Important Information

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

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

Application Information: Federal law requires that we obtain certain information about you such as date of birth, Social Security Number and street address in order to verify your identity. You authorize us to receive and exchange information about you, including form your employer, your bank, credit bureaus and others for purposes of verifying your identity and the information on this application and determining your eligibility for credit and for the review or collection of your loan. Upon your request, we will inform you of the name and address of each consumer reporting agency from which we obtained a consumer report relating to you. This Offer Is Not Transferable, You Must Be At Least 18 Years of Age and You Must Be A U.S. Citizen or Permanent U.S. Resident. This offer is void if you have previously accepted an offer of a Discover Personal Loan from us.

$25,000 minimum annual household income required.

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

You may not use a Discover Personal Loan to pay any Discover accounts

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.

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: No agreement, court order or individual statement applying to marital property will adversely affect a creditor’s interest unless prior to the time credit is granted the creditor is furnished with a copy of the agreement, court order or statement, or has actual knowledge of the adverse provision. Married Wisconsin residents must furnish the name and address of their spouse to Discover Personal Loans at PO Box 15410, Wilmington, DE 19886-0820.

Annual Percentage Rates (APR) range from 6.99% to 17.99% and will be determined based on your creditworthiness and loan term. Loan amounts range from $5,000 to $25,000.

Estimated Payments and Finance Charges
$5,000
APR 72 months 60 months 48 months 36 months
  Monthly Payment Finance Charges Monthly Payment Finance Charges Monthly Payment Finance Charges Monthly Payment Finance Charges
7.99% $88 $1,310 $101 $1081 $122 $858 $157 $640
11.99% $98 $2,036 $111 $1,672 $132 $1,319 $166 $978
13.99% $103 $2,416 $116 $1,979 $137 $1,557 $171 $1,151
18.99% $117 $3,414 $130 $2,781 $149 $2,147 $183 $1,597
$ 10,000
APR 72 months 60 months 48 months 36 months
  Monthly Payment Finance Charges Monthly Payment Finance Charges Monthly Payment Finance Charges Monthly Payment Finance Charges
7.99% $175 $2,620 $203 $2,163 $244 $1,716 $313 $1,279
11.99% $195 $4,072 $222 $3,344 $263 $2,638 $332 $1,915
13.99% $206 $4,832 $233 $3,958 $273 $3,114 $342 $2,302
18.99% $234 $6,827 $259 $5,561 $299 $4,350 $367 $3,194
$15,000
APR 72 months 60 months 48 months 36 months
  Monthly PaymentFinance Charges Monthly PaymentFinance Charges Monthly PaymentFinance Charges Monthly PaymentFinance Charges
7.99% $263 $3,931 $304 $3,244 $366 $2,574 $470 $1,919
11.99% $293 $6,109 $334 $5,015 $395 $3,957 $498 $2,933
13.99% $309 $7,248 $349 $5,937 $410 $4,671 $513 $3,453
18.99% $351 $10,241 $389 $8,342 $448 $6,524 $550 $4,792
$20,000
APR 84 months 72 months 60 months 48 months
  Monthly PaymentFinance Charges Monthly PaymentFinance Charges Monthly PaymentFinance Charges Monthly PaymentFinance Charges
8.99% $322 $7,021 $360 $5,950 $415 $4,904 $498 $3,885
13.99% $375 $11,474 $412 $9,665 $465 $7,916 $546 $6,229
15.99% $397 $13,359 $434 $11,228 $486 $9,175 $567 $7,202
18.99% $432 $16,291 $467 $13,654 $519 $11,122 $598 $8,699
$25,000
APR 84 months 72 months 60 months 48 months
  Monthly PaymentFinance Charges Monthly PaymentFinance Charges Monthly PaymentFinance Charges Monthly PaymentFinance Charges
8.99% $402 $8,776 $451 $7,437 $519 $6,130 $622 $4,856
13.99% $468 $14,342 $515 $12,081 $582 $9,895 $683 $7,786
15.99% $496 $16,698 $542 $14,035 $608 $11,469 $708 $9,002
18.99% $540 $20,364 $584 $17,068 $648 $13,903 $747 $10,874

Late Charge: If we do not receive the full amount of any monthly payment by its due date, we will charge you a late fee of $39.

Default Rate: If we do not receive the full amount of any monthly payment by its due date, we may increase your interest rate to a Default Rate up to a maximum of 28.99%. Your Default Rate is determined based on factors such as your current interest rate, payment history with us and your general credit history.

Further Terms: See your Loan Agreement for any additional information about non-payment, default, any required repayment in full before the scheduled date and prepayment refunds and penalties.

Disbursement. Your signed application means you acknowledge receipt of the Loan Agreement and agree that if you have indicated that you intend to use the loan for debt consolidation purposes then, at our discretion, 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 we require or you request that the loan funds be used to pay your creditors directly, you may choose the creditors and the order in which payments are made. It may take up to two weeks for payments to your creditors to be made. Please continue to make payments to those accounts to avoid late fees and finance charges. You agree that any loan funds remaining after payment to your creditors will be disbursed in accordance with your signed application. If you request that a check activating the loan be sent to your address, you agree that if you cash the check, you will be bound by the terms of the Loan Agreement that will be sent with the check. If you requested direct deposit of the loan funds, your signed application means you agree to have the loan funds deposited directly into your checking/savings account, as indicated on the application.

30-Day Guarantee: If you return the loan proceeds (all amounts advanced to you or on your behalf) within 30 days, we will not charge you any interest and the loan will be cancelled. You must mail your request to cancel in writing, along with a single check for the amount of the loan proceeds to: Discover Personal Loans, PO Box 30954, Salt Lake City, UT 84130-0954. We must receive the loan proceeds check and request to cancel within 30 days of your acceptance of the Loan.

LOAN AGREEMENT

PROMISE TO PAY: You agree to the terms of this Loan Agreement and promise to pay to Discover Bank (“us” or “we” or “our”) or our order the Principal Amount Advanced (the Amount Financed and the Origination Fee, if any), with interest at the Interest Rate disclosed with the Truth in Lending Disclosure Statement. Interest will begin to accrue on the entire Principal Amount Advanced from the date of the first disbursement and will continue to accrue on the unpaid balance until you have repaid all of the Principal Amount Advanced. The payment schedule is estimated on the Truth in Lending Disclosure Statement. You will make consecutive monthly payments in the amounts and in accordance with the due dates shown on the monthly billing statements or coupons that you will receive. You are obligated to pay the monthly payments by the due dates even if you do not receive a billing statement or coupon. In the event you do not receive a billing statement or coupon, 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).

Each payment will be applied, first to any unpaid fees and charges (other than Late Fees), then to accrued and unpaid interest,then to the unpaid balance of the Principal Amount Advanced, then to any unpaid Late Fees. The Finance Charge (the total interest you pay) and Total of Payments (the total interest and principal you pay) are based on the assumption that you willmake every payment on the day it is due. Your final payment may be larger or smaller, depending on whether you have made payments late or early. 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 requested that your due date 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 amounts then outstanding with your final payment; however, the number of payments will be increased, if necessary, so that the amount of the final payment will not be more than twice the amount of the previous payment. Any portion of the outstanding balance that remains unpaid after maturity will bear interest at the Default Rate. We can accept late payments or partial payments or checks and money orders marked “payment in full” or with any other restrictive endorsement without losing any of our rights under this Loan Agreement.

DISBURSEMENT: The proceeds of your loan will be disbursed in accordance with the instructions you have provided. If we reasonably conclude that we will not be able to disburse some or all of the proceeds of your loan in accordance with your instructions, then in 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.

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

LATE FEE and DEFAULT RATE: Unless otherwise prohibited by applicable law, if we do not receive the full amount of any monthly payment by its due date, you will pay a Late Fee of $39. If we do not receive the full amount of any monthly payment by its due date, in addition to charging you a Late Fee we may also increase your interest rate up to a maximum of 28.99% (the “Default Rate”). Factors such as your current interest rate, your payment history with us, and your general credit history will be used in determining your Default Rate. The application of the Default Rate may cause the amount of the final payment to change, may cause the amount of the monthly payments to increase and may cause the number of payments to change.

RETURNED PAYMENT FEE: We will charge you a Returned Payment Fee of $39 each time you pay us with a check or other instrument that is returned unpaid. This fee will also apply if a debit transaction to a deposit account from which you have authorized us in writing, electronically, or orally to periodically deduct all or a part of an amount you owe us under this Agreement is returned unpaid. We will charge you this fee the first time any payment is returned unpaid, even if it is paid upon resubmission.

ORIGINATION FEE:Your Origination Fee, if any, will be disclosed in the Itemization of Amount Financed included with your Truth In Lending Disclosure Statement. This fee is a prepaid FINANCE CHARGE. This fee is earned when assessed. If you prepay all or part of your loan, you will not be entitled to a rebate of this fee.

DEFAULT–ACCELERATION–COLLECTION COSTS: You will be in default if we do not receive the full amount of any monthly payment by its due date or if we reasonably believe that you are unable or unwilling to pay. If you are in default, we can demand upon notice the immediate payment of the accelerated balance. In addition, a negative credit report reflecting on your credit record may be submitted to one or more credit reporting agencies. If you are in default on this loan, you will also be deemed to be in default on any Discover Card Account or other loan account you have with us. We can accept late payments or partial payments or delay enforcing or not enforce any of our rights under this Loan Agreement without losing or waiving them. 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 costs in connection with any appeal.

PRIVACY: Our Privacy Policy includes a summary of the personal information we collect, when it may be shared with others, how we safeguard the confidentiality, and security of information and the steps you may take to limit our sharing of such information with others. Our personnel may listen to or record telephone calls between you and our representatives without notice to you as permitted by law. You agree that we may contact you about your loan by e-mail, using any e-mail address you have provided to us, and by using automated telephone equipment and prerecorded telephone calls to call you, using any telephone number you have provided to us, even if that number is a cellular telephone number.

NOTICES TO US: You must give certain notices to us in writing. If you change your address you must notify us of your new address in writing 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 30954, Salt Lake City, UT 84130-0954 (or such other address as we shall subsequently provide to you).

ASSIGNMENT OF LOAN: We may sell, assign, or transfer your loan or any portion thereof without notice to you.

CLAIM NOTICES: In the event that you or we have a claim that arises from or relates to your loan, any prior account you had with us, your application, the relationships which result from your loan, or the enforceability of the Loan Agreement or any prior agreement, before initiating, joining, or participating in any judicial or arbitration proceeding, as either an individual litigant or member of a class (“Proceeding”), the complaining party shall give the other party: (1) a written notice of the claim (“Claim Notice”), at least 15 days before initiating any Proceeding, explaining in reasonable detail the nature of the claim and any supporting facts; and (2) a reasonable good faith opportunity to resolve the claim without the necessity of a Proceeding. This includes any claims involving our parent corporation, subsidiaries, affiliates (including, without limitation, Discover Financial Services and DFS Services LLC), predecessors, successors, assigns, as well as the officers, directors, and employees of each of these entities. Any Claim Notice shall be sent to us at Discover Personal Loans, PO Box 30954, Salt Lake City, UT 84130-0954 (or such other address as we shall subsequently provide to you) or to you at your address appearing in our records or, if you are represented by counsel, to your attorney at your attorney’s office.

ARBITRATION OF DISPUTES:

You may reject this Arbitration of Disputes section by providing us a notice of rejection within 30 days after you accept this Loan Agreement, at the following address: Discover Personal Loans, PO Box 30954, Salt Lake City, UT 84130-0954 (or such other address as we shall subsequently provide to you). Your rejection notice must include your name, address, telephone number, loan number, and signature and must not be sent with any other correspondence. Calling us to indicate that you reject the Arbitration of Disputes section or sending a rejection notice in a manner or format that does not comply with all applicable requirements is insufficient notice. In order to process your notice, we require that the notice be provided by you directly and not through a third party. Rejection of arbitration will not affect your other rights or responsibilities under this Loan Agreement or your obligation to arbitrate disputes under any other loan or account as to which you and we have agreed to arbitrate disputes. If you do not send a rejection notice, you will be obligated by the Arbitration of Disputes section with respect to this and any prior loan or account you have had with us, even if you have previously sent a rejection notice with respect to that prior loan or account.

In the event of any past, present or future claim or dispute (whether based upon contract, tort, statute, common law or equity) between you and us arising from or relating to your loan, any prior loan or account you have had with us, your application, the relationships which result from your loan or the enforceability or scope of this arbitration provision, of this Loan Agreement or of any prior agreement, you or we may elect to resolve the claim or dispute by binding arbitration.

IF EITHER YOU OR WE ELECT ARBITRATION, NEITHER YOU NOR WE SHALL HAVE THE RIGHT TO LITIGATE THAT CLAIM IN COURT OR TO HAVE A JURY TRIAL ON THAT CLAIM. PRE-HEARING DISCOVERY RIGHTS AND POSTHEARING APPEAL RIGHTS WILL BE LIMITED. NEITHER YOU NOR WE SHALL BE ENTITLED TO JOIN OR CONSOLIDATE CLAIMS IN ARBITRATION BY OR AGAINST OTHER BORROWERS WITH RESPECT TO OTHER LOANS, OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR MEMBER OF A CLASS OR IN A PRIVATE ATTORNEY GENERAL CAPACITY (“Class Action Waiver”).

Notwithstanding anything else to the contrary in this arbitration provision, only a court, and not an arbitrator, shall determine the validity and effect of the Class Action Waiver. Even if all parties have opted to litigate a claim in court, you or we may elect arbitration with respect to any claim made by a new party or any new claims later asserted in that lawsuit, and nothing undertaken therein shall constitute a waiver of any rights under this arbitration provision.

We will not invoke our right to arbitrate an individual claim you bring in small claims court or your state’s equivalent court, if any, unless such action is transferred, removed or appealed to a different court.

Your loan involves interstate commerce, and this provision shall be governed by the Federal Arbitration Act (FAA). The arbitration shall be conducted, at the option of whoever files the arbitration claim, by either the American Arbitration Association (AAA) or the National Arbitration Forum (NAF) in accordance with their procedures in effect when the claim is filed. For a copy of their procedures, to file a claim, or for other information, contact AAA at 335 Madison Avenue, Floor 10, New York, NY 10017-5905, www.adr.org (phone 1-800-778-7879) or NAF at PO Box 50191, Minneapolis, MN 55405 (phone 1-800-474-2371). No other arbitration forum will be permitted, except as agreed to pursuant to a writing signed by both parties. Unless consented to by all parties, no arbitration may be administered by any administrator that has any formal or informal policy, rule or procedure that is inconsistent with or purports to override the terms of this section.

At your written request, we will advance any arbitration filing, administrative, and hearing fees which you would be required to pay to pursue a claim or dispute as a result of our electing to arbitrate that claim or dispute. Send requests to Discover Personal Loans, PO Box 30954, Salt Lake City, UT 84130-0954 (or such other address as we shall subsequently provide to you). The arbitrator will decide who will ultimately be responsible for paying those fees. You will only be responsible for paying or reimbursing our arbitration filing, administrative, or hearing fees to the extent you would have been responsible for paying “attorneys’ fees and court or other collection costs” had the action proceeded in court. In no event will you be required to pay or reimburse any fees or costs advanced or incurred by us in connection with an arbitration proceeding where such a payment or reimbursement is prohibited by applicable law.

Any arbitration hearing will take place in the federal judicial district where you reside. The arbitrator shall follow applicable substantive law to the extent consistent with the FAA and applicable statutes of limitations and shall honor claims of privilege recognized at law and shall be authorized to award all remedies permitted by the substantive laws that would apply if the action were pending in court. If requested by any party, the arbitrator shall write an opinion containing the reasons for the award. The arbitrator’s decision will be final and binding except for any appeal rights under the FAA and except that if the amount in controversy exceeds $100,000.00, any party may appeal the award within 30 days to a three-arbitrator panel, which shall review the award de novo. Unless applicable law provides otherwise, the appealing party will pay the cost of the appeal, regardless of its outcome. However, we will consider in good faith any reasonable request for us to bear the fees charged by the arbitration administrator and the arbitrators in connection with the appeal. Judgment upon any award by the arbitrator may be enforced in any court having jurisdiction.

Our rights and obligations under this arbitration provision shall inure to the benefit of and be binding upon our parent corporations, subsidiaries, affiliates (including, without limitation, Discover Financial Services and DFS Services LLC), predecessors, successors, assigns, as well as the officers, directors, and employees of each of these entities, and will also inure to the benefit of any third party named as a co-defendant with us or with any of the foregoing in a claim which is subject to this arbitration provision. Your rights and obligations under this arbitration provision shall inure to the benefit of, and be binding upon, all persons contractually liable under this Loan Agreement. This arbitration provision shall survive forgiveness of your loan as well as voluntary payment in full by you, any legal proceedings by us to collect a debt owed by you, any bankruptcy by you, and any sale by us of your loan.

CREDIT REPORTS: You authorize us to obtain your credit report at any time before your Loan is repaid in full. If you ask, we will tell you whether one was obtained and the name and address of the credit bureau that was used.

GOVERNING LAW: 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.

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 30954, Salt Lake City, UT 84130-0954 (or such other address as we shall subsequently provide to you).