CARDHOLDER AGREEMENT

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  cardholder,  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 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.

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.

IMPOSED 
5. FINANCE  CHARGES  WILL  BE 
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) There is no grace period 
on cash advances. 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 outstanding each day during the billing 
cycle, divided by the number of days in the billing 
cycle. The sum of cash advances is determined by 
including new cash advances and deducting any 
payments  or  credits  and  excluding  any  unpaid 
finance charge. 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. The 
monthly  periodic  rate  is  the  yearly  interest  rate 
divided by 12.

C. BALANCE  TRANSFERS.  (1)  There  is  no  grace 
period  on  balance  transfers.  Finance  charges 
accrue  on  all  regular  or  promotional  balance 
transfer  amounts  from  the  date  posted  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 
balance transfers, which is the sum of the balance 
transfers outstanding each day during the billing 
cycle, divided by the number of days in the billing 
cycle. The sum of balance transfers is determined 
by including new balance transfers and deducting 
any payments or credit and excluding any unpaid 
finance  charge.  A  balance  transfer  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 each balance transfer by its monthly 
periodic  rate.  The  monthly  periodic  rate  is  the 
yearly  interest  rate  divided  by  12.  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 

6. PAYMENTS.  A  payment  delivered  by  physical 
mail must be sent to the address on your periodic 
statement and be received by 5:00 pm, Monday 
through  Friday,  excluding  holidays,  to  receive 
same  day  credit.  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, 
accompanied by the payment voucher from your 
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.  We  may  delay  the  availability  of 
credit until we confirm your payment has cleared.
through  our 
Payments  made  electronically 
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 
returned  payment  fee  may  be  assessed  to  your 
Account1. 
Your  account  may  have  purchases,  cash 
advances,  and  balance  transfers  with  different 
APRs.  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, balance transfers 
and purchase balances. 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.  If  your  card  balance  consists  of 
multiple  same-rate  APRs  the  payment  will  be 
allocated in direct proportion to the outstanding 
balances  regardless  of  the  payment  due  date 
or  any  promotional  APR  expiration  date.  We 
may  reject  and  return  any  payment  that  creates 
a  credit  balance  on  your  Account.  Any  credit 
balance  we  allow  may  not  be  available  until 
we  confirm  that  your  payment  has  cleared.  We 
may  reduce  the  amount  of  any  credit  balance 
by any new charges. You may write or call us to 
request a refund of any available credit balance. 
If  a  credit  balance  remains  on  your  account  for 
6  months  and  the  amount  is  $1  or  more,  we  will 
automatically refund it to you, otherwise it will be 
removed.
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 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  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 may be charged a 
late payment fee if the Minimum Payment Due is 
received 10 or more days past the due date1.
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  month¹.  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 
may be 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 changed¹.

PERCENTAGE 
11.  PROMOTIONAL  ANNUAL 
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. CASH  AND  CASH-LIKE  TRANSACTIONS. 
The  following  transactions  will  be  treated  as 
cash  advances  when  conducted  with  your  Card, 
account  number,  checks  or  mobile  device:  any 
person  to  person  transfers  or  transfers  to  any 

PenFed or non-PenFed account, bill pay, overdraft 
protection, ATM or over the counter advances, the 
purchase  of  travelers  checks,  foreign  currency, 
money  orders,  bail  bonds,  cryptocurrency,  wire 
transfers,  lottery  tickets,  casino  gaming  chips, 
race track wagers or similar betting transactions; 
and any payment using a third party service.

13. 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.

14. 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.

include  your 

15. 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 
individual  retirement 
accounts  (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  accounts 
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.

16. 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.

17. ILLEGAL,  EXCESSIVE,  OR  ABUSIVE  CARD 
USE.  You  agree  that  illegal  use  of  your  Card, 
or  behavior  deemed  by  us  to  be  excessive  or 
abusive  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, excessive, or abusive use occur, to 
waive any right to sue PenFed for such 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 use.

18. 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.

19. 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.

20. 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.

21. 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.
22. 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 effective¹.
23. 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.
24. 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.
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.  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  800-247-5626  or 
541-225-6700,  or  by  writing  to  us  at:  Pentagon 
Federal Credit Union, PO 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  800-247-5626 
or  541-225-6700,  or  writing  to  us  at:  Pentagon 
Federal Credit Union, PO 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 may be a $1 fee for each paper 
statement received¹. 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. 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.

law 
32. MILITARY  LENDING  ACT.  Federal 
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.

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:    Pentagon  Federal 
Credit Union, PO 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  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 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:  Pentagon  Federal 
Credit  Union,  PO  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. 

____________________________________________________________________________________________
¹  Refer  to  the  Summary  of  Terms  issued  with  your 
Card

Information  about  this  Card  is  accurate  as  of 
December  2021  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 (12/21) © 2021 PenFed