IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

VISA, VISA SECURED AND MASTERCARD

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. An Autho-
rized 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 in-
dividually 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. Unless otherwise stated, “Ac-
count” 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,  us-
ing 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  ac-
cept charges that would cause you to exceed your authorized 
credit limit. Any extension of credit to you, made or hon-
ored 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. 

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 Agree-
ment. You are responsible for all transactions made to your 
account after termination, unless the transactions were un-
authorized. 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 be-
tween 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 out-
standing 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 bill-
ing 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  calcu-
lated 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  Ac-
count  and  continue  so  long  as  such  amounts  remain  out-
standing. (2) A finance charge will be imposed on the aver-
age 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 state-
ment. Your payment by mail must be a check or money or-
der 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 ac-
count  as  of  the  date  we  receive  them  provided  we  receive 
them before 5:00 p.m. at the address indicated on your peri-
odic 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 re-
ceived  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 tele-
phone service, member service representatives, or our web-
site  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  “re-
turned  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  pay-
ment  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 bal-
ances.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 on time, if you exceed the credit limit estab-
lished for the Account, if you become insolvent or file bank-
ruptcy, 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 Pen-
Fed 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  includ-
ing 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 im-
mediately 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  re-
ceived 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 Sec-
tion 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 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

by  adding  a  margin  to  the  Prime  Rate  published  in  The 
Wall Street Journal. If The Wall Street Journal stops pub-
lishing  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 the month, we determine what the 
Prime Rate is as published in the Wall Street Journal. We 
then  add  a  margin  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. PenFed Platinum Re-
wards Visa Signature® APR: Prime plus 6.74%. PenFed 
Platinum Cash Rewards APR: Prime plus 6.74%. PenFed 
Platinum Rewards APR: Prime plus 6.74%. Visa Secured 
APR:  Prime  plus  10.74%.  Visa  Gold  APR:  Prime  plus 
9.24%. MasterCard APR: Prime plus 10.74%. Visa Classic 
APR: Prime plus 10.74%. 

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 trans-
fers) 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 in-
crease 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 noti-
fying us orally or in writing. However, this will not relieve you 
or any of the other joint owners from liability for the repay-
ment 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 in-
formation  to  third  parties  about  your  account  in  order  to 
advise  third  parties,  such  as  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 extend-
ed  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 exten-
sion  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 con-
sideration 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 adjust-
ments 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 de-
fault 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 li-
ability, 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 responsibil-
ity  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, recur-
ring 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  un-
der 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 under-
stand 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 ap-
pointment 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 other-
wise invalid Card shall be used to obtain or attempt to ob-
tain credit. You will remain responsible to pay the amount 
you owe us according to the terms of this Agreement. Can-
cellation of the Account will also terminate any other prod-
ucts or services offered in conjunction with it. However, re-
curring 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  sur-
render 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 ac-
tion 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. Cop-
ies 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 indicat-
ed 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  non-
refundable  annual  fee  for  each  Account  you  have  with 
us  for  which  a  Card  is  issued.  You  will  pay  only  one  an-
nual  fee,  even  if  more  than  one  Card  is  issued  for  your 
Account.  The  fee  will  be  charged  annually  to  your  Ac-
count.  This  charge  will  appear  on  your  periodic  state-
ment  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. 

23. CREDIT INSURANCE PLAN. Your purchase of the 
Credit Insurance 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 Credit Insurance 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  Credit  Insurance  becomes  effective.  If 

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IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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 termi-
nation. 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 Credit Insurance 
are included in The Credit Insurance Plan Program Agree-
ment 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 in-
juries 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 con-
fidentiality of the PIN we may assign you. You will notify 
us  at  once  if  you  believe  your  Card  has  been  lost  or  sto-
len, 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  state-
ment. 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 un-
der 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  unauthor-
ized use of the Card, and to cooperate with us in the recov-
ery  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  imme-
diately 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 pay-
ment 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  condi-
tions  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.  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 responsibili-
ties 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 state-
ment,  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 Mes-
sage 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 elec-
tronically. 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 er-

ror:

• 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 organiza-
tions  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  dissatis-
fied 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 dissatis-
fied with the purchase, contact us in writing or electronical-
ly 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  investiga-
tion, 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 June 2015 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 Web  06/15

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS