IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

VISA PROMISE

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 Authorized User is an indi-
vidual receiving a Card, but who has no responsibility for pay-
ment 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. 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 ap-
ply. 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 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 cred-
it limit at any time. We are not obligated to accept charges that 
would cause you to exceed your authorized credit limit. Any ex-
tension 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 add-
ing, deleting, or modifying any provision of the Agreement. 

Termination  of  the  account  by  you  or  PenFed  will  not  af-
fect 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 outstand-
ing balance of the Account is paid in full, unless you are in de-
fault. Your card will no longer be available for use for new trans-
actions, including purchases, as the Account will be closed (if it 
is not already closed.) If you do not notify us of your decision to 
terminate the account by the date stated in any notice we pro-
vide, 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 appli-
cation  whenever  we  request  one.  You  expressly  authorize  any 
person, partnership, association, firm, corporation or consumer 
reporting  agency,  upon  our  request,  to  furnish  us  with  infor-
mation 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  FOL-
LOWING MANNER AND WILL BE IN AMOUNTS NOT IN 
EXCESS OF THOSE PERMITTED BY LAW:

(A)  PURCHASES:  (1)  No  finance  charge  will  be  imposed  dur-
ing the next billing cycle (defined as the time interval between 
regular  monthly  billing  statement  dates)  if  you  pay  the  entire 
new balance shown on the current periodic statement and we 
receive your payment on or before the payment due date shown 
on the statement. (2) In all other cases, a finance charge will be 
imposed  based  on  the  average  daily  balance  of  all  purchases 
and  debit  adjustments,  hereafter  referred  to  as  purchases. The 
average daily balance is the sum of all outstanding purchases, 
which is determined by including new purchases and deducting 
payments or credits and excluding any unpaid finance charge 
for your Account on each day of the billing cycle divided by the 
number  of  days  in  the  billing  cycle.  A  purchase  appearing  on 
the periodic statement is considered a part of the outstanding 
balance from the date of posting. (3) The amount of the finance 
charge is calculated by multiplying the average daily balance for 
purchases by the monthly periodic rate. The monthly periodic 
rate is the yearly interest rate divided by 12.

(B) CASH ADVANCES. (1) Finance charges accrue on all cash ad-
vance amounts from the date charged to your Account and con-
tinue so long as such amounts remain outstanding. (2) A finance 
charge will be imposed on the average daily balance of cash ad-
vances, 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 calcu-
lated by multiplying the average daily balance for cash advances 
by the monthly periodic rate.

(C) BALANCE TRANSFERS. Balance transfers are treated as cash 
advances.  There  is  no  grace  period  for  payments  on  balance 
transfers.  If you transfer a balance from another financial insti-
tution to us, you will immediately incur finance charges at the 
regular or promotional APR available at the time of the balance 
transfer and on purchases at the purchase APR.  For instance if 
you transfer $1,000 at a promotional rate of 0% APR and then 
make a purchase of $200, you will immediately accrue finance 
charges at the purchase rate, forgoing the grace period.  To avoid 
finance charges on new purchases after you transfer a balance, 
you must pay all balances on your account including any bal-
ances that you transfer in full by the due date.

6. PAYMENTS. A payment delivered by regular U.S. mail must 
be  sent  to  the  address  indicated  on  your  periodic  statement. 
Your payment by mail must be a check or money order in U.S. 
dollars with your account number on the check or money order 
and drawn on a U.S. financial institution, and be accompanied 
by  the  payment  voucher  from  your  statement.  Write  your  ac-
count number on your check or money order. All such payments 
will  be  posted  to  your  account  as  of  the  date  we  receive  them 
provided we receive them before 5:00 p.m. at the address indi-
cated  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  pay-
ment 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 avail-
able to you for 10 calendar days. Payments made electronically 
through our automated telephone service, member service rep-
resentatives,  or  our  website  will  be  subject  to  any  processing 

times disclosed with those payments. 

Your minimum payment due is the greater of $15 or 2% of 
the  new  balance  plus  the  past  due  amount,  if  any,  and/or  all 
amounts in excess of the authorized credit line/limit shown on 
the periodic statement. If the new balance does not exceed $15, 
only the new balance total is due and is shown as the minimum 
payment  due.  All  past  due  or  over  limit  amounts  are  due  and 
must  be  fully  paid  immediately  upon  notification.  You  may, 
however, pay the total amount due, which is shown as the new 
balance, or you may pay any additional amount you wish over 
the minimum payment due.

