IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

THE MOTLEY FOOL PENFED PREMIUM TRAVEL REWARDS  
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 oth-
erwise stated, “Account” means your Card account with us.

1. AGREEMENT. We agree to extend credit to you and ad-
vance 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, 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 responsibil-
ity 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.

that 

this  Agreement  at  any 

3.  CHANGE  IN  TERMS.  You  agree 
terms 
the 
of 
to  any  cardmem-
this  Agreement  are  applicable 
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 un-
authorized. Should you choose to cancel your Account, the 
terms in effect at the time that you cancel the Account will 
apply until the outstanding balance of the Account is paid 
in full, unless you are in default. Your card will no longer 
be  available  for  use  for  new  transactions,  including  pur-
chases,  as  the  Account  will  be  closed  (if  it  is  not  already 
closed). Any rewards points or miles you have earned will 
be forfeited unless they are redeemed before the Account is 
closed. If you do not notify us of your decision to terminate 
the account by the date stated in any notice we provide, or 
if you notify us but then use the Account after the date 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  PERMIT-
TED BY LAW:

(A)  PURCHASES:  (1)  No  finance  charge  will  be  imposed 
during  the  next  billing  cycle  (defined  as  the  time  interval 
between regular monthly billing statement dates) if you pay 
the entire new balance shown on the current periodic state-
ment 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 peri-
odic statement is considered a part of the outstanding bal-
ance from the date of posting. (3) The amount of the finance 
charge  is  calculated  by  multiplying  the  average  daily  bal-
ance for purchases by the monthly periodic rate. The month-
ly periodic rate is the yearly interest rate divided by 12.

(B)  CASH  ADVANCES:  (1)  Finance  charges  accrue  on  all 
cash  advance  amounts  from  the  date  charged  to  your  Ac-
count  and  continue  so  long  as  such  amounts  remain  out-
standing. (2) A finance charge will be imposed on the aver-
age daily balance of cash advances, which is the sum of the 
cash advances (determined by including new cash advances 
and  deducting  any  payments  or  credits  and  excluding  any 
unpaid  finance  charge)  outstanding  each  day  during  the 
billing cycle, divided by the number of days in the billing 
cycle. A cash advance appearing on the periodic statement 
is considered a part of the outstanding balance from the date 
of posting. (3) The amount of finance charge is calculated by 
multiplying the average daily balance for cash advances by 
the monthly periodic rate.

6. PAYMENTS. A payment delivered by regular U.S. mail 
must be sent to the address indicated on your periodic state-
ment. Your payment by mail must be a check or money or-
der in U.S. dollars with your account number on the check 
or  money  order  and  drawn  on  a  U.S.  financial  institution, 
and  be  accompanied  by  the  payment  voucher  from  your 
statement.  Write  your  account  number  on  your  check  or 
money order. All such payments will be posted to your ac-
count  as  of  the  date  we  receive  them  provided  we  receive 
them before 5:00 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 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 available to you for 10 calendar days. Payments made 
electronically  through  our  automated  telephone  service, 
member service representatives, or our website will be sub-
ject 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 established 
for the Account, if you become insolvent or file bankruptcy, 
if you become incompetent or die, if a judgment or garnish-
ment should be issued against any of your property includ-
ing any of your Accounts with us, if we in good faith consid-
er our or your obligations or your ability to repay or perform 
your obligations with us unsafe or insecure, if this Account 
or  any  other  account  at  PenFed  is  maintained  by  you  in  a 
manner that PenFed, in its sole discretion, deems contrary 
to sound financial practice, or if you fail to live up to any 
of  your  other  agreements  with  us,  to  include  any  PenFed 
policy  or  procedure.  Subject  to  law,  if  you  default  on  this 
Agreement, we can, without giving anyone notice, demand 
immediate payment of the remaining balance due including 
but not limited to any unpaid finance charges, late fees and 
any other charges due under this Agreement. You also agree 
our obligation for further credit extensions shall immediate-
ly end and we may terminate your Account without further 
notice to you. We can do this if you make any false or mis-
leading statements on your requests for an advance, if you 
die, file for bankruptcy or if any other creditor tries to seize 
your property. If your required minimum payment has not 
been received within 60 days of the due date, any balance, 
including  a  balance  transfer  with  a  promotional  rate,  will 
increase  to  the  Penalty  Annual  Percentage  Rate  (Penalty 
APR). See Section 10 below for details of the Penalty APR. 
     If collection is necessary, you agree to pay all costs of 
collection, including attorney’s fees and court costs, in an 
amount not more than 25 percent of the balance due.

8. LATE PAYMENT FEES. You will pay a late payment fee 
if the Minimum Payment Due is received 10 or more days 
past the due date. 

9. VARIABLE RATES One or more APRs that apply to your ac-
count 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 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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 of 10.74% 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.

10. PENALTY ANNUAL PERCENTAGE RATE. If your re-
quired minimum payment is not received within 60 days of 
the due date, your Account is subject to change to a Penalty 
APR. The Penalty APR will remain in place until you make 
three consecutive payments on or before the date that each 
payment is due. In addition, your balance transfer rate for 
any  outstanding  balance  transfer  amounts  will  increase  to 
the Penalty APR. After three consecutive months of on-time 
payments, the rates will be reduced to the rates that applied 
prior to the increase, unless the temporary promotional rate 
has expired or the index for the variable rate has changed. 

11.  PROMOTIONAL  ANNUAL  PERCENTAGE  RATE.  At 
our option a special promotional rate may be offered from 
time to time. The specific terms will be provided at the time 
of the offer. Generally, the promotional APR will only apply 
to  select  transactions  (i.e.  purchases  or  balance  transfers) 
during the promotional period.  The APR rates for all other 
transactions, not outlined in the promotion as eligible for the 
promotional APR, will remain unchanged.  If your required 
minimum payment is not received within 60 days of the due 
date,  any  promotional  APR  and  the  periodic  rate  for  pur-
chases,  cash advances, and balance transfers will increase 
to the Penalty APR until 3 consecutive payments are made 
on time.

12. ACCOUNT CLOSURE. You or anyone jointly liable for 
the Account may terminate the Account at any time by noti-
fying us orally or in writing. However, this will not relieve 
you  or  any  of  the  other  joint  owners  from  liability  for  the 
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.

13. 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. 

14. To protect us if you are in default on any credit extend-
ed  or  cash  advanced  under  this  account,  you  pledge  all  of 
your shares, deposits, payments and dividends which may 
be received, whether held jointly or individually, up to the 
amount of your outstanding balance. The foregoing pledge 
includes  the  right  to  apply  funds  available  to  you  in  any 
jointly  held  account  on  your  date  of  death.  This  does  not 
include your individual retirement account (IRA). We may 
take all the shares needed by us to repay your credit exten-
sion  or  cash  advance.  If  it  is  necessary  to  take  all  of  your 
shares for the payment of this account, you understand your 
membership in PenFed may end. Collateral securing other 
loans with the credit union may also secure this loan.

15. CARD DISHONOR. If a merchant refuses the Card, we 
will not have any liability or responsibility. No cash refund 
will be made to or accepted by you with respect to any ad-
justment 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. 

16. 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  in-
directly related to it. You also agree to indemnify and hold 
PenFed harmless from any suits or other legal action or li-
ability, directly or indirectly, resulting from such illegal use. 

17.  AUTHORIZED  USER.  You  may  request  us  to  issue  a 
Card  to  an  individual  who  has  no  financial  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.

18. 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.

19. ISSUANCE/USE OF CARD. Upon receipt of the Card(s) 
you  and  all  other  cardholders  agree  that  you  will  sign  the 
signature panel on the back of the Card(s). The Card remains 
the property of Pentagon Federal Credit Union and may be 
revoked without notice at any time. The Card must be 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. 

20. ISSUANCE/USE OF CHECKS. If we issue you checks, 
these  checks  are  treated  as  cash  advances  when  they  are 
used and presented for payment. We may refuse to issue or 
reissue and may also terminate, limit or modify the use of 
the checks without notice to you, and you agree to surrender 
the checks upon our demand or upon learning of our cancel-
lation or withdrawal of the checks. Use of checks or other 
methods of access for kiting or similar activity is an action 
of  default.  The  checks  at  all  times  remain  the  property  of 
PenFed and we may repossess them without the use of court 
process. All of the terms and conditions of this Agreement 
apply to the use of the checks. Only check blanks and other 
methods authorized by PenFed now and in the future may 
be used to obtain funds from your Account. If so authorized 

by  PenFed,  your  use  of  a  personal  identification  number 
(PIN)  for  such  purpose  shall  constitute  your  signature. 
Paid checks become our property and will not be returned 
to you. Copies may be provided, if requested for a nominal 
fee  for  each  item.  Should  we  decline  to  pay  any  check,  or 
if  you  instruct  us  not  to  pay  a  check,  PenFed  shall  not  be 
liable,  except  for  gross  negligence,  for  any  action  it  takes 
regarding payment or nonpayment of a check. If we decline 
to pay a check, a charge may be made to your account in the 
amount indicated on our current Schedule of Service Fees 
brochure, which is available at any branch office, on request, 
or at PenFed.org. You will not date any check later than the 
date that you write it. If you do and the check is presented 
for  payment  before  its  date,  PenFed,  in  its  sole  discretion 
may return it unpaid, or pay it. If we pay it, we will charge 
the Account. PenFed may, in its sole discretion, pay a check 
which has a date more than six months old.

21.  ANNUAL  FEE.  You  may  be  required  to  pay  a  non-
refundable  annual  fee  for  each  Account  you  have  with 
us  for  which  a  Card  is  issued.  You  will  pay  only  one  an-
nual  fee,  even  if  more  than  one  Card  is  issued  for  your 
Account.  The  fee  will  be  charged  annually  to  your  Ac-
count.  This  charge  will  appear  on  your  periodic  state-
ment  for  the  billing  cycle  when  it  first  becomes  effective.  

22.  FOREIGN  TRANSACTIONS.  Purchases  and  cash  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. 

23.  CREDIT  INSURANCE  PLAN.  Your  purchase  of  the 
Credit Insurance Plan (“Plan”) is optional. Whether or not 
you purchase this protection will not affect your application 
for credit or the terms of any existing credit agreement you 
have with PenFed. If you do purchase Credit Insurance you 
may  cancel  it  at  any  time  by  notifying  us  in  writing.  You 
understand  that  you  may  rescind  this  plan  within  30  days 
after  the  date  your  Credit  Insurance  becomes  effective.  If 
you  rescind,  any  premiums  you  have  already  paid  will  be 
credited to your account. We can terminate this Agreement 
by giving you notice at least 30 days in advance of the termi-
nation. The premium, method of calculation and assessment 
are subject to change. If these terms change we will provide 
written  notice  before  the  change  goes  into  effect.  Premi-
ums will accrue on a daily basis and will be billed to your 
account  monthly.  Complete  details  of  this  optional  Credit 
Insurance  are  included  in  The  Credit  Insurance  Plan  Pro-
gram Agreement which you will receive upon enrollment.

24. 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.

25. ASSIGNABILITY OF ACCOUNT.  You  agree  that  Pen-
Fed may at any time sell, transfer or assign your account.

26. LOST/STOLEN CARD. You are responsible for the pos-
session and use of the Card and must maintain the confiden-
tiality of the PIN we may assign you. You will notify us at 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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 1-800-556-
LOST OR 402-399-3600 collect from overseas, or by writ-
ing  to  us  at  PenFed  Card  Services,  Box  456,  Alexandria, 
VA 22313-0456. 

27. 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 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.

28. 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. There is a $1 fee for each pa-
per statement received. Failure to receive a monthly state-
ment  or  electronic  statement  notification  does  not  relieve 
you  from  making  any  required  minimum  payment.  Upon 
receipt  of  each  periodic  statement,  you  should  examine  it 
and immediately notify us in writing of any transaction you 
believe to be in error. If your Account is a joint account, we 
can send statements and notices to either of you. You agree 
to notify us promptly of any change in your name, address, 
or e-mail address.

29. 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 apply.

30. OTHER AGREEMENTS.  All  the  terms  and  conditions 
of any other agreement between us and you and/or any other 
institution that is part of a network of automated teller 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 re-
ceived and any other transaction may be deemed to occur on 
our next business day. You understand that transactions may 
be  limited  in  some  areas.  You  agree  that  we  do  not  waive 
our  rights  under  this  Agreement  if  we  fail  to  assert  them. 
The  Agreement  binds  and  benefits  us  and  our  successors 
and  assigns  and  binds  you,  your  estate  and  your  personal 
representatives. 

31. APPLICABLE LAW. This Agreement and your Card and 
Additional Cards, and all questions about their legality, 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 

error:

•  We cannot try to collect the amount in question, or report 

you as delinquent on that amount.

•  The charge in question may remain on your statement, and 
we may continue to charge you interest on that amount.
•  While  you  do  not  have  to  pay  the  amount  in  question, 
you  are  responsible  for  the  remainder  of  your  balance.
•  We can apply any unpaid amount against your credit limit.
After we finish our investigation, one of two things will 

happen:

•  If we made a mistake: You will not have to pay the amount 
in  question  or  any  interest  or  other  fees  related  to  that 
amount.

•  If we do not believe there was a mistake: You will have to 
pay the amount in question, along with applicable interest 
and fees. We will send you a statement of the amount you 
owe and the date payment is due. We may then report you 
as delinquent if you do not pay the amount we think you 
owe.

If you receive our explanation but still believe your bill is 
wrong, you must write to us within 10 days telling us that 
you still refuse to pay. If you do so, we cannot report you as 
delinquent without also reporting that you are questioning 
your bill. We must tell you the name of anyone to whom we 
reported you as delinquent, and we must let those 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  are  dissatisfied  with 
the  goods  or  services  that  you  have  purchased  with  your 
credit card and you have tried in good faith to correct the 
problem with the merchant, you may have the right not to 
pay the remaining amount due on the purchase. 
To use this right, all of the following must be true:
1.  The  purchase  must  have  been  made  in  your  home  state 
or within 100 miles of your current mailing address, and 
the purchase price must have been more than $50. (Note: 
Neither of these is necessary if your purchase was based 
on an advertisement we mailed to you, or if we own the 
company that sold you the goods or services.)

2.  You  must  have  used  your  credit  card  for  the  purchase. 
Purchases  made  with  cash  advances  from  an  ATM  or 
with  a  check  that  accesses  your  credit  card  account  do 
not qualify.

3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still 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  dis-
puted amount as discussed above. After we finish our inves-
tigation, we will tell you our decision. At that point, if we 
think you owe an amount and you do not pay, we may report 
you as delinquent.

Information about this card is accurate as of June 2015 but may have changed since 
then. To find out what may have changed, please go to PenFed.org or call 855-278-1157.

AMEX Form 1218-TMF Web  06/15

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS