IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

PENFED DEFENDER AMERICAN EXPRESS® CARD 

Cardholder Agreement and Disclosure Statement 

DEFINITIONS.  The  “Card”  means  the  Pentagon  Federal 
Credit Union (PenFed) American Express credit card which 
we issue to you under this Agreement, and includes any de-
vice or check used to obtain credit or cash from the account. 
An Authorized User is an individual receiving a Card, but 
who has no responsibility for payment of the Account. The 
words “you”, “your” and “cardmember” mean each person, 
jointly  and  individually  who  holds,  signs,  retains,  uses,  or 
permits others to use or sign a card. The words “our”, “we” 
and “us” mean PenFed or any of its assignees. Unless other-
wise stated, “Account” means your Card account with us.

1.  AGREEMENT.  We  agree  to  extend  credit  to  you  and 
advance  amounts  up  to  your  credit  limit,  but  transaction 
limits may apply. Your credit limit is not increased by any 
credit balance you may have on your account. You will sign 
the back of the Card as soon as you receive it. You agree to 
pay  us  for  credit  extended  for  the  use  of  the  Card  by  you 
or any other cardmember, along with all applicable finance 
charges,  fees  and  insurance,  if  any  apply.  By  signing,  us-
ing or permitting others to use the Card, you agree to the 
terms and conditions contained in this Agreement, on the 
Card,  on  any  charge  slip  resulting  from  authorized  use  of 
the Card, on any authorized cash advance slip, and to accept 
responsibility for all actions taken with the Card.

2.  CREDIT  LIMIT.  You  agree  to  use  the  Card  within  the 
credit limit we authorize. You also agree that we can change 
your  credit  limit  at  any  time.  We  are  not  obligated  to  ac-
cept charges that would cause you to exceed your authorized 
credit limit. Any extension of credit to you, made or hon-
ored by us, shall be at such times and in such amounts and 
for such purposes as to conform to this Agreement, and only 
when there is no default.

this  Agreement  at  any 

3.  CHANGE  IN  TERMS.  You  agree  that  the  terms 
of  this  Agreement  are  applicable  to  any  cardmem-
ber.  You  also  agree  that  we  can  change  the  terms 
of 
time  by  adding,  delet-
ing,  or  modifying  any  provision  of  the  Agreement. 
     Termination of the account by you or PenFed will not 
affect your obligation to pay the Account balance plus any 
finance charge and other charges you owe under this Agree-
ment. You are responsible for all transactions made to your 
account  after  termination,  unless  the  transactions  were 
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 cash rewards you have earned will be forfeited. 
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 stat-
ed 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 autho-
rize any person, partnership, association, firm, corporation 
or consumer reporting agency, upon our request, to furnish 
us with information concerning you relevant to the review 

and evaluation of this Account. You understand and agree 
that  we  may  terminate  your  account  upon  reevaluation  of 
your creditworthiness.

5.  FINANCE  CHARGES.  WILL  BE  IMPOSED  IN  THE 
FOLLOWING MANNER AND WILL BE IN AMOUNTS 
NOT IN EXCESS OF THOSE PERMITTED BY LAW:

(A)  PURCHASES:  (1)  No  finance  charge  will  be  imposed 
during the next billing cycle (defined as the time interval be-
tween regular monthly billing statement dates) if you pay the 
entire new balance shown on the current periodic statement 
and we receive your payment on or before the payment due 
date shown on the statement. (2) In all other cases, a finance 
charge will be imposed based on the average daily balance 
of all purchases and debit adjustments, hereafter referred to 
as purchases. The average daily balance is the sum of all out-
standing purchases, which is determined by including new 
purchases and deducting payments or credits and excluding 
any unpaid finance charge for your Account on each day of 
the billing cycle divided by the number of days in the bill-
ing cycle. A purchase appearing on the periodic statement is 
considered a part of the outstanding balance from the date 
of  posting.  (3)  The  amount  of  the  finance  charge  is  calcu-
lated by multiplying the average daily balance for purchases 
by the monthly periodic rate. The monthly periodic rate is 
the yearly interest rate divided by 12.

(B)  CASH  ADVANCES:  (1)  Finance  charges  accrue  on  all 
cash  advance  amounts  from  the  date  charged  to  your  Ac-
count  and  continue  so  long  as  such  amounts  remain  out-
standing. (2) A finance charge will be imposed on the aver-
age daily balance of cash advances, which is the sum of the 
cash advances (determined by including new cash advances 
and deducting any payments or credits and excluding any 
unpaid  finance  charge)  outstanding  each  day  during  the 
billing  cycle,  divided  by  the  number  of  days  in  the  billing 
cycle. A cash advance appearing on the periodic statement is 
considered a part of the outstanding balance from the date 
of posting. (3) The amount of finance charge is calculated by 
multiplying the average daily balance for cash advances by 
the monthly periodic rate.

(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  institution  to  us,  you  will  immediately  incur  fi-
nance 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 pro-
motional 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 state-
ment. Your payment by mail must be a check or money or-
der in U.S. dollars with your account number on the check 
or money order and drawn on a U.S. financial institution, 
and  be  accompanied  by  the  payment  voucher  from  your 
statement.  Write  your  account  number  on  your  check  or 
money order. All such payments will be posted to your ac-
count  as  of  the  date  we  receive  them  provided  we  receive 
them before 5:00 PM at the address indicated on your peri-
odic statement. Payments received at other locations or not 
conforming to these procedures may be delayed in posting, 

but not more than 5 business days from the date of receipt. 
          PenFed,  in  its  sole  discretion,  may  accept  a  check  for 
payment  on  your  Account  even  though  payment  was 
made  before  the  date  of  the  check  or  a  check  which  has  a 
date  more  than  6  months  old.  For  the  first  six  months 
all  payments  received  from  PenFed  members  who  have 
held  membership  for  six  months  or  less  will  be  cred-
ited  to  your  Account  as  of  the  date  we  receive  them,  but 
credit  in  the  amount  of  the  payment  will  not  be  available 
to  you  for  10  calendar  days.  Payments  made  electroni-
cally  through  our  automated  telephone  service,  mem-
ber  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 ex-
ceed  $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 ad-
ditional amount you wish over the minimum payment due. 
          If  your  payment  is  not  honored  or  we  must  return  it 
to  you  because  it  could  not  be  processed,  a  charge  may 
be  made  to  your  account  in  the  amount  indicated  for  “re-
turned  payment”  on  Pentagon  Federal’s  current  Schedule 
of  Service  Fees  brochure.  In  addition,  for  the  6  months 
following  any  such  dishonored  payment,  any  payments 
you  make  will  be  credited  to  your  account  as  of  the  date 
we  receive  them,  but  credit  in  the  amount  of  the  pay-
ment  will  not  be  available  to  you  for  10  calendar  days. 
          You  understand  and  agree  that  the  minimum  month-
ly  payment  will  be  applied  first  to  the  card  balance  with 
the  lowest  APR  in  the  following  order:  finance  charges, 
credit  life  fees  (if  any),  cash  advance  balances,  and  pur-
chase  balances.You  understand  and  agree  that  payments 
in  excess  of  the  minimum  monthly  payment  will  be  ap-
plied  first  to  the  card  balance  bearing  the  highest  rate  of 
interest,  then  to  each  successive  balance  bearing  the  next 
highest  rate  of  interest  until  the  payment  is  exhausted.

7.  DEFAULT.  You  will  be  in  default  if  you  fail  to  make 
any  payment  on  time,  if  you  exceed  the  credit  limit  es-
tablished  for  the  Account,  if  you  become  insolvent  or  file 
bankruptcy,  if  you  become  incompetent  or  die,  if  a  judg-
ment 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  abil-
ity 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 remain-
ing  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 termi-
nate  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,  we  may  end  your  promotional 
rates,  including  your  promotional  Balance  Transfer  APR. 
          If  collection  is  necessary,  you  agree  to  pay  all  costs  of 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

collection,  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 add-
ing 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 the month, we de-
termine 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  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,  we  may  end  your  promotional 
rates, 
including  your  promotional  Balance  Transfer 
APR,  until  3  consecutive  payments  are  made  on  time.

10. ACCOUNT CLOSURE. You or anyone jointly liable for 
the Account may terminate the Account at any time by no-
tifying us orally or in writing. However, this will not relieve 
you  or  any  of  the  other  joint  owners  from  liability  for  the 
repayment  of  any  obligations  arising  from  the  use  of  the 
Account.  Upon  receipt  of  your  notice,  we  may  close  your 
Account  or  suspend  your  account  privileges  at  any  time 
without prior notice. You must return all of the Cards to us 
upon request.

11. THIRD PARTY DISCLOSURE. We may disclose infor-
mation to third parties about your account in order to ad-
vise third parties, such as American Express Travel Related 
Services Company, Inc., American Express Global Network 
Services, credit reporting agencies or merchants of the exis-
tence 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  de-
fault  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 bal-
ance. 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 ac-
count (IRA). We may take all the shares needed by us to re-
pay your credit extension or cash advance. If it is necessary 
to  take  all  of  your  shares  for  the  payment  of  this  account, 
you understand your membership in PenFed may end. Col-
lateral 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 card-holders(s) will be deemed an action of default 
and/or  breach  of  contract  and  your  account  and  other 

related  services  may  be  terminated  at  our  discretion.  You 
further  agree,  should  illegal  use  occur,  to  waive  any  right 
to  sue  PenFed  for  such  illegal  use  or  any  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  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.

16. LIEN. You hereby appoint PenFed as your agent under a 
special power of attorney as well as give your express con-
sent  to  enable  us  to  charge  against  any  balance  in  any  of 
your accounts, including accounts on which you are a joint 
owner, to include any otherwise statutorily protected funds 
that may not otherwise be available by legal process, to pay 
any indebtedness or other outstanding financial obligation 
owed  by  you  or  any  person  who  is  listed  as  a  joint  owner 
on  your  accounts,  including  a  deceased  joint  owner.  This 
does not include your IRA or any other account for which 
this  provision  is  not  permitted.  We  may  take  such  action 
without further notice to you or any joint owner. In regard 
to those funds that have a statutory protection, you under-
stand that you may withdraw the special power of attorney 
and consent for PenFed to apply such funds to pay any such 
indebtedness by notifying us in writing. If your agency ap-
pointment or consent is withdrawn, PenFed may in its sole 
discretion terminate any and all services that you have with 
the credit union.

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 sur-
rendered 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 ac-
cording 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 mer-
chant/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 can-
cellation 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 re-
garding 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 Ac-
count. PenFed may, in its sole discretion, pay a check which 
has a date more than six months old.

19.  FOREIGN  TRANSACTIONS.  Purchases  and  cash  ad-
vances  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  American  Express  and 
may include an international transaction fee. 

20. 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 cred-
ited to your account. We can terminate this Agreement by 
giving you notice at least 30 days in advance of the termina-
tion. 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.  Premi-
ums 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  Pro-
gram  Agreement  which  you  will  receive  upon  enrollment.

21.  TRAVEL  ACCIDENT  INSURANCE.  We  agree  to  pro-
vide you with Travel Accident Insurance at no direct cost 
to you. You, your spouse and unmarried dependent chil-
dren will be automatically insured against accidental bodi-
ly injuries or death while riding in any aircraft or land or 
water conveyance operated by a common carrier licensed 
to carry passengers for hire provided the full travel fare(s) 
has been charged to your Account. Death benefits will be 
paid to the estate of the insured; all other benefits will be 
paid to the insured. This insurance is subject to cancella-
tion without prior notice. You understand and agree that 
the  Certificate  of  Insurance  controls  all  insurance  terms 
and  conditions  to  the  exclusion  of  any  statements  made 
in  this  Agreement  regarding  limitations,  exclusions,  and 
claims procedures.

22.  ASSIGNABILITY  OF  ACCOUNT.  You  agree  that  Pen-
Fed may at any time sell, transfer or assign your account.

23. LOST/STOLEN CARD. You are responsible for the pos-
session  and  use  of  the  Card  and  must  maintain  the  confi-
dentiality of the PIN we may assign you. You will notify us 
at once if you believe your Card has been lost or stolen, or 
if you have reason to believe the Card is being used without 
your  permission.  You  may  notify  us  by  calling  1-800-732-
8268 OR 1-541-225-6790 from overseas, or by writing to us 
at  PenFed  Card  Services,  Box  456,  Alexandria,  VA  22313-
0456. 

24. LIABILITY FOR UNAUTHORIZED USE. If your state-

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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  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 using the 
contact information listed in “Lost/Stolen Card”, above) if 
you suspect unauthorized use of the Card, and to cooperate 
with us in the recovery of any amounts advanced based on 
unauthorized use. You will not be liable for any unauthor-
ized use of the card.

25. STATEMENTS. We will bill you monthly, on a date se-
lected by us, for amounts due under this Agreement. If you 
elect  to  receive  your  credit  card  statement  electronically, 
you will receive an e-mail alerting you when your statement 
is  ready  to  be  viewed  online.  Failure  to  receive  a  monthly 
statement or electronic statement notification does not re-
lieve  you  from  making  any  required  minimum  payment. 
Upon receipt of each periodic statement, you should exam-
ine it and immediately notify us in writing of any transac-
tion you believe to be in error. If your Account is a joint ac-
count, we can send statements and notices to either of you. 
You agree to notify us promptly of any change in your name, 
address, or e-mail address.

26.  PAYMENT  SKIP  OPTION.  At  our  option,  we  may 
provide  for  a  payment  skip  option,  which  means  that  you 
may be allowed to skip making the minimum periodic pay-
ment for specified billing cycles. If you accept this payment 
skip option, we will continue to apply the finance charge as 
disclosed above, but no late payment fees will apply to the 
skipped payment. For the billing cycle following a skipped 
payment,  all  the  terms  and  conditions  of  this  Agreement 
(including minimum periodic payment and applicable late 
payment fees) will continue to apply.

27. 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 ma-
chines (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  oc-
cur on our next business day. You understand that transac-
tions 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 succes-
sors  and  assigns  and  binds  you,  your  estate  and  your  per-
sonal representatives. 

28. 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 responsibili-
ties under the Fair Credit Billing Act. 

WHAT  TO  DO  IF  YOU  FIND  A  MISTAKE  ON  YOUR 
STATEMENT. If you think there is an error on your state-
ment,  write  to  us  at:  Card  Services,  Pentagon  Federal 
Credit Union, Box 456, Alexandria, VA 22313-0456. You 
may also contact us on the Web via our Secure Online Mes-
sage Center at: PenFed.org 
In your letter give us the following information:
• Account information: Your name and account number.
• Dollar amount: The dollar amount of the suspected error.
•  Description  of  problem:  If  you  think  there  is  an  error  on 
your bill, describe what you believe is wrong and why you 
believe it is a mistake.

You must contact us:
• Within 60 days after the error appeared on your statement.
• At least 3 business days before an automated payment is 
scheduled,  if  you  want  to  stop  payment  on  the  amount 
you think is wrong.

You must notify us of any potential errors in writing or elec-
tronically. You may call us, but if you do we are not required 
to investigate any potential errors and you may have to pay 
the amount in question.

WHAT  WILL  HAPPEN  AFTER  WE  RECEIVE  YOUR  LET-
TER. When we receive your letter, we must do two things:
1. Within 30 days of receiving your letter, we must tell you 
that we received your letter. We will also tell you if we have 
already corrected the error.

2. Within  90  days  of  receiving  your  letter,  we  must  either 
correct the error or explain to you why we believe the bill 
is correct.

While we investigate whether or not there has been an er-

ror:

•  We cannot try to collect the amount in question, or report 

you as delinquent on that amount.

•  The  charge  in  question  may  remain  on  your  statement, 
and  we  may  continue  to  charge  you  interest  on  that 
amount.

•  While  you  do  not  have  to  pay  the  amount  in  question, 
you  are  responsible  for  the  remainder  of  your  balance.
•  We  can  apply  any  unpaid  amount  against  your  credit 

limit.

After  we  finish  our  investigation,  one  of  two  things  will 

happen:

•  If we made a mistake: You will not have to pay the amount 
in  question  or  any  interest  or  other  fees  related  to  that 
amount.

•  If we do not believe there was a mistake: You will have to 
pay the amount in question, along with applicable interest 
and fees. We will send you a statement of the amount you 
owe and the date payment is due. We may then report you 
as delinquent if you do not pay the amount we think you 
owe.

If  you  receive  our  explanation  but  still  believe  your  bill  is 
wrong, you must write to us within 10 days telling us that 
you still refuse to pay. If you do so, we cannot report you as 
delinquent without also reporting that you are questioning 
your bill. We must tell you the name of anyone to whom we 
reported you as delinquent, and we must let those organiza-
tions  know  when  the  matter  has  been  settled  between  us. 
If we do not follow all the rules above, you do not have to 
pay  the  first  $50  of  the  amount  you  question  even  if  your 
bill is correct. 

YOUR RIGHTS IF YOU ARE DISSATISFIED WITH YOUR 
CREDIT  CARD  PURCHASES.  If  you  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 dissatis-
fied with the purchase, contact us in writing or electronical-
ly at: Card Services, Pentagon Federal Credit Union, Box 
456, Alexandria, VA 22313-0456, or online at PenFed.org.
While we investigate, the same rules apply to the disput-
ed amount as discussed above. After we finish our investiga-
tion, we will tell you our decision. At that point, if we think 
you owe an amount and you do not pay, we may report you 
as delinquent.

Information about this card is accurate as of January 2017 
but may have changed since then. To find out what may have 
changed, please go to PenFed.org or call 800-732-8268.

AMEX DEF Form 1221 Web  01/17

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS