Terms and Conditions

IMPORTANT INFORMATION

Discover® Personal Loans are made by Discover Bank, Member FDIC.

As used below, “you” means the applicant; “we” or “our” or “us” means Discover Bank.

For customers invited to apply: This Offer is Not Transferable. This offer expires on the ‘Apply by’ date indicated on the front of the offer letter. After this date, the offer is subject to change without notice.

Application Information: Federal law requires that we obtain and record your name, street address, date of birth, and social security number in order to verify your identity. Your application is subject to our review and verification, which may be based on your employer, bank, and credit bureau information. You allow us to get information from consumer reporting agencies and other sources for servicing or review of your account, collection, and any other use permitted by law.

You must have a minimum individual or household annual income of $25,000, be over 18 years of age, and have a valid U.S. Social Security Number to be considered for a Discover Personal Loan.

Consent to electronic delivery required to apply: We require that applicants consent to receive important loan information, including legally required disclosures, electronically. Once the application process is completed, you will be able to choose to receive written communications electronically or in paper form.

You authorize your wireless carrier to use or disclose information about your account and your wireless device, if available, to Discover Bank or its service provider for the duration of your business relationship, solely to help them identify you or your wireless device and to prevent fraud. See our Privacy Policy to see how we treat your data.

You understand that we, after evaluating your application and checking your credit report, may decide not to offer credit to you.

Ohio Residents: The Ohio laws against discrimination require that all creditors make credit equally available to all creditworthy customers and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers compliance with this law.

Wisconsin Residents: If you are a married Wisconsin resident, your signature confirms that this loan obligation is being incurred in the interest of your marriage or family. No provision of any marital property agreement (i.e., premarital agreement), unilateral statement under Section 766.59 of the Wisconsin Statutes, or court decree under Section 766.70 of the Wisconsin Statutes adversely affects the interest of the Lender unless the Lender, prior to the time that the loan is approved, is furnished with a copy of the marital property agreement, a statement, or a decree or has actual knowledge of the adverse provision. If the loan for which you are applying is granted, you will notify us if you have a spouse who needs to receive notification that credit has been extended to you by furnishing your spouse's name and address to us at PO Box 30396, Salt Lake City, UT 84130-0396.

T&C.01.21.24

Loan Agreement

Please read this Loan Agreement carefully and save a copy for future reference.

This Discover Personal Loans Loan Agreement (“Loan Agreement”) is an agreement between you (“you” and “your”) and Discover Bank (“we,” “us,” “our,” and “Discover”) governing the terms of your personal loan account with us. Additional terms applicable to your personal loan account will be disclosed to you in the Truth in Lending Act Disclosure Statement that we provided to you before consummation of your loan.

This Loan Agreement contains an arbitration clause. Arbitration can have a substantial impact on your rights, including your right to a jury trial and your right to participate in a class action lawsuit. You may, however, opt out of the arbitration provision as explained in the "Arbitration of Disputes” section below.

Acceptance of Loan Terms: You accept and agree to all the terms of the loan and this Loan Agreement when you do any of the following:

(a)              Accept these terms online or provide your verbal agreement to. these terms by telephone; or
(b)              Use or receive the benefit of the loan proceeds; or
(c)              Endorse a check on the personal loan account governed by this Loan Agreement.

You may, however, opt out of the arbitration provision as explained in the “Arbitration of Disputes” section below. You promise that (1) all information that you provided to us when applying for your personal loan is true and accurate; (2) you have not misrepresented your identity, or described, presented, or portrayed yourself as a person other than yourself; and (3) you are solvent and are not contemplating any insolvency or bankruptcy proceeding, nor is any insolvency, bankruptcy, receivership, or assignment for the benefit of your creditors pending against you.

PROMISE TO PAY: You promise to pay to Discover Bank the amounts disbursed, up to the “Amount Financed” shown on the Truth in Lending Disclosure Statement, with interest at the Interest Rate provided to you at loan acceptance and all other amounts, including late fees, that may become due under this Loan Agreement.

You will make consecutive monthly payments in the amounts and in accordance with the due dates shown on the monthly billing statements that you will receive. You are obligated to pay the monthly payments by the due date even if you do not receive a billing statement. You may contact us to obtain your payment information by calling 1-877-256-2632 (or such other telephone number as we may subsequently provide to you).

DISBURSEMENT: We will disburse the loan proceeds to the payee(s) you have instructed us to pay. We rely on the accuracy, authenticity, and completeness of any account or other information you provide to us in disbursing your personal loan. However, we may attempt to verify the accounts to which the loan disbursement will be made, which may delay our disbursement. You promise that any information about the account, or any other disbursement information, that we will use to disburse funds from your personal loan is true, accurate, and correct.

If you have indicated that you intend to use the loan to consolidate debt, then we may require you to use all or a portion of the loan funds to pay down your outstanding loan balances with other creditors. If you pay off an existing Discover personal loan with proceeds from another personal loan from Discover, you authorize us to credit any overpayment or credit balance on the prior loan to the balance on your new loan. If we require or you request that the loan funds be used to pay your creditors directly, you may choose the creditors.

You cannot use the loan proceeds to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card, or to fund any illegal activity or other activity not permitted under this Loan Agreement.

It may take additional time for the creditor to post payments to your account. Please continue to make payments to those accounts to avoid late fees and additional finance charges on those accounts. You agree that any loan funds remaining after payment to your creditors will be disbursed in accordance with your application.

If you requested direct deposit of the loan funds, you agree to have the loan funds deposited directly into your checking/savings account, as indicated on the application.

If we reasonably conclude that we will not be able to disburse some or all the proceeds of your loan in accordance with your instructions, then at our sole discretion we may either issue a check to you or credit your loan account for the amount that we were unable to disburse as you requested.

We may require loan funds to be disbursed by issuing a check to be sent to your physical address. If we require loan funds to be disbursed by check, we encourage you to deposit the check immediately upon receipt. Interest will begin to accrue on your loan from the check is issued.

Funds are considered disbursed when they are transmitted from Discover.

INTEREST CALCULATION AND ACCRUAL: Interest will begin to accrue on each disbursement on the date it is disbursed and will continue to accrue on the unpaid balance of all disbursements until you have repaid in full. We calculate interest each day by dividing the Interest Rate by the number of days in the year and multiplying that by the unpaid principal amount at the end of the day.

PREPAYMENT: You may prepay all or part of your loan at any time without penalty.

Iowa and Kansas Residents: NOTICE TO CONSUMER: You may prepay the unpaid balance at any time without penalty and may be entitled to receive a refund of unearned finance charges in accordance with law.

PAYMENTS: We apply payments and credits at our discretion, including in a manner most favorable or convenient for us. Each Payment you make will generally be applied first to accrued and unpaid interest, then to any principal up to the New Amount Due and any Amount Past Due, then to any unpaid Late Fees. Any remaining amount will generally be applied to your unpaid principal balance.

Your final payment may be larger or smaller, depending on your payment history. If payments are received late, your final payment may be larger, or if payments are received early, your final payment may be smaller.

If you request that your due date to be on a particular day of the month, or delay in notifying us of your acceptance of your loan, it may increase or decrease the length of your first billing period. A longer first billing period will result in increased finance charges and will increase the amount of your monthly payments. A shorter first billing period will result in decreased finance charges and a smaller final payment.

You agree to pay all outstanding amounts with your final payment. If necessary, we may increase the number of payments so that the amount of the final payment will not be more than twice the amount of the previous required payment. Any portion of the outstanding principal balance that remains unpaid after maturity will bear interest.

Sending cash payments is not allowed. Cash is easily lost or stolen. If you send cash, we may refuse to accept it. You must pay in US Dollars and all checks must be drawn on funds on deposit in the US.

If a third party makes a payment on your account and we return all or a part of such payment, then we may adjust your account for any amount returned. We reserve the right to defend ourselves against any demand to return funds we have received and may agree to a compromise of the demanded amount as part of a settlement.

All mailed payments must be sent to us at the payment address specified on your monthly billing statement.

While late payments, partial payments, or checks and money orders marked “payment in full,” or with any other restrictive endorsement, will breach this Loan Agreement, we may accept such payments without losing any of our rights under this Loan Agreement.

LATE FEE: Unless otherwise prohibited by applicable law, if we do not receive the new amount due and any amounts past due by the due date, you may be assessed a Late Fee of $39.

DEFAULT—ACCELERATION—COLLECTION COSTS: You will be in default if (1) we do not receive the full amount of any monthly payment by its due date, (2) you die or are declared legally incompetent or incapacitated, (3) you file bankruptcy or another insolvency proceeding is filed by you or against you, (4) we reasonably believe that you are unable or unwilling to pay, (5) you commit fraud or make a material misrepresentation regarding your loan application or your personal loan account, or (6) you fail to abide by the terms of this Loan Agreement. If you are in default, we can demand upon notice the immediate payment of your outstanding Loan balance. If you are in default on this loan and Discover Bank owns your loan at the time of default, you may also be considered to be in default on any other Discover card account or loan account you have with us. We can delay enforcing or not enforce any of our rights under this Loan Agreement without losing or waiving them. If we waive any right on one occasion that waiver will not operate as a waiver as to any other occasion.

If we refer the collection of your loan to an attorney or employ an attorney to represent us with regard to recovery of money that you owe us, we may charge you reasonable attorneys’ fees and court or other collection costs as permitted by law and as actually incurred by us, including fees and cost in connection with any appeal.

New Hampshire Residents: If we refer this Loan Agreement to an attorney for collection, you agree to pay our reasonable attorneys’ fees. However, if you prevail in (1) any action, suit, or proceeding we bring, or (2) an action brought by you in connection with this Loan Agreement, or (3) if you successfully assert a partial defense or setoff, recoupment, or counterclaim to an action brought by us, the court may withhold from us the entire amount or such portion of the attorneys’ fees as the court considers equitable.

Wisconsin Residents: Notwithstanding the provisions of the paragraph marked “DEFAULT— ACCELERATION—COLLECTION COSTS” to the contrary, you will be in default hereunder only (1) if the interval between scheduled payments is 2 months or less, and you permit to be outstanding an amount exceeding one full payment that has remained unpaid for more than 10 days after its scheduled due date or deferred due date, or you fail to pay the first payment or the last payment within 40 days of its scheduled due date, or (2) if the interval between scheduled payments is more than 2 months, you permit to be outstanding all or any part of one scheduled payment that has remained unpaid for more than 60 days after its scheduled due date or deferred due date. You will also be in default if you fail to observe any other provision of this Loan Agreement, the breach of which materially impairs your ability to pay the amounts due under this Loan Agreement.

PRIVACY: Our Privacy Policy includes a summary of the personal information we collect, when we may share it with others, how we safeguard the confidentiality and security of information, and the steps you may take to limit our sharing of such information with others.

COLLECTING INFORMATION ABOUT YOU: Federal law requires financial institutions to obtain, verify, and record information that identifies each person who opens an account or applies for a loan, including your name, address, date of birth, and other information that allows us to verify your identity. We may also ask you to provide identifying documents.

OUR COMMUNICATION WITH YOU: You agree that Discover, our Affiliates, and agents, including service providers (“Authorized Parties”) may contact you, including calls, text message or email, about any current or future accounts or applications, with respect to all products you have with us at any phone number or email (i) you have provided to us, (ii) from which you contacted us, or (iii) which we obtained and believe we can reach you at, even if your phone provider may charge you message and data rates for calls or texts. You agree that the Authorized Parties may record or monitor any calls between you and the Authorized Parties, and that the Authorized Parties or their service providers may use voiceprint technology for identity verification and fraud prevention purposes. You agree to notify us if you change or discontinue using any phone number you provide. You agree that the Authorized Parties may contact you using an automatic dialer or artificial or pre-recorded voice message. If you no longer wish to be contacted on your cell phone by an automated dialer or artificial or pre-recorded voice message, you must notify us in writing or by telephone. You may provide us written notice cancelling your consent at this address: Discover Bank, PO Box 30937, Salt Lake City, UT 84130-0937. The written notice must include: your name, mailing address, the last four digits of your Account number and the specific cell phone number(s) for which you would like to cancel your consent to be contacted by an automated dialer or artificial or prerecorded voice message. Alternatively, call us at 1-877-256-2632 to submit a request to cancel your consent.

NOTICES: You must give certain notices to us in writing or by telephone. If you change your address, you must notify us of your new address in writing or by telephone within 15 days. Any communications with us required or permitted under the Federal Bankruptcy Code must be in writing, must include your account number, and must be sent to Discover® Personal Loans, PO Box 30396, Salt Lake City, UT 84130-0396 (or such other address as we shall subsequently provide to you).

All notices and communications from us to you may be given in writing, by telephone, or electronically, at any address you have provided to us for your personal loan account. You acknowledge that notices and communications shall be deemed to have been provided to you, and effective, upon transmission. If your contact information changes, you must notify us.

ASSIGNMENT OF LOAN: We may sell, assign, or transfer your loan or any rights under this Loan Agreement, or any portion thereof, without prior notice to you.

You may not sell, transfer, or assign your loan or any rights under this Loan Agreement, or portion thereof to anyone else. Any such sale, transfer, or assignment of your loan or any rights under this Loan Agreement by you to anyone else in violation of this provision shall be null and void.

SERVICING: We may share account information with our affiliates, agents, service providers, or anyone acting on our behalf for any and all purposes arising out of or relating to your personal loan account. We may share such information at any time for marketing and administrative purposes as permitted by law.

MILITARY LENDING ACT:

(1) Statement of the Military Annual Percentage Rate (MAPR).

Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit, including installment loans. In general, the cost of consumer credit to a member of the Armed Forces and their dependents may not exceed an annual percentage rate of 36 percent. This rate must include, as applicable to the credit transaction or account:

•                 The costs associated with credit insurance premiums;
•                 Fees for ancillary products sold in connection with the credit transaction;
•                 Any application fee charged (other than certain application fees for specified credit transactions or accounts); and
•                 Any participation fee charged (other than certain participation fees for a credit card account).

For more information on whether this applies to you, please contact us at 1-844-DFS-4MIL (1-844-337-4645) anytime 24/7. If calling outside the US, you can contact us at +1-801-451-3730.

(2) Oral Disclosures. If you are a member of the Armed Forces or a dependent of such a member covered by the federal Military Lending Act, before proceeding with this Loan Agreement, if you wish to hear important disclosures and payment information, please call 1-844-DFS-4MIL.

GOVERNING LAW: Except as set forth in the “Arbitration of Disputes” section below, this Loan Agreement and any claim or dispute arising out of this Loan Agreement will be governed by applicable federal law and, to the extent state law applies, Delaware law, without regard to any conflict of laws principles that may require or permit the application of the laws of any other jurisdiction. However, in the event you default and we file a lawsuit to recover funds loaned to you, the statute of limitations of the state where the lawsuit is filed will apply, without regard to that state’s conflicts of laws principles or its “borrowing statute.”

CREDIT REPORTS: You authorize us to verify your information and obtain your credit report from consumer reporting agencies, or other third party, at any time before your Loan is repaid in full, for servicing and / or review of your Loan, collection and any other use permitted by law, including to consider you for other products and services. You agree that we may investigate your ability to pay and obtain information about you from other sources, including information to verify your income. If you ask, we will tell you whether credit report(s) was obtained and the name and address of the credit bureau that was used.

California and Utah Residents: As required by law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a consumer credit reporting agency if you fail to perform the terms of your credit obligations.

New York and Vermont Residents: A consumer credit report may be ordered on you in connection with your application for credit. If you ask, we will tell you whether or not one was ordered and if one was, the name and address of the consumer credit reporting agency that provided it. Subsequent consumer credit reports may be requested or used in connection with an update, renewal, or extension of the credit applied for without further notice to you.

We may report information about your loan to credit bureaus. Late payments, missed payments or other defaults on your loan may be reflected on your credit report. If you believe that specific information that we have reported about your loan is inaccurate, notify us at Discover Personal Loans, PO Box 30396, Salt Lake City, UT 84130-0396 (or such other address as we shall subsequently provide to you).

MISCELLANEOUS. No provision of this Loan Agreement shall be modified or limited except by a documented agreement between you and us. The unenforceability of any provision of this Loan Agreement shall not affect the enforceability or validity of any other provision of this Loan Agreement. This Loan Agreement shall apply to any assignee or subsequent holder of the personal loan. The headings in this Loan Agreement are for reference purposes only and shall not affect the interpretation of this Loan Agreement in any way.

WARRANTIES: EXCEPT AS EXPRESSLY STATED IN THIS LOAN AGREEMENT, WE MAKE NO REPRESENTATIONS OR WARRANTIES TO YOU, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

LIMITATION OF LIABILITY: IN NO EVENT SHALL WE BE LIABLE TO YOU FOR ANY LOST PROFITS OR SPECIAL, EXEMPLARY, CONSEQUENTIAL OR PUNITIVE DAMAGES, EVEN IF INFORMED OF THE POSSIBILITY OF SUCH DAMAGES. FURTHERMORE, WE MAKE NO REPRESENTATION OR WARRANTY TO YOU REGARDING THE EFFECT THAT THIS LOAN AGREEMENT MAY HAVE UPON YOUR FOREIGN, FEDERAL, STATE OR LOCAL TAX LIABILITY.

Arbitration of Disputes: Agreement to Arbitrate. In the event of a dispute between you and us arising out of or relating to this Loan Agreement or the relationships resulting from this Loan Agreement or any other dispute between you or us, including, for example, a dispute based on a federal or state statute or local ordinance (“Claim”), either you or we may choose to resolve the Claim by binding individual arbitration, as described below, instead of in court. Any Claim (except for a Claim challenging the validity or enforceability of this arbitration agreement, including the Class Action Waiver) may be resolved by binding arbitration if either party requests it. THIS MEANS IF EITHER YOU OR WE CHOOSE ARBITRATION, NEITHER PARTY WILL HAVE THE RIGHT TO LITIGATE SUCH CLAIM IN COURT OR TO HAVE A JURY TRIAL. ALSO, DISCOVERY AND APPEAL RIGHTS ARE LIMITED IN ARBITRATION.

The arbitrator shall decide all issues except the following (which are for a court of competent jurisdiction to decide): (1) issues that are reserved for a court in this Agreement; (2) issues that relate to the scope, validity, and enforceability of the arbitration agreement, class action waiver, or any of the provisions of this “Arbitration of Disputes” section; and (3) issues that relate to the arbitrability of any Claim.

Even if all parties have opted to litigate a Claim in court, you or we may elect arbitration with respect to any Claim made by a new party or any new Claims later asserted in that lawsuit.

We and anyone to whom we assign your debt will not initiate an arbitration proceeding to collect a debt from you unless you assert a Claim against us. We may seek arbitration on an individual basis of any Claim asserted by you, whether in arbitration or any proceeding, including in a proceeding to collect a debt.

This arbitration agreement does not apply if, on the date you submit your application or on the date we seek to invoke this arbitration agreement, you are a member of the Armed Forces or a dependent of such a member covered by the federal Military Lending Act. If you would like more information about whether you are covered by the Military Lending Act, please contact us at 1-844-DFS-4MIL or if you are calling from outside the U.S. at +1-801-451-3730.

CLASS ACTION WAIVER. ARBITRATION MUST BE ON AN INDIVIDUAL BASIS. THIS MEANS NEITHER YOU NOR WE MAY JOIN OR CONSOLIDATE CLAIMS IN ARBITRATION BY OR AGAINST OTHER BORROWERS OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR MEMBER OF A CLASS OR IN A PRIVATE ATTORNEY GENERAL CAPACITY.

The arbitrator may award injunctive relief only in favor of the individual party seeking relief and only to the extent necessary to provide relief warranted by that party’s individual Claim. Claims brought as part of a class action or other representative action can only be arbitrated on an individual basis. The arbitrator may not award class, representative, or public injunctive relief. If a court decides that applicable law precludes enforcement of any of this paragraph’s limitations as to a particular Claim for relief, then after all appeals from that decision have been exhausted, that Claim (and only that Claim) must be severed from the arbitration and may be brought in court. Only a court, and not an arbitrator, shall determine the validity, scope, and effect of the Class Action Waiver.

Your and Our Right to Go to Small Claims Court. Notwithstanding any other language in this “Arbitration of Disputes” section, you and we will not choose to arbitrate any individual Claim you or we bring in small claims court (or an equivalent court). This means you or we may bring an action in small claims court (or an equivalent court) without being subject to arbitration. However, if a Claim is transferred, removed, or appealed from small claims court (or an equivalent court) to a different court, or if any Claim brought in small claims court exceeds the small claims court limit, you or we may then choose to arbitrate. Whether a Claim falls within the jurisdictional limits of small claims court is for the small claims court to decide in the first instance and for a court of competent jurisdiction to otherwise decide.

JURY TRIAL WAIVER. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, YOU AND WE WAIVE THE RIGHT TO A JURY TRIAL.

Governing Law and Rules. This arbitration agreement is governed by the Federal Arbitration Act (“FAA”). Arbitration must proceed with the American Arbitration Association (“AAA”). The rules for the arbitration will be those in this arbitration agreement and the procedures of the AAA, including the AAA Consumer Arbitration Rules and the AAA Mass Arbitration Supplementary Rules (collectively, the “AAA Rules”), but the rules in this arbitration agreement will be followed if there is disagreement between the agreement and the AAA’s procedures. If the AAA’s procedures change after the Claim is filed, the procedures in effect when the Claim was filed will apply. For a copy of the AAA’s procedures, to file a Claim, or for other information, please contact the AAA at 1101 Laurel Oak Rd., Voorhees, NJ 08043, www.adr.org. If the AAA is completely unavailable, and if you and we cannot agree on a substitute, then either you or we may request that a court with jurisdiction appoint a substitute.

Notwithstanding any other language in this “Arbitration of Disputes” section, in the event of a Mass Arbitration (as defined in the AAA Rules) in which you participate, you agree to cooperate with us and the AAA (or other arbitration administrator) or arbitrator to establish alternative processes or procedures that will provide for an efficient, cost-effective resolution of Claims. Depending on the circumstances, such processes and procedures may include “batching” of Claims or the use of “bellwether proceedings” which may end up delaying the resolution of your Claim. In the event of such a delay, we agree that the statute of limitations applicable to your Claim will be tolled until your Claim is decided, withdrawn, or settled.

Fees and Costs. Payment of all filing, administration and arbitrator fees will be governed by the AAA Rules or rules of the other arbitration administrator. However, if you wish to begin an individual arbitration against us that is not part of a Mass Arbitration, but you cannot afford to pay your share of the AAA arbitration fees and cannot obtain a waiver of those fees from the AAA, we will advance those fees if you ask us inmwriting and are acting in good faith. Any request like this should be sent to Discover Bank, P.O. Box 30421, Salt Lake City, UT 84130-0421. If you lose the arbitration, the arbitrator will decide whether you must reimburse us for the money we advanced for you for the arbitration. If you win the arbitration, we will not ask for reimbursement of money we advanced. Additionally, if you win the arbitration, the arbitrator may decide that under applicable law you are entitled to be reimbursed your reasonable attorneys’ fees and costs (if actually payable by you). The arbitrator may also allocate compensation, expenses, and administrative fees (which include filing and hearing fees) to any party upon the arbitrator’s determination that the party’s claim or counterclaim was filed for purposes of harassment or is patently frivolous.

Hearings and Decisions. Arbitration hearings will take place in the federal judicial district where you live. A single arbitrator will be appointed. The arbitrator must:

•                 Follow all applicable substantive law, except when contradicted by the FAA;
•                 Follow applicable statutes of limitations;
•                 Honor valid claims of privilege;
•                 Issue a written decision including the reasons for the award.

The arbitrator’s decision will be final and binding except for any review allowed by the FAA. However, if more than $100,000 was genuinely in dispute, then either you or we may choose to appeal to a new panel of three arbitrators. The appellate panel is free to accept or reject the entire original award or any part of it. The appeal must be filed with the AAA not later than 30 days after the original award issues. Any appellate costs will be allocated pursuant to the AAA rules. Any arbitration award may be enforced (such as through a judgment) in any court with jurisdiction. Any finding, award, or judgment from an arbitration of any Claim shall apply only to that arbitration. No finding, award, or judgment from any other arbitration shall impact the arbitration of any Claim.

Claim Notice and Special Payment. If you have a Claim, before initiating an arbitration proceeding, you may give us written notice of the Claim (“Claim Notice”) at least 30 days before initiating the arbitration proceeding. The Claim Notice must include your name, address, and Loan number and explain in reasonable detail the nature of the Claim and any supporting facts. Any Claim Notice shall be sent to us at Discover, P.O. Box 794, Deerfield, IL 60015 (or such other address as we shall subsequently provide to you). If, and only if, (1) you submit a Claim Notice in accordance with this agreement on your own behalf (and not on behalf of any other party); and (2) an arbitrator, after finding in your favor in any respect on the merits of your claim, issues you an award that (excluding any arbitration fees or attorneys’ fees and costs awarded by the arbitrator) is greater than the value of Discover’s last written settlement offer made before an arbitrator was selected, then you will be entitled to the amount of the award or $7,500, whichever is greater. If you are entitled to the $7,500, you will receive in addition any arbitration fees or attorneys’ fees and costs awarded by the arbitrator.

Other Beneficiaries of this Agreement to Arbitrate. In addition to you and us, the rights and duties described in this arbitration agreement apply to: our Affiliates, successors, subsidiaries, assigns, and our and their officers, directors and employees and any third party co-defendant of a Claim subject to this arbitration agreement.

Survival of this Agreement. This arbitration agreement shall survive:

•                 Termination of your Loan;
•                 Voluntary payment of your Loan in full or in part;
•                 Any legal proceedings to collect money you owe;
•                 Any bankruptcy by you; and
•                 Any sale, assignment, or transfer by us of your Loan.

You Have the Right to Opt out of Arbitration for this Loan. You may opt out of the arbitration agreement but only if we receive from you a written notice of opt out within 60 days after consummation of your Loan. You must send the notice of opt out to: Discover Bank, P.O. Box 30938, Salt Lake City, UT 84130-0938. Your notice of opt out must include your name, address, phone number, Loan number and personal signature. No one else may sign the notice of opt out for you. Your notice of opt out must not be sent with any other correspondence. Opting out of arbitration will not affect your other rights or responsibilities under this Loan Agreement. If you opt out of arbitration, neither you nor we will be subject to the arbitration agreements for this Loan. Opting out of arbitration for this Loan will not constitute rejection of any prior or future arbitration agreement between you and us.

ADDITIONAL STATE-SPECIFIC PROVISIONS:

California Residents: A married applicant may apply for a separate account.

Iowa and Kansas Residents: NOTICE TO CONSUMER: (1) Do not enter into this Loan Agreement before you read it. (2) You are entitled to a copy of this Loan Agreement.

Maryland Residents: We elect Subtitle 10, Credit Grantor Closed End Credit Provision to Title 12 of the Commercial Law Article of the Annotated Code of Maryland, to govern this Loan Agreement, only to the extent not inconsistent with 12 U.S.C. §1831d and related regulations and opinions.

Missouri Residents: Oral agreements or commitments to loan money, extend credit, or to forbear from enforcing repayment of a debt, including promises to extend or renew such debts, are not enforceable. To protect you (borrower(s)) and us (creditor) from misunderstanding or disappointment, any agreements we reach covering such matters are contained in this writing, which is the complete and exclusive statement of the agreement between us, except as we may later agree in writing to modify it.

Ohio Residents: The Ohio laws against discrimination require that all creditors make credit equally available to all creditworthy customers and that consumer credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers compliance with this law.

Texas Residents: You give up (waive) your common law rights to receive notice of intent to accelerate and notice of acceleration. This means that you give up the right to receive notice that we intend to demand that you pay all that you owe on this contract at once (accelerate) and notice that we have accelerated.

This written Loan Agreement represents the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties.

Discover Bank makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status.

DPLLA.10.20.24

Terms and Conditions

­­­IMPORTANT INFORMATION

IMPORTANT INFORMATION