If your payment is not honored or we must return it to you 
because it could not be processed, a charge may be made to your 
account  in  the  amount  indicated  for  “returned  payment”  on 
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 ac-
count as of the date we receive them, but credit in the amount 
of the payment will not be available to you for 10 calendar days.
You understand and agree that the minimum monthly pay-
ment  will  be  applied  first  to  the  card  balance  with  the  lowest 
APR in the following order: finance charges, credit life fees (if 
any),  cash  advance  balances,  and  purchase  balances.You  un-
derstand  and  agree  that  payments  in  excess  of  the  minimum 
monthly payment will be applied first to the card balance bear-
ing 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 pay-
ment on time, if you exceed the credit limit established for the 
Account, if you become insolvent or file bankruptcy, if you be-
come 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 obli-
gations 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 ob-
ligation 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 collection is necessary, you agree to pay all costs of collec-
tion, including attorney’s fees and court costs, in an amount not 
more than 25 percent of the balance due.

8.  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 mar-
gin 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 the month, we determine what the Prime Rate 
is as published in the Wall Street Journal. We then add a margin 
as set forth in the Summary of Terms issued with your card to 
the Prime Rate to get the APR for the following month. If the 
APR increases, you will have to pay a higher periodic finance 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

charge and may have to make a higher minimum payment.

9.  PROMOTIONAL  ANNUAL  PERCENTAGE  RATE.  At 
our option a special promotional rate may be offered from 
time to time. The specific terms will be provided at the time 
of the offer. Generally, the promotional APR will only apply 
to  select  transactions  (i.e.  purchases  or  balance  transfers) 
during the promotional period. The APR rates for all other 
transactions,  not  outlined  in  the  promotion  as  eligible  for 
the promotional APR, will remain unchanged. We may end 
your promotional Balance Transfer APR if we do not receive 
your payment within 60 days of the due date.

10.  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 can-
cellation  from  PenFed.  You  must  cancel  the  recurring  charge 
with the third party vendor/merchant. Upon receipt of your no-
tice, we may close your Account or suspend your account privi-
leges at any time without prior notice. You must return all of the 
Cards to us upon request.

11.  THIRD  PARTY  DISCLOSURE.  We  may  disclose  informa-
tion 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. 

12. PLEDGE OF SHARES. 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 ad-
vance. 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. 

13.  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.

14.  ILLEGAL  CARD  USE.  You  agree  that  illegal  use  of  your 
Card by cardholders(s) will be deemed an action of default and/
or  breach  of  contract  and  your  account  and  other  related  ser-
vices  may  be  terminated  at  our  discretion.  You  further  agree, 
should  illegal  use  occur,  to  waive  any  right  to  sue  PenFed  for 
such illegal use or any activity directly or indirectly related to 
it. You also agree to indemnify and hold PenFed harmless from 
any suits or other legal action or liability, directly or indirectly, 
resulting from such illegal use. 

15.  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  Card-
holders, request a replacement Card or terminate or modify this 
Agreement.  You  may  terminate  an  Authorized  User’s  author-
ity  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.

16.  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  ac-
counts, 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, includ-
ing 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  protec-
tion, 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.

17.  ISSUANCE/USE  OF  CARD.  Upon  receipt  of  the  Card(s) 
you and all other cardholders agree that you will sign the sig-
nature 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. How-
ever, 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. 

18.  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 with-
drawal 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 con-
ditions 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. 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.  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.

19.  FOREIGN  TRANSACTIONS.  Purchases  and  cash  advanc-
es made in foreign currencies will be debited from your account 
in U.S. dollars. The exchange rate between the transaction cur-
rency 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.

20. DEBT PROTECTION PLAN. Your purchase of the Debt Pro-
tection 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 Protec-
tion 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 as-
sessment  are  subject  to  change.  If  these  terms  change  we  will 
provide written notice before the change goes into effect. Pre-
miums  will  accrue  on  a  daily  basis  and  will  be  billed  to  your 
account monthly. Complete details of this optional Debt Protec-
tion are included in The Debt Protection Plan Program Agree-
ment which you will receive upon enrollment.

21.  ASSIGNABILITY  OF  ACCOUNT.  You  agree  that  PenFed 
may at any time sell, transfer or assign your account.

22.  LOST/STOLEN  CARD.  You  are  responsible  for  the  posses-
sion and use of the Card and must maintain the confidentiality 
of the PIN we may assign you. You will notify us at once if you 
believe your Card has been lost or stolen, or if you have reason 
to believe the Card is being used without your permission. You 
may notify us by calling 800-556-LOST or 402-399-3600 collect 
from  overseas,  or  by  writing  to  us  at  Card  Services,  Pentagon 
Federal Credit Union, Box 456, Alexandria, VA 22313-0456. 

23.  LIABILITY  FOR  UNAUTHORIZED  USE.  If  your  state-
ment  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 
fees.  
     You are liable for all authorized use of any Card issued under 
the Agreement regardless of the credit limit or the party using 
it. You agree to notify us immediately by calling 800-556-LOST 
or 402-399-3600 collect from overseas, or writing to us at Card 
Services, Pentagon Federal Credit Union, Box 456, Alexandria, 
VA 22313-0456 if you suspect unauthorized use of the Card, and 
to cooperate with us in the recovery of any amounts advanced 
based on unauthorized use. You will not be liable for any unau-
thorized use of the card.

interest  and 

24. STATEMENTS. We will bill you monthly, on a date selected 
by us, for amounts due under this Agreement. As a condition of 
the issuance of this card, you agree to receive your credit card 
statement(s)  electronically.  You  further  understand  and  agree 
that  if  you  currently  have  any  other  PenFed  credit  cards,  you 
will  also  receive  those  statements  electronically.  You  will  re-
ceive an email alerting you when your statement is ready to be 
viewed online. Failure to receive a monthly statement or elec-
tronic 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 Ac-
count 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.

25.  PAYMENT  SKIP  OPTION.  At  our  option,  we  may  pro-
vide 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 ap-
ply.

26.  OTHER  AGREEMENTS.  All  the  terms  and  conditions  of 
any other agreement between us and you and/or any other in-
stitution that is part of a network of automated teller machines 
(ATMs) in which we participate, and any applicable rules and 

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IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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. Pur-
chases  made  with  cash  advances  from  an  ATM  or  with  a 
check that accesses your credit card account do not qualify.

3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied 
with  the  purchase,  contact  us  in  writing  or  electronically  at: 
Card Services, Pentagon Federal Credit Union, Box 456, Al-
exandria, 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.

regulations, also apply to use of the Card. There may be mini-
mum 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 veri-
fication by us, and any checks or other items deposited for col-
lection may be deemed to be received and any other transaction 
may be deemed to occur on our next business day. You under-
stand that transactions may be limited in some areas. 

You agree that we do not waive our rights under this Agree-
ment 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. 

27.  APPLICABLE  LAW.  This  Agreement  and  your  Card  and 
Additional  Cards,  and  all  questions  about  their  legality,  en-
forceability 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  STATE-
MENT 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 sched-
uled, 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 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 hap-

pen:

• If we made a mistake: You will not have to pay the amount in 
question or any interest or other fees related to that amount.
• If we do not believe there was a mistake: You will have to pay the 
amount in question, along with applicable interest and fees. 
We will send you a statement of the amount you owe and the 
date payment is due. We may then report you as delinquent if 
you do not pay the amount we think you owe.

If you receive our explanation but still believe your bill is wrong, 
you  must  write  to  us  within  10  days  telling  us  that  you  still 
refuse to pay. If you do so, we cannot report you as delinquent 
without  also  reporting  that  you  are  questioning  your  bill.  We 
must tell you the name of anyone to whom we reported you as 
delinquent, and we must let those organizations know when the 
matter has been settled between us. If we do not follow all the 
rules above, you do not have to pay the first $50 of the amount 
you question even if your bill is correct. 

YOUR  RIGHTS 
IF  YOU  ARE  DISSATISFIED  WITH  YOUR 
CREDIT  CARD  PURCHASES.  If  you  dissatisfied  with  the 
goods or services that you have purchased with your credit card 
and  you  have  tried  in  good  faith  to  correct  the  problem  with 
the merchant, you may have the right not to pay the remaining 

Information about this card is accurate as of January 2017 
but may have changed since then. To find out what may have 
changed, please go to PenFed.org or call 800-247-5626.

Form 1273-RAP Web  01/17

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS