IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

PENFED PLATINUM REWARDS VISA SIGNATURE® CARD, PENFED PLATINUM CASH 
REWARDS VISA® CARD, AND PENFED GOLD VISA® CARD

Cardholder Agreement and Disclosure Statement 

DEFINITIONS.  The  “Card”  means  the  Pentagon  Federal 
Credit  Union  (PenFed)  credit  card  which  we  issue  to  you 
under  this  Agreement,  and  includes  any  device  or  check 
used  to  obtain  credit  or  cash  from  the  Account.  Unless 
otherwise stated, “Account” means your Card account with 
us. An Authorized User is an individual receiving a Card, 
but who has no responsibility for payment of the Account. 
The  words  “you”,  “your”  and  “cardholder”  mean  each 
person,  jointly  and  individually  who  holds,  signs,  retains, 
uses,  or  permits  others  to  use  or  sign  a  card.  The  words 
“our”, “we” and “us” mean PenFed or any of its assignees.  

1.  AGREEMENT.  We  agree  to  extend  credit  to  you  and 
advance  amounts  up  to  your  credit  limit,  but  transaction 
limits may apply. Your credit limit is not increased by any 
credit  balance  you  may  have  on  your  account.  You  agree 
to sign the back of the Card as soon as you receive it. You 
agree to pay us for credit extended for the use of the Card 
by you or any other cardmember, along with all applicable 
finance charges, fees and insurance, if any apply. By signing, 
using or permitting others to use the Card, you agree to the 
terms and conditions contained in this Agreement, on the 
Card,  on  any  charge  slip  resulting  from  authorized  use  of 
the Card, on any authorized cash advance slip, and to accept 
responsibility for all actions taken with the Card.

2.  CREDIT  LIMIT.  You  agree  to  use  the  Card  within  the 
credit limit we authorize. You also agree that we can change 
your credit limit at any time. We are not obligated to accept 
charges  that  would  cause  you  to  exceed  your  authorized 
credit  limit  but  we  may  do  so  in  our  sole  discretion.  Any 
extension of credit to you, made or honored by us, shall be 
at  such  times  and  in  such  amounts  and  for  such  purposes 
as  to  conform  to  this  Agreement,  and  only  when  there  is  
no default.

3.  CHANGE  IN  TERMS.  You  agree  that  the  terms  of  this 
Agreement are applicable to any cardholder. You also agree 
that we can change the terms of this Agreement at any time 
by  adding,  deleting,  or  modifying  any  provision  of  the 
Agreement. We will give you notice of any such changes, if 
required by law.

Termination  of  the  account  by  you  or  PenFed  will  not 
affect  your  obligation  to  pay  the  Account  balance  plus 
any  finance  charge  and  other  charges  you  owe  under  this 
Agreement.  You  are  responsible  for  all  transactions  made 
to  your  account  after  termination,  unless  the  transactions 
were  unauthorized.  Should  you  choose  to  cancel  your 
Account,  the  terms  in  effect  at  the  time  that  you  cancel 
the  Account  will  apply  until  the  outstanding  balance  of 
the Account is paid in full, unless you are in default. Your 
card will no longer be available for use for new transactions, 
including  purchases,  as  the  Account  will  be  closed  (if  it 
is  not  already  closed.)  Any  rewards  points  or  miles  you 
have earned, if applicable, will be forfeited unless they are 
redeemed before the Account is closed. If you do not notify 
us  of  your  decision  to  terminate  the  account  by  the  date 
stated in any notice we provide, or if you notify us but then 
use the Account after the date stated in the notice, you will 
be deemed to accept all changes to the Account’s terms and 
conditions of this Agreement. 

If you are in default because your payment has not been 
received within 60 days of the due date, you do not have the 
right to reject the changes we make to this Agreement or the 
Account’s terms and conditions. 

4.  FINANCIAL  CONDITION  CHANGE.  You  agree  to 
advise  us  of  any  change  in  your  financial  condition  that 
may  affect  your  creditworthiness  and  to  provide  us  with 
a  current  loan  application  whenever  we  request  one.  You 
expressly  authorize  any  person,  partnership,  association, 

firm, corporation or consumer reporting agency, upon our 
request,  to  furnish  us  with  information  concerning  you 
relevant to the review and evaluation of this Account. You 
understand and agree that we may terminate your account 
upon reevaluation of your creditworthiness.

5.  FINANCE  CHARGES  WILL  BE  IMPOSED  IN  THE 
FOLLOWING  MANNER  AND  WILL  BE  IN  AMOUNTS 
NOT IN EXCESS OF THOSE PERMITTED BY LAW:

A.  PURCHASES:  (1)  No  finance  charge  will  be  imposed 
during  the  next  billing  cycle  (defined  as  the  time  interval 
between  regular  monthly  billing  statement  dates)  if  you 
pay the entire new balance shown on the current periodic 
statement  and  we  receive  your  payment  on  or  before  the 
payment due date shown on the statement. (2) In all other 
cases, a finance charge will be imposed based on the average 
daily  balance  of  all  purchases  and  debit  adjustments, 
hereafter referred to as purchases. The average daily balance 
is the sum of all outstanding purchases, which is determined 
by  including  new  purchases  and  deducting  payments  or 
credits  and  excluding  any  unpaid  finance  charge  for  your 
Account  on  each  day  of  the  billing  cycle  divided  by  the 
number of days in the billing cycle. A purchase appearing 
on  the  periodic  statement  is  considered  a  part  of  the 
outstanding  balance  from  the  date  of  posting.  (3)  The 
amount  of  the  finance  charge  is  calculated  by  multiplying 
the  average  daily  balance  for  purchases  by  the  monthly 
periodic rate. The monthly periodic rate is the yearly interest 
rate divided by 12.

B.  CASH  ADVANCES.  (1)  Finance  charges  accrue  on 
all  cash  advance  amounts  from  the  date  charged  to  your 
Account  and  continue  so  long  as  such  amounts  remain 
outstanding.  (2)  A  finance  charge  will  be  imposed  on  the 
average  daily  balance  of  cash  advances,  which  is  the  sum 
of  the  cash  advances  (determined  by  including  new  cash 
advances  and  deducting  any  payments  or  credits  and 
excluding any unpaid finance charge) outstanding each day 
during the billing cycle, divided by the number of days in 
the billing cycle. A cash advance appearing on the periodic 
statement  is  considered  a  part  of  the  outstanding  balance 
from the date of posting. (3) The amount of finance charge is 
calculated by multiplying the average daily balance for cash 
advances by the monthly periodic rate.

C.  BALANCE  TRANSFERS.  Balance  transfers  are  treated 
as cash advances. There is no grace period for payments on 
balance  transfers.    If  you  transfer  a  balance  from  another 
financial  institution  to  us,  you  will  immediately  incur 
finance charges at the regular or promotional APR available 
at  the  time  of  the  balance  transfer  and  on  purchases  at 
the  purchase  APR.    For  instance  if  you  transfer  $1,000  at 
a  promotional  rate  of  0%  APR  and  then  make  a  purchase 
of $200, you will immediately accrue finance charges at the 
purchase rate, forgoing the grace period.  To avoid finance 
charges  on  new  purchases  after  you  transfer  a  balance, 
you  must  pay  all  balances  on  your  account  including  any 
balances that you transfer in full by the due date.  

6.  PAYMENTS.  A  payment  delivered  by  regular  U.S.  mail 
must  be  sent  to  the  address  indicated  on  your  periodic 
statement. Your payment by mail must be a check or money 
order in U.S. dollars with your account number on the check 
or money order and drawn on a U.S. financial institution, 
and  be  accompanied  by  the  payment  voucher  from  your 
statement.  Write  your  account  number  on  your  check  or 
money  order.  All  such  payments  will  be  posted  to  your 
account as of the date we receive them provided we receive 
them  before  5:00  p.m.  at  the  address  indicated  on  your 
periodic  statement.  Payments  received  at  other  locations 

or  not  conforming  to  these  procedures  may  be  delayed  in 
posting,  but  not  more  than  5  business  days  from  the  date 
of receipt.

  PenFed,  in  its  sole  discretion,  may  accept  a  check  for 
payment on your Account even though payment was made 
before the date of the check or a check which has a date more 
than  6  months  old.  For  the  first  six  months  all  payments 
received from PenFed members who have held membership 
for  six  months  or  less  will  be  credited  to  your  Account  as 
of the date we receive them, but credit in the amount of the 
payment  will  not  be  available  to  you  for  10  calendar  days. 
Payments  made  electronically  through  our  automated 
telephone  service,  member  service  representatives,  or  our 
website  will  be  subject  to  any  processing  times  disclosed 
with those payments. 

Your minimum payment due is the greater of $15 or 2% 
of  the  new  balance  plus  the  past  due  amount,  if  any,  and/
or all amounts in excess of the authorized credit line/limit 
shown  on  the  periodic  statement.  If  the  new  balance  does 
not  exceed  $15,  only  the  new  balance  total  is  due  and  is 
shown as the minimum payment due. All past due or over 
limit amounts are due and must be fully paid immediately 
upon notification. You may, however, pay the total amount 
due, which is shown as the new balance, or you may pay any 
additional amount you wish over the minimum payment due.
If  your  payment  is  not  honored  or  we  must  return 
it  to  you  because  it  could  not  be  processed,  a  charge  may 
be  made  to  your  account  in  the  amount  indicated  for 
“returned  payment”  on  PenFed’s  current  Schedule  of 
Service  Fees  brochure.  In  addition,  for  the  6  months 
following  any  such  dishonored  payment,  any  payments 
you  make  will  be  credited  to  your  account  as  of  the 
date  we  receive  them,  but  credit  in  the  amount  of  the 
payment  will  not  be  available  to  you  for  10  calendar  days.
You  understand  and  agree  that  the  minimum  monthly 
payment  will  be  applied  first  to  the  card  balance  with  the 
lowest  APR  in  the  following  order:  finance  charges,  credit 
life  fees  (if  any),  cash  advance  balances,  and  purchase 
balances.You understand and agree that payments in excess 
of  the  minimum  monthly  payment  will  be  applied  first  to 
the  card  balance  bearing  the  highest  rate  of  interest,  then 
to each successive balance bearing the next highest rate of 
interest until the payment is exhausted.

7. DEFAULT. You will be in default if you fail to make any 
payment by the Payment Due Date shown on your Account 
statement, if you exceed the credit limit established for the 
Account, if you become insolvent or file bankruptcy, if you 
become incompetent or die, if a judgment or garnishment 
should  be  issued  against  any  of  your  property  including 
any of your Accounts with us, if we in good faith consider 
our or your obligations or your ability to repay or perform 
your obligations with us unsafe or insecure, if this Account 
or  any  other  account  at  PenFed  is  maintained  by  you  in  a 
manner that PenFed, in its sole discretion, deems contrary 
to  sound  financial  practice,  or  if  you  fail  to  live  up  to  any 
of  your  other  agreements  with  us,  to  include  any  PenFed 
policy  or  procedure.  Subject  to  law,  if  you  default  on 
this  Agreement,  we  can,  without  giving  anyone  notice, 
demand immediate payment of the remaining balance due 
including  but  not  limited  to  any  unpaid  finance  charges, 
late fees and any other charges due under this Agreement. 
You also agree our obligation for further credit extensions 
shall immediately end and we may terminate your Account 
without further notice to you. We can do this if you make 
any  false  or  misleading  statements  on  your  requests  for 
an  advance,  if  you  die,  file  for  bankruptcy  or  if  any  other 
creditor tries to seize your property. 

If  your  required  minimum  payment  has  not  been 
received  within  60  days  of  the  due  date,  any  balance, 
including  a  balance  transfer  with  a  promotional  rate,  will 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

increase  to  the  Penalty  Annual  Percentage  Rate  (Penalty 
APR). See Section 10 below for details of the Penalty APR. 
If  collection  is  necessary,  you  agree  to  pay  all  costs  of 
collection,  including  attorney’s  fees  and  court  costs,  in  an 
amount not more than 25 percent of the balance due.

8. LATE PAYMENT FEES. You will pay a late payment fee 
if the Minimum Payment Due is received 10 or more days 
past the due date. 

9. VARIABLE RATES. One or more APRs that apply to your 
account may vary with changes to the Prime Rate, which 
means  your  rate  can  increase.  We  calculate  the  APR  by 
adding a margin to the Prime Rate published in The Wall 
Street Journal. If The Wall Street Journal stops publishing 
the Prime Rate, we will select a similar reference rate and 
inform you on your billing statement or through a separate 
notice. The “Prime Rate” is the highest (U.S.) Prime Rate 
published  in  the  Money  Rates  section  of  The  Wall  Street 
Journal. A  margin is the percentage we  add  to  the  Prime 
Rate to calculate the APR. On the first Tuesday of the first 
full  week  of  each  month,  we  determine  what  the  Prime 
Rate  is  as  published  in  the  Wall  Street  Journal.  We  then 
add a margin as set forth in the Summary of Terms issued 
with  your  card  to  the  Prime  Rate  to  get  the  APR  for  the 
following month. If the APR increases, you will have to pay 
a higher periodic finance charge and may have to make a 
higher minimum payment.

10.  PENALTY  ANNUAL  PERCENTAGE  RATE.  If  your 
required minimum payment is not received within 60 days 
of the due date, your Account is subject to change to a Penalty 
APR. The Penalty APR will remain in place until you make 
three consecutive payments on or before the date that each 
payment  is  due.  In  addition,  your  balance  transfer  rate  for 
any  outstanding  balance  transfer  amounts  will  increase  to 
the Penalty APR. After three consecutive months of on-time 
payments, the rates will be reduced to the rates that applied 
prior to the increase, unless the temporary promotional rate 
has expired or the index for the variable rate has changed. 

11.  PROMOTIONAL  ANNUAL  PERCENTAGE  RATE.  At 
our option a special promotional rate may be offered from 
time to time. The specific terms will be provided at the time 
of the offer. Generally, the promotional APR will only apply 
to  select  transactions  (i.e.  purchases  or  balance  transfers) 
during the promotional period.  The APR rates for all other 
transactions,  not  outlined  in  the  promotion  as  eligible  for 
the  promotional  APR,  will  remain  unchanged.    If  your 
required minimum payment is not received within 60 days 
of the due date, any promotional APR and the periodic rate 
for  purchases,    cash  advances,  and  balance  transfers  will 
increase  to  the  Penalty  APR  until  3  consecutive  payments 
are made on time.

12. ACCOUNT CLOSURE. You or anyone jointly liable for the 
Account may terminate the Account at any time by notifying 
us orally or in writing. However, this will not relieve you or 
any of the other joint owners from liability for the repayment 
of  any  obligations  arising  from  the  use  of  the  Account.  In 
addition,  recurring  charges  from  a  third  party  vendor/
merchant will be charged to your account, even though you 
have  requested  cancellation  from  PenFed.  You  must  cancel 
the recurring charge with the third party vendor/merchant. 
Upon receipt of your notice, we may close your Account or 
suspend  your  account  privileges  at  any  time  without  prior 
notice. You must return all of the Cards to us upon request.

13.  THIRD  PARTY  DISCLOSURE.  We  may  disclose 
information  to  third  parties,  including  but  not  limited  to 
credit reporting agencies or merchants, about your account 
in  order  to  advise  such  third  parties  of  the  existence  or 
condition of your Account, to evaluate your current credit 
worthiness, or as otherwise provided by law. 

14.  GRANT  OF  SECURITY  INTEREST  IN  SHARES.  To 
protect  us  if  you  are  in  default  on  any  credit  extended  or 
cash  advanced  under  this  account,  you  have  granted  a 
security  interest  in  all  of  your  shares,  deposits,  payments 
and dividends which may be received, whether held jointly 
or  individually,  up  to  the  amount  of  your  outstanding 
balance.  The  foregoing  security  interest  includes  the  right 
to apply funds available to you in any jointly held account 
on your date of death. This does not include your individual 
retirement  account  (IRA).  We  may  take  all  the  shares 
needed by us to repay your credit extension or cash advance. 
If it is necessary to take all of your shares for the payment of 
this account, you understand your membership in PenFed 
may  end.  Collateral  securing  other  loans  with  the  credit 
union may also secure this loan.

Additional  notice  for  Visa  Secured  Cardholders:  In 
consideration  of  PenFed’s  issuing  you  a  card,  you  pledge 
your PenFed Share account as security for this line of credit. 
To  protect  us  if  you  are  in  default  on  any  credit  extended 
or  cash  advanced  under  this  account,  you  pledge  all  of 
your shares, deposits, payments and dividends which may 
be  received,  whether  held  jointly  or  individually,  up  to 
the  amount  of  your  outstanding  balance.  The  foregoing 
pledge includes the right to apply funds available to you in 
any  jointly  held  account  on  your  date  of  death.  This  does 
not include your individual retirement account (IRA). We 
may  take  all  the  shares  needed  by  us  to  repay  your  credit 
extension  or  cash  advance.  If  it  is  necessary  to  take  all  of 
your shares for the payment of this account, you understand 
your  membership  in  PenFed  may  end.  Collateral  securing 
other loans with the credit union may also secure this loan.

 15. CARD DISHONOR. If a merchant refuses the Card, we 
will not have any liability or responsibility. No cash refund 
will  be  made  to  or  accepted  by  you  with  respect  to  any 
adjustment for goods or services purchased. All adjustments 
will be made by credit to your PenFed Account by a properly 
executed credit voucher issued by the merchant.

16. ILLEGAL CARD USE. You agree that illegal use of your 
Card by cardholders(s) will be deemed an action of default 
and/or  breach  of  contract  and  your  account  and  other 
related  services  may  be  terminated  at  our  discretion.  You 
further  agree,  should  illegal  use  occur,  to  waive  any  right 
to  sue  PenFed  for  such  illegal  use  or  any  activity  directly 
or indirectly related to it. You also agree to indemnify and 
hold PenFed harmless from any suits or other legal action 
or liability, directly or indirectly, resulting from such illegal 
use. 

17.  AUTHORIZED  USER.  You  may  request  us  to  issue  a 
Card to an individual who has no financial responsibility 
under this Agreement. An Authorized User has the same 
access to your Account as you do, subject to any limitations 
we  may impose.  An Authorized User  has  no authority  to 
add or delete Cardholders, request a replacement Card or 
terminate  or  modify  this  Agreement.  You  may  terminate 
an Authorized User’s authority to access your Account at 
any time. To do this, you must return the Card to PenFed. 
You agree that you are responsible for all charges and cash 
advances made by an Authorized User, including charges 
made  before  the  Card  is  returned,  recurring  charges,  or 
charges  made  without  the  use  of  the  Card  initiated  by 
the  Authorized  User  after  termination  of  the  Authorized 
User’s access.

18. LIEN. You hereby appoint PenFed as your agent under 
a  special  power  of  attorney  as  well  as  give  your  express 
consent to enable us to charge against any balance in any of 
your accounts, including accounts on which you are a joint 
owner, to include any otherwise statutorily protected funds 
that may not otherwise be available by legal process, to pay 
any indebtedness or other outstanding financial obligation 
owed by you or any person who is listed as a joint owner on 
your accounts, including a deceased joint owner. This does 
not  include  your  IRA  or  any  other  account  for  which  this 

provision is not permitted. We may take such action without 
further notice to you or any joint owner. In regard to those 
funds  that  have  a  statutory  protection,  you  understand 
that  you  may  withdraw  the  special  power  of  attorney  and 
consent  for  PenFed  to  apply  such  funds  to  pay  any  such 
indebtedness  by  notifying  us  in  writing.  If  your  agency 
appointment  or  consent  is  withdrawn,  PenFed  may  in  its 
sole discretion terminate any and all services that you have 
with the credit union.

19.  ISSUANCE/USE  OF  CARD.  Upon  receipt  of  the 
Card(s)  you  and  all  other  cardholders  agree  that  you  will 
sign  the  signature  panel  on  the  back  of  the  Card(s).  The 
Card  remains  the  property  of  Pentagon  Federal  Credit 
Union  and  may  be  revoked  without  notice  at  any  time. 
The  Card  must  be  surrendered  to  us  upon  demand  or 
revocation. If we employ an agent to obtain the Card your 
Account will be charged with any related fees. No expired, 
revoked  or  otherwise  invalid  Card  shall  be  used  to  obtain 
or attempt to obtain credit. You will remain responsible to 
pay the amount you owe us according to the terms of this 
Agreement. Cancellation of the Account will also terminate 
any other products or services offered in conjunction with 
it.  However,  recurring  charges  from  a  third  party  vendor/
merchant will be charged to your Account, even though you 
have requested cancellation. You must cancel the recurring 
charge with the third party merchant/vendor. 

20.  ISSUANCE/USE  OF  CHECKS.  If  we  issue  you  checks, 
these checks are treated as cash advances when they are used 
and presented for payment. We may refuse to issue or reissue 
and may also terminate, limit or modify the use of the checks 
without notice to you, and you agree to surrender the checks 
upon  our  demand  or  upon  learning  of  our  cancellation  or 
withdrawal  of  the  checks.  Use  of  checks  or  other  methods 
of access for kiting or similar activity is an action of default. 
The checks at all times remain the property of PenFed and 
we  may  repossess  them  without  the  use  of  court  process. 
All of the terms and conditions of this Agreement apply to 
the use of the checks. Only check blanks and other methods 
authorized by PenFed now and in the future may be used to 
obtain funds from your Account. If so authorized by PenFed, 
your use of a personal identification number (PIN) for such 
purpose shall constitute your signature. Paid checks become 
our  property  and  will  not  be  returned  to  you.  Copies  may 
be  provided,  if  requested,  for  a  nominal  fee  for  each  item. 
Should we decline to pay any check, or if you instruct us not 
to pay a check,  PenFed shall not be liable, except for gross 
negligence,  for  any  action  it  takes  regarding  payment  or 
nonpayment of a check. If we decline to pay a check, a charge 
may be made to your account in the amount indicated on our 
current Schedule of Service Fees brochure, which is available 
at any branch office, on request, or at PenFed.org. You will 
not date any check later than the date that you write it. If you 
do  and  the  check  is  presented  for  payment  before  its  date, 
PenFed, in its sole discretion may return it unpaid, or pay it. 
If we pay it, we will charge the Account. PenFed may, in its 
sole discretion, pay a check which has a date more than six 
months old.

21.  ANNUAL  FEE.  You  may  be  required  to  pay  a 
nonrefundable  annual  fee  for  each  Account  you  have 
with  us  for  which  a  Card  is  issued.  You  will  pay  only  one 
annual  fee,  even  if  more  than  one  Card  is  issued  for  your 
Account. The fee will be charged annually to your Account. 
This  charge  will  appear  on  your  periodic  statement 
for  the  billing  cycle  when  it  first  becomes  effective. 

22.  FOREIGN  TRANSACTIONS.  Purchases  and  cash 
advances  made  in  foreign  currencies  will  be  debited  from 
your  account  in  U.S.  dollars.  The  exchange  rate  between 
the transaction currency and the billing currency used for 
processing  international  transactions  is  either  a  wholesale 
market rate or the government mandated rate in effect one 
day prior to the date processed by Visa and may include an 
international transaction fee. 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

23. DEBT PROTECTION PLAN. Your purchase of the Debt 
Protection  Plan  (“Plan”)  is  optional.  Whether  or  not  you 
purchase  this  protection  will  not  affect  your  application 
for credit or the terms of any existing credit agreement you 
have with PenFed. If you do purchase Debt Protection you 
may  cancel  it  at  any  time  by  notifying  us  in  writing.  You 
understand that you may rescind this plan within 30 days 
after  the  date  your  Debt  Protection  becomes  effective.  If 
you  rescind,  any  premiums  you  have  already  paid  will  be 
credited to your account. We can terminate this Agreement 
by  giving  you  notice  at  least  30  days  in  advance  of  the 
termination.  The  premium,  method  of  calculation  and 
assessment  are  subject  to  change.  If  these  terms  change 
we  will  provide  written  notice  before  the  change  goes 
into effect. Premiums will accrue on a daily basis and will 
be  billed  to  your  account  monthly.  Complete  details  of 
this  optional  Debt  Protection  are  included  in  The  Debt 
Protection Plan Program Agreement which you will receive 
upon enrollment.

24. TRAVEL ACCIDENT INSURANCE. We agree to provide 
you with Travel Accident Insurance at no direct cost to you. 
You,  your  spouse  and  unmarried  dependent  children  will 
be automatically insured against accidental bodily injuries 
or  death  while  riding  in  any  aircraft  or  land  or  water 
conveyance operated by a common carrier licensed to carry 
passengers for hire provided the full travel fare(s) has been 
charged to your Account. Death benefits will be paid to the 
estate  of  the  insured;  all  other  benefits  will  be  paid  to  the 
insured.  This  insurance  is  subject  to  cancellation  without 
prior notice. You understand and agree that the Certificate 
of  Insurance  controls  all  insurance  terms  and  conditions 
to the exclusion of any statements made in this Agreement 
regarding limitations, exclusions, and claims procedures.

25.  ASSIGNABILITY  OF  ACCOUNT.  You  agree  that 
PenFed may at any time sell, transfer or assign your account.

26.  LOST/STOLEN  CARD.  You  are  responsible  for  the 
possession  and  use  of  the  Card  and  must  maintain  the 
confidentiality  of  the  PIN  we  may  assign  you.  You  will 
notify us at once if you believe your Card has been lost or 
stolen,  or  if  you  have  reason  to  believe  the  Card  is  being 
used without your permission. You may notify us by calling 
800-556-LOST  or  402-399-3600  collect  from  overseas,  or 
by writing to us at Card Services, Pentagon Federal Credit 
Union, Box 456, Alexandria, VA 22313-0456. 

