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AMA Penfed PreMiuM trAvel rewArds 
AMericAn exPress® cArd 

Cardholder Agreement  
and Disclosure Statement 

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 are 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 adver-
tisement 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  pur-
chase,  contact  us  in  writing  or  electronically  at:  Card  Services,  Pentagon  Fed-
eral 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 July 2013 but may have changed since then. To find out what may have 
changed, please go to PenFed.org or call 866-386-7254.

AMEX Form 1218-AMA         07/13            POD         

  FDR M-109428 

definitions.  The  “Card”  means  the  Pentagon  Federal  Credit  Union  (PenFed) 
American  Express  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.  An 
Authorized User is an individual receiving a Card, but who has no responsibility for 
payment  of  the  Account.  The  words  “you”,  “your”  and  “cardmember”  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 assign-
ees. Unless otherwise stated, “Account” means your Card account with us.

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 will 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. 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  cardmember.  You  also  agree  that  we  can  change  the  terms  of  this  Agree-
ment at any time by adding, deleting, or modifying any provision of the Agreement. 
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 ter-
mination, 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 purchas-
es, as the Account will be closed (if it is not already closed). Any rewards points or 
miles you have earned 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 per-
son, 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  MAN-
NER AND WILL BE IN AMOUNTS NOT IN EXCESS OF THOSE PERMIT-
TED 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  month-
ly 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 out-
standing. (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.

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 pay-
ments will be posted to your account as of the date we receive them provided we receive 
them before 5:00  PM 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 process-
ing 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 Pentagon Federal’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 payments 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. You understand and agree 
that payments will be applied in the following order: (1) late payment fee; (2) finance 
charge; (3) annual membership fee (if any); (4) paper statement fee (if any); (5) credit 
life fee (if any); (6) previous balance cash advances; (7) previous balance purchases; 
(8) new cash advances; and (9) new purchases.

7. defAult. You will be in default if you fail to make any payment on time, 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, 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 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. 

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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. Twice a year, on the Tuesday in the last full week before 
January 1 and the Tuesday in the last full week before July 1, we determine what 
the Prime Rate is, as published in the Wall Street Journal. We then add a margin of 
10.74% to the Prime Rate to get the APR. 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 consecu-
tive payments on or before the date that each payment is due. In addition, your bal-
ance 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 promo-
tional rate has expired or the index for the variable rate has changed. 

11. ProMotionAl AnnuAl PercentAge rAte. At our option a special pro-
motional 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 termi-
nate 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. 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 
about your account in order to advise third parties, such as American Express Travel 
Related Services Company, Inc., American Express Global Network Services, credit 
reporting agencies or merchants of the existence or condition of your Account, to 
evaluate your current credit worthiness or as otherwise provided by law. 

14. 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 out-
standing 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 re-
pay 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 card-holders(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 activ-
ity 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, result-
ing 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 replace-
ment 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 Au-
thorized 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 de-
ceased 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 Pen-
Fed 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 card-
holders 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 learn-
ing 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 cur-
rencies 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 American Express and may include an 
international transaction fee. 

23. MeMber Protection PlAn. Your  purchase  of  the  Member  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 Pen-
Fed.  If  you  do  purchase  this  Plan  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 Plan 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. You understand that the Plan protects 
only you as the primary Member-Borrower against protected events while you are en-
rolled in the Plan. Co-borrowers, co-signers, guarantors and additional card holders 
are  not  eligible  for  protection.  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 Plan are included in The 
Member Protection Plan Program Agreement which you will receive upon enrollment.

24. trAvel  Accident insur Ance.  We  agree  to  provide  you  with  Travel  Ac-
cident 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 car-
rier  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 con-
trols 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  1-800-556-LOST  OR  402-399-3600  collect  from  overseas,  or 
by  writing  to  us  at  PenFed  Card  Services,  Box  456,  Alexandria,  VA  22313-0456. 

27. liAbility for unAuthorized use. 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 using the contact information listed in “Lost/
Stolen Card”, above) 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 elec-
tronically, you will receive an e-mail 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 e-mail 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 regula-
tions, 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. 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 inter-

est 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