may mandated rate, a government-published rate or the interbank exchange rate, be different than the rate in effect on the Transaction Date for the transaction, Governing Law ‘This Agreement is governed by applicable federal law and by Delaware law, However, in the event you default and we file a lawsuit to recover funds loaned to you, the statute of imitations of the state where the lawsut is filed will apply, without regard to that state's conflicts of laws principles or its “borrowing statute,” Severability Except as set forth in the “Arbitration” section, if any part of this Agreement is found to be invalid, the rest of it wil still remain in effect. Enforcing this Agreement ‘We may delay enforcing or not enforce any of our rights under this Agreement without losing or waiving any of them, Assignment of Account ‘We may sell, assign or transfer your Account or any portion of it without notice to you. You may not sell, assign or transfer your Account without first obtaining our prior written consent. MILITARY BORROWERS Statement of MAPR Federal law provides important protectionsto members of the Armed Forces and credit transaction; (3) any application fee charged (other than certain application their dependents relating to extensions of consumer credit. In general, the cost of fees for specified credit transactions or accounts); and (4) any participation fee consumer creditto a member of the Armed Forces and his or her dependent may charged (other than certain participation fees for a credit card account). If you not exceed an Annual Percentage Rate of 36 percent. This rate must include, as would like more information about whether this section applies to you, please applicable to the credit transaction or account: (1) the costs associated with credit contact us at 1-844-DFS-4MIL (1-844-337-4645) anytime 24/7, If calling outside insurance premiums; (2) fees for ancillary products sold in connection with the the U.S. you can contact us at +1-801-451-3730, Oral Disclosures Before agreeing to this Agreement, in order to hear important disclosures and payment information about this Agreement, please call 1-844-DFS-4MIL (1-844-337-4645) anytime 24/7, If calling outside the U.S, you can contact us at +1-801-451-3730, CONTACT US Unless we tell you otherwise, you can notify us: » by phone at 1-800-347-3085 or « in writing to Discover, P.O. Box 30943, Saft Lake City, UT 84130-0943, When writing, please include your name, address, home phone number and Account number. You must contact us within 15 days after changing your email address, mailing address or phone number, DEFINITIONS “Account” means your Discover card account, “Check” means any check we send to you to access your Account. “Affiliate” means our parent corporations, subsidiaries and affiliates. “Pricing Schedule” means the document entitled, “Pricing Schedule’ which lists the APRs that “Authorized User” means any person you authorize to use your Account or a Card, whether you apply to your Account and other important informatic notify us or not, “Prime Rate” means the highest rate of interest listed as the U.S. Prime rate in the Money Rates “Balance Transfer” means a balance transferred from another creditor to your Account, section of the online Wall Street Journal (www.ws).comm) on the last business day of the month, “Card” means any one or more Discover cards issued to you or someone else with your authorization. “Purchase” means the use of your Accountto purchase or lease goods or services at participating merchants. “Cash Advance” means the use of your Account for: “We,” “us” and “our referto Discover Bank, the issuer of your Card, + obtaining cash from participating automated teller machines, financial institutions or other locations; and “You,” “your” or “yours” refer to you and any other person(s) who are also contractually liable under this Agreement. © online gambling, or to purchase lottery tickets, money orders, casino chips, foreign currency or “Transaction Date” means the date shown on your billing statementfor a transaction or fee. similar items. ARBITRATION Agreement to Arbitrate. In the event of a dispute between you This arbitration agreement does not apply if, on the date you relief. fa court decides that applicable law precludes enforcement of and us arising out of or relating to this Account or the relationships submit your Application or on the date we seek to invoke any of this paragraphs limitations as to a particular Claim for relief, resulting from this Account or any other dispute between you or this arbitration agreement, you are a member of the Armed then after all appeals from that decision have been exhausted, that us, including, for example, a dispute based on a federal or state Forces ot a dependent of such a member covered by the federal Claim (and only that Claim) must be severed from the arbitration and Military Lending Act, ff you would like more information may be brought in court. Only a court, and not an arbitrator, shall statute of local ordinance (“Claim”), either you or we may choose determine the validity, scope, and effect of the Class Action Waiver, to resolve the Claim by binding arbitration, as described below, about whether you are covered by the Military Lending Act, instead of in court, Any Claim {except for a Claim challenging the please contact us at 1-844-DFS-4MIL (1-844-337-4645) or Your Right ta Go To Small Claims Court. We will not choose if you are calling from outside the U.S, at +1-801-451-3730. to arbitrate any individual Claim you bring in small Claims court validity or enforceability of this arbitration agreement, including ‘or your state’s equivalent court. However, if such a Claim is the Class Action Waiver) may be resolved by binding arbitration CLASS ACTION WAIVER, ARBITRATION MUST BE ON AN if either side requests it. THIS MEANS IF EITHER YOU OR WE INDIVIDUAL BASIS. THIS MEANS NEITHER YOU NOR WE MAY transferred, removed or appealed to a different court, we may CHOOSE ARBITRATION, NEITHER PARTY WILL HAVE THE RIGHTTO JOIN OR CONSOLIDATE CLAIMS IN ARBITRATION BY OR then choose to arbitrate. LITIGATE SUCH CLAIM IN COURT OR TO HAVE A JURY TRIAL. ALSO. AGAINST OTHER CARDMEMBERS, OR LITIGATE IN COURT OR Governing Law and Rules, This arbitration agreement is DISCOVERY AND APPEAL RIGHTS ARE LIMITED IN ARBITRATION, ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR MEMBER governed by the Federal Arbitration Act ("FAA"). Arbitration must OF A CLASS OR IN A PRIVATE ATTORNEY GENERAL CAPACITY, proceed only with the American Arbitration Association (“AAA”), Even if all parties have opted to litigate a Claim in court, you or The arbitrator may award injunctive relief only in favor of the The rules for the arbitration will be those in this arbitration we may elect arbitration with respect to any Claim made by individual party seeking relief and only to the extent necessary a New party or any new Claims later asserted in that lawsuit, agreement and the procedures of the AAA, but the rules in this to provide relief warranted by that party's individual Claim. The arbitration agreement will be followed if there is disagreement arbitrator may not award class, representative or public injunctive 3 ARBITRATION between the agreement and the AAA's procedures, If the AAA's The arbitrator's decision will be final and binding except for any Other Beneficiaries of this Agreement. In addition to you and procedures change after the Claim is filed, the procedures in effect review allowed by the FAA. However, if more than $100,000 was Us, the rights and duties described in this arbitration agreement genuinely in dispute, then either you or we may choose to appeal to apply to: our Affiliates and our and their officers, directors and when the Claim was filed will apply. employees; any third party co-defendant of a Claim subject to this a new panel of three arbitrators. The appellate panel is completely For a copy of the AAA's procedures, to file a Claim or for other arbitration agreement; and all joint Accountholdersand Authorized free to accept or rejectthe entire original award or any part of it. information, please contact the AAA at 1101 Laurel Oak Rd, The appeal must be filed with AAA not fater than 30 days after Users of your Account(s). Voorhees, NJ 08043, www.adr.org (1-877-495-4185). the original award issues. The appealing party pays all appellate Survival of this Agreement. This arbitration agreement shall If the AAA is completely un