27.  LIABILITY  FOR  UNAUTHORIZED  USE.    If  your 
statement  has  an  error  or  a  charge  you  did  not  authorize, 
you  must  tell  us  in  writing  within  60  days  after  you  get 
that  statement.  You  must  follow  all  instructions  on  that 
statement. If we find no error after investigation, you owe us 
the original amount plus applicable interest and fees.

You  are  liable  for  all  authorized  use  of  any  Card  issued 
under  the  Agreement  regardless  of  the  credit  limit  or  the 
party using it. You agree to notify us immediately by calling 
800-556-LOST  or  402-399-3600  collect  from  overseas,  or 
writing  to  us  at  Card  Services,  Pentagon  Federal  Credit 
Union, Box 456, Alexandria, VA 22313-0456 if you suspect 
unauthorized use of the Card, and to cooperate with us in the 
recovery of any amounts advanced based on unauthorized 
use. You will not be liable for any unauthorized use of the 
card.

28.  STATEMENTS.  We  will  bill  you  monthly,  on  a  date 
selected  by  us,  for  amounts  due  under  this  Agreement.  If 
you elect to receive your credit card statement electronically, 
you will receive an email alerting you when your statement 
is ready to be viewed online. There is a $1 fee for each paper 
statement  received.  Failure  to  receive  a  monthly  statement 
or  electronic  statement  notification  does  not  relieve  you 
from  making  any  required  minimum  payment.  Upon 
receipt  of  each  periodic  statement,  you  should  examine  it 
and immediately notify us in writing of any transaction you 
believe to be in error. If your Account is a joint account, we 

can send statements and notices to either of you. You agree 
to notify us promptly of any change in your name, address, 
or email address.

29.  PAYMENT  SKIP  OPTION.  At  our  option,  we  may 
provide  for  a  payment  skip  option,  which  means  that  you 
may  be  allowed  to  skip  making  the  minimum  periodic 
payment  for  specified  billing  cycles.  If  you  accept  this 
payment skip option, we will continue to apply the finance 
charge  as  disclosed  above,  but  no  late  payment  fees  will 
apply to the skipped payment. For the billing cycle following 
a  skipped  payment,  all  the  terms  and  conditions  of  this 
Agreement  (including  minimum  periodic  payment  and 
applicable late payment fees) will continue to apply.

30. OTHER AGREEMENTS. All the terms and conditions 
of  any  other  agreement  between  us  and  you  and/or  any 
other  institution  that  is  part  of  a  network  of  automated 
teller  machines  (ATMs)  in  which  we  participate,  and  any 
applicable  rules  and  regulations,  also  apply  to  use  of  the 
Card. There may be minimum and/or maximum limits on 
the  amount  of  a  cash  advance  dispensed  from  electronic 
terminals  which  accept  the  Card.  All  of  the  transactions 
made by electronic means are subject to verification by us, 
and any checks or other items deposited for collection may 
be deemed to be received and any other transaction may be 
deemed to occur on our next business day. You understand 
that transactions may be limited in some areas. 

You  agree  that  we  do  not  waive  our  rights  under  this 
Agreement  if  we  fail  to  assert  them.  The  Agreement 
binds  and  benefits  us  and  our  successors  and  assigns  and 
binds  you,  your  estate  and  your  personal  representatives. 

31.  MILITARY  LENDING  ACT.  Federal 
law  provides 
important protections to members of the Armed Forces and 
their  dependents  relating  to  extensions  of  consumer  credit. 
In  general,  the  cost  of  consumer  credit  to  a  member  of  the 
Armed Forces and his or her dependent may not exceed an 
annual percentage rate of 36 percent. This rate must include, 
as  applicable  to  the  credit  transaction  or  account:  The  cost 
associated with credit insurance premium; fees for ancillary 
products  sold  in  connection  with  the  credit  transaction; 
any application fee charged (other than certain applications 
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, please 
contact PenFed at 800-247-5626.

32.  APPLICABLE  LAW.  This  Agreement  and  your  Card 
and Additional Cards, and all questions about their legality, 
enforceability and interpretation, are governed by the laws of 
the Commonwealth of Virginia, USA.

YOUR  BILLING  RIGHTS  (Keep  this  notice  for  future 
use.)  This  notice  tells  you  about  your  rights  and  our 
responsibilities under the Fair Credit Billing Act. 

WHAT  TO  DO  IF  YOU  FIND  A  MISTAKE  ON  YOUR 
STATEMENT.  If  you  think  there  is  an  error  on  your 
statement, write to us at: Card Services, Pentagon Federal 
Credit  Union,  Box  456,  Alexandria,  VA  22313-0456. 
You may also contact us on the Web via our Secure Online 
Message Center at: PenFed.org 
In your letter give us the following information:
• Account information: Your name and account number.
• Dollar amount: The dollar amount of the suspected error.
•  Description  of  problem:  If  you  think  there  is  an  error  on 
your bill, describe what you believe is wrong and why you 
believe it is a mistake.

You must contact us:
• Within 60 days after the error appeared on your statement.
• At least 3 business days before an automated payment is 
scheduled,  if  you  want  to  stop  payment  on  the  amount 
you think is wrong.

You  must  notify  us  of  any  potential  errors  in  writing  or 
electronically.  You  may  call  us,  but  if  you  do  we  are  not 
required  to  investigate  any  potential  errors  and  you  may 

have to pay the amount in question.

WHAT  WILL  HAPPEN  AFTER  WE  RECEIVE  YOUR 
LETTER.  When  we  receive  your  letter,  we  must  do  two 
things:
1. Within 30 days of receiving your letter, we must tell you 
that  we  received  your  letter.  We  will  also  tell  you  if  we 
have already corrected the error.

2.  Within  90  days  of  receiving  your  letter,  we  must  either 
correct the error or explain to you why we believe the bill 
is correct.

While  we  investigate  whether  or  not  there  has  been  an 

error:

• We cannot try to collect the amount in question, or report 

you as delinquent on that amount.

• The charge in question may remain on your statement, and 
we may continue to charge you interest on that amount.
• While you do not have to pay the amount in question, you 

are responsible for the remainder of your balance.

• We can apply any unpaid amount against your credit limit.
After  we  finish  our  investigation,  one  of  two  things  will 

happen:

• If we made a mistake: You will not have to pay the amount 
in  question  or  any  interest  or  other  fees  related  to  that 
amount.

• If we do not believe there was a mistake: You will have to 
pay the amount in question, along with applicable interest 
and fees. We will send you a statement of the amount you 
owe and the date payment is due. We may then report you 
as delinquent if you do not pay the amount we think you 
owe.

If  you  receive  our  explanation  but  still  believe  your  bill  is 
wrong, you must write to us within 10 days telling us that 
you still refuse to pay. If you do so, we cannot report you as 
delinquent without also reporting that you are questioning 
your  bill.  We  must  tell  you  the  name  of  anyone  to  whom 
we  reported  you  as  delinquent,  and  we  must  let  those 
organizations  know  when  the  matter  has  been  settled 
between us. If we do not follow all the rules above, you do 
not have to pay the first $50 of the amount you question even 
if your bill is correct. 

YOUR RIGHTS IF YOU ARE DISSATISFIED WITH YOUR 
CREDIT  CARD  PURCHASES.  If  you  dissatisfied  with  the 
goods or services that you have purchased with your credit 
card and you have tried in good faith to correct the problem 
with  the  merchant,  you  may  have  the  right  not  to  pay  the 
remaining amount due on the purchase. 
To  use  this  right,  all  of  the  following  must  be  true:
1.  The  purchase  must  have  been  made  in  your  home  state 
or within 100 miles of your current mailing address, and 
the purchase price must have been more than $50. (Note: 
Neither of these is necessary if your purchase was based 
on an advertisement we mailed to you, or if we own the 
company that sold you the goods or services.)

2.  You  must  have  used  your  credit  card  for  the  purchase. 
Purchases  made  with  cash  advances  from  an  ATM  or 
with  a  check  that  accesses  your  credit  card  account  do 
not qualify.

3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied 
with the purchase, contact us in writing or electronically at: 
Card Services, Pentagon Federal Credit Union, Box 456, 
Alexandria, VA 22313-0456, or online at PenFed.org.
While  we 
investigate,  the  same  rules  apply  to  the 
disputed  amount  as  discussed  above.  After  we  finish  our 
investigation,  we  will  tell  you  our  decision.  At  that  point, 
if we think you owe an amount and you do not pay, we may 
report you as delinquent.

Information about this card is accurate as of October 
2017  but  may  have  changed  since  then.  To  find  out 
what may have changed, please go to PenFed.org or call  
800-247-5626.

Form 1203-RAP Web  10/17  

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS