IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

AMA PENFED 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. Un-
less 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 Agree-
ment, on the Card, on any charge slip resulting from authorized 
use of the Card, on any authorized cash advance slip, and to ac-
cept responsibility for all actions taken with the Card.

2. CREDIT LIMIT. You agree to use the Card within the credit 
limit  we  authorize.  You  also  agree  that  we  can  change  your 
credit limit at any time. We are not obligated to accept charges 
that  would  cause  you  to  exceed  your  authorized  credit  limit. 
Any extension of credit to you, made or honored by us, shall be 
at such times and in such amounts and for such purposes as to 
conform to this Agreement, and only when there is no default.

3. CHANGE IN TERMS. You agree that the terms of this Agree-
ment 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  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 informa-
tion 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 peri-
odic rate is the yearly interest rate divided by 12.

(B) CASH ADVANCES. (1) Finance charges accrue on all cash 
advance  amounts  from  the  date  charged  to  your  Account  and 
continue  so  long  as  such  amounts  remain  outstanding.  (2)  A 
finance  charge  will  be  imposed  on  the  average  daily  balance 
of cash advances, which is the sum of the cash advances (de-
termined  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 outstand-
ing balance from the date of posting. (3) The amount of finance 
charge  is  calculated  by  multiplying  the  average  daily  balance 
for cash advances by the monthly periodic rate.

(C)  BALANCE  TRANSFERS.  Balance  transfers  are  treated  as 
cash advances. There is no grace period for payments on bal-
ance transfers.  If you transfer a balance from another financial 
institution  to  us,  you  will  immediately  incur  finance  charges 
at the regular or promotional APR available at the time of the 
balance  transfer  and  on  purchases  at  the  purchase  APR.    For 
instance if you transfer $1,000 at a promotional rate of 0% APR 
and then make a purchase of $200, you will immediately accrue 
finance charges at the purchase rate, forgoing the grace period.  
To avoid finance charges on new purchases after you transfer a 
balance, you must pay all balances on your account including 
any balances that you transfer in full by the due date. 

6. PAYMENTS. A payment delivered by regular U.S. mail must 
be  sent  to  the  address  indicated  on  your  periodic  statement. 
Your payment by mail must be a check or money order in U.S. 
dollars with your account number on the check or money order 
and drawn on a U.S. financial institution, and be accompanied 
by  the  payment  voucher  from  your  statement.  Write  your  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 Pen-
tagon Federal’s current Schedule of Service Fees brochure. In 
addition, for the 6 months following any such dishonored pay-
ment, any payments you make will be credited to your account 
as of the date we receive them, but credit in the amount of the 
payment will not be available to you for 10 calendar days.

You understand and agree that the minimum monthly 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 under-
stand and agree that payments in excess of the minimum month-
ly 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 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 bill-
ing 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  percent-
age 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 of 6.74% 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. 

9. PROMOTIONAL ANNUAL PERCENTAGE RATE. At our 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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  in-
clude 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. 

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 Cardhold-
ers,  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 protection, 
you understand that you may withdraw the special power of at-
torney 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 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  Agree-
ment. 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 can-
cellation. 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 pre-
sented 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  condi-
tions  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 advances 
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 col-
lect from overseas, or by writing to us at Card Services, Pen-
tagon  Federal  Credit  Union,  Box  456,  Alexandria,  VA  22313-
0456. 

23. LIABILITY FOR UNAUTHORIZED USE. If your statement 
has an error or a charge you did not authorize, you must tell us 
in writing within 60 days after you get that statement. You must 
follow all instructions on that statement. If we find no error after 
investigation,  you  owe  us  the  original  amount  plus  applicable 
interest and fees. 

You are liable for all authorized use of any Card issued under 
the Agreement regardless of the credit limit or the party using 
it. You agree to notify us immediately by calling 800-556-LOST 
or 402-399-3600 collect from overseas, or writing to us at Card 
Services, Pentagon Federal Credit Union, Box 456, Alexandria, 
VA 22313-0456 if you suspect unauthorized use of the Card, and 
to cooperate with us in the recovery of any amounts advanced 
based on unauthorized use. You will not be liable for any unau-
thorized use of the card.

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 provide 
for  a  payment  skip  option,  which  means  that  you  may  be  al-
lowed to skip making the minimum periodic payment for speci-
fied 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 
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 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

verification by us, and any checks or other items deposited for 
collection may be deemed to be received and any other trans-
action 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 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 Ad-
ditional Cards, and all questions about their legality, enforce-
ability and interpretation, are governed by the laws of the Com-
monwealth 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 
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 al-
ready 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  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 ad-
vertisement 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.

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 866-386-7254.

Form 1273-AMA Web  01/17

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS