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• We can apply any unpaid amount against your credit limit.
After we finish our investigation, one of two things will happen:
• If we made a mistake: You will not have to pay the amount in question or any interest 

or other fees related to that amount.

•  If  we  do  not  believe  there  was  a  mistake:  You  will  have  to  pay  the  amount  in 
question, along with applicable interest and fees. We will send you a statement of the 
amount you owe and the date payment is due. We may then report you as delinquent 
if you do not pay the amount we think you owe.

If you receive our explanation but still believe your bill is wrong, you must write to us 
within 10 days telling us that you still refuse to pay. If you do so, we cannot report you 
as delinquent without also reporting that you are questioning your bill. We must tell 
you the name of anyone to whom we reported you as delinquent, and we must let those 
organizations know when the matter has been settled between us. If we do not follow 
all the rules above, you do not have to pay the first $50 of the amount you question even 
if your bill is correct. 

your rights if you Are DissAtisfieD With your CreDit CArD Pur-
ChAses. 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 mer-
chant, you may have the right not to pay the remaining amount due on the purchase. 
To use this right, all of the following must be true:
1. The purchase must have been made in your home state or within 100 miles of your 
current  mailing  address,  and  the  purchase  price  must  have  been  more  than  $50. 
(Note: Neither of these is necessary if your purchase was based on an advertisement 
we mailed to you, or if we own the company that sold you the goods or services.)
2. You must have used your credit card for the purchase. Purchases made with cash 
advances from an ATM or with a check that accesses your credit card account do 
not qualify.

3. You must not yet have fully paid for the purchase.
If  all  of  the  criteria  above  are  met  and  you  are  still  dissatisfied  with  the  pur-
chase,  contact  us  in  writing  or  electronically  at:  Card  Services,  Pentagon  Fed-
eral Credit Union, Box 456, Alexandria, VA 22313-0456, or online at PenFed.org.
While we investigate, the same rules apply to the disputed amount as discussed above. 
After we finish our investigation, we will tell you our decision. At that point, if we think 
you owe an amount and you do not pay, we may report you as delinquent.

Information about this card is accurate as of June 2012 but may have changed since 
then. To find out what may have changed, please go to PenFed.org or call 800-247-5626.

Form 1203  6/12  POD  FDR M-106539   

VisA, VisA seCureD AnD mAsterCArD

Cardholder Agreement  
and Disclosure Statement 

Definitions.  The  “Card”  means  the  Pentagon  Federal  Credit  Union  (Pen-
Fed) 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 individual receiving a Card, but who has no responsibility for payment 
of  the  Account.  The  words  “you”,  “your”  and  “cardholder”  mean  each  person, 
jointly and individually who holds, signs, retains, uses, or permits others to use or 
sign a card. The words “our”, “we” and “us” mean PenFed or any of its assignees. 
Unless otherwise stated, “Account” means your Card account with us. 

1. Agreement. We agree to extend credit to you and advance amounts up to 
your credit limit, but transaction limits may 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 responsibility for all actions taken with 
the Card.

2. CreDit Limit. You agree to use the Card within the credit limit we autho-
rize. 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 Agree-
ment, and only when there is no default.

3. ChAnge in terms. You agree that the terms of this Agreement are ap-
plicable 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 affect your obligation to 
pay the Account balance plus any finance charge and other charges you owe under 
this Agreement. You are responsible for all transactions made to your account af-
ter termination, unless the transactions were unauthorized. Should you choose to 
cancel your Account, the terms in effect at the time that you cancel the Account 
will apply until the outstanding balance of the Account is paid in full, unless you 
are in default. Your card will no longer be available for use for new transactions, 
including purchases, as the Account will be closed (if it is not already closed.) Any 
rewards points or miles you have earned, if applicable, will be forfeited unless they 
are redeemed before the Account is closed. If you do not notify us of your decision 
to terminate the account by the date stated in any notice we provide, or if you notify 
us but then use the Account after the date stated in the notice, you will be deemed to 
accept all changes to the Account’s terms and conditions of this Agreement. 

If you are in default because your payment has not been received within 60 
days of the due date, you do not have the right to reject the changes we make to 
this Agreement or the Account’s terms and conditions. 

change in your financial condition that may affect your creditworthiness and to 
provide us with a current loan application whenever we request one. You express-
ly authorize any person, partnership, association, firm, corporation or consumer 
reporting agency, upon our request, to furnish us with information concerning 
you relevant to the review and evaluation of this Account. You understand and 
agree that we may terminate your account upon reevaluation of your creditwor-
thiness.

5. finAnCe ChArges WILL BE IMPOSED IN THE FOLLOWING MAN-
NER 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 bill-
ing 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 bal-
ance from the date of posting. (3) The amount of the finance charge is calculated 
by multiplying the average daily balance for purchases by the monthly periodic 
rate. The monthly periodic rate is the yearly interest rate divided by 12.

b. CAsh ADVAnCes. (1) Finance charges accrue on all cash 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 (determined by 
including new cash advances and deducting any payments or credits and exclud-
ing  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 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 account 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 
indicated 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 payment on your Ac-
count  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 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.

not be processed, a charge may be made to your account in the amount indicated 
for “returned payment” on Pentagon Federal’s current Schedule of Service Fees 
brochure. In addition, for the 6 months following any such dishonored payment, 
any payments you make will be credited to your 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 payments will be applied first to the card bal-
ance bearing the highest rate of interest, then to each successive balance bearing 
the next highest rate of interest until the payment is exhausted. You understand 
and agree that payments will be applied in the following order: (1) late payment 
fee; (2) finance charge; (3) annual membership fee (if any); (4) credit life fee (if 
any); (5) previous balance cash advances; (6) previous balance purchases; (7) new 
cash advances; and (8) new purchases.

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 garnishment 
should  be  issued  against  any  of  your  property  including  any  of  your  Accounts 
with  us,  if  we  in  good  faith  consider  our  or  your  obligations  or  your  ability  to 
repay or perform your obligations with us unsafe or insecure, or if you fail to live 
up to any of your other agreements with us, to include any PenFed policy or pro-
cedure. Subject to law, if you default on this Agreement, we can, without giving 
anyone notice, demand immediate payment of the remaining balance due includ-
ing 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 exten-
sions 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 credi-
tor 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 account may vary 
with changes to the Prime Rate, which means your rate can increase. We calcu-
late the APR by adding a margin to the Prime Rate published in The Wall Street 
Journal. If The Wall Street Journal stops publishing the Prime Rate, we will select 
a similar reference rate and inform you on your billing statement or through a 
separate notice. The “Prime Rate” is the highest (U.S.) Prime Rate published in 
the Money Rates section of The Wall Street Journal. A margin is the percentage 
we add to the Prime Rate to calculate the APR. Twice a year, on the Tuesday in the 
last full week before January 1 and the Tuesday in the last full week before July 1, 
we determine what the Prime Rate is, as published in the Wall Street Journal. We 
then add a margin to the Prime Rate to get the APR. If the APR increases, you will 
have to pay a higher periodic finance charge and may have to make a higher mini-
mum payment. PenFed Platinum Cash Rewards APR: Prime plus 6.74%. PenFed 
Platinum Rewards APR: Prime plus 6.74%. Visa Secured APR: Prime plus 10.74%. 
Visa Gold APR: Prime plus 9.24%. MasterCard APR: Prime plus 10.74%. Visa Clas-
sic APR: Prime plus 10.74%. 

10. PenALty AnnuAL PerCentAge rAte. If your required 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 ad-
dition, your balance transfer rate for any outstanding balance transfer amounts 
will increase to the Penalty APR. After three consecutive months of on-time pay-
ments,  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. 

4.  finAnCiAL  ConDition  ChAnge.  You  agree  to  advise  us  of  any 

If your payment is not honored or we must return it to you because it could 

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11. PromotionAL AnnuAL PerCentAge rAte. At our option a spe-
cial 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 mini-
mum payment is not received within 60 days of the due date, any promotional 
APR and the periodic rate for purchases,  cash advances, and balance transfers 
will increase to the Penalty APR until 3 consecutive payments are made on time.

12. 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 ac-
count, even though you have requested cancellation from PenFed. You must can-
cel the recurring charge with the third party vendor/merchant. Upon receipt of 
your notice, we may close your Account or suspend your account privileges at any 
time without prior notice. You must return all of the Cards to us upon request.

13.  thirD  PArty  DisCLosure.  We  may  disclose  information  to  third 
parties  about  your  account  in  order  to  advise  third  parties,  such  as  credit  re-
porting  agencies  or  merchants  of  the  existence  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 extended or cash advanced 
under this account, you pledge all of your shares, deposits, payments and divi-
dends  which  may  be  received,  whether  held  jointly  or  individually,  up  to  the 
amount of your outstanding balance. The foregoing pledge includes the right to 
apply funds available to you in any jointly held account on your date of death. This 
does not include your individual retirement account (IRA). We may take all the 
shares needed by us to repay your credit extension or cash advance. If it is neces-
sary to take all of your shares for the payment of this account, you understand 
your membership in PenFed may end. Collateral securing other loans with the 
credit union may also secure this loan.

Additional notice for Visa Secured Cardholders: In consideration of PenFed’s 
issuing  you  a  card,  you  pledge  your  PenFed  Share  account  as  security  for  this 
line of credit. To protect us if you are in default on any credit extended or cash 
advanced under this account, you pledge all of your shares, deposits, payments 
and dividends which may be received, whether held jointly or individually, up to 
the amount of your outstanding balance. The foregoing pledge includes the right 
to apply funds available to you in any jointly held account on your date of death. 
This does not include your individual retirement account (IRA). We may take all 
the shares needed by us to repay your credit extension or cash advance. If it is nec-
essary 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 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.

16.  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 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 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 im-
pose. 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 at-
torney as well as give your express consent to enable us to charge against any bal-
ance 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 ac-
counts, including a deceased joint owner. This does not include your IRA or any 
other account for which this provision is not permitted. We may take such action 
without further notice to you or any joint owner. In regard to those funds that 
have a statutory protection, you understand that you may withdraw the special 
power of attorney and consent for PenFed to apply such funds to pay any such 
indebtedness by notifying us in writing. If your agency appointment or consent is 
withdrawn, PenFed may in its sole discretion terminate any and all services that 
you have with the credit union.

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 surrendered to us upon de-
mand or revocation. If we employ an agent to obtain the Card your Account will 
be charged with any related fees. No expired, revoked or otherwise invalid Card 
shall be used to obtain or attempt to obtain credit. You will remain responsible to 
pay the amount you owe us according to the terms of this Agreement. Cancella-
tion of the Account will also terminate any other products or services offered in 
conjunction with it. However, recurring charges from a third party vendor/mer-
chant will be charged to your Account, even though you have requested cancella-
tion. You must cancel the recurring charge with the third party merchant/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 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 repos-
sess 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 be-
come 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  nonrefundable  annual 
fee for each Account you have with us for which a Card is issued. You will pay 
only  one  annual  fee,  even  if  more  than  one  Card  is  issued  for  your  Account. 
The  fee  will  be  charged  annually  to  your  Account.  This  charge  will  appear  on 
your  periodic  statement  for  the  billing  cycle  when  it  first  becomes  effective. 

22.  foreign  trAnsACtions.  Purchases  and  cash  advances  made 

in  foreign  currencies  will  be  debited  from  your  account  in  U.S.  dollars. 
The  exchange  rate  between  the  transaction  currency  and  the  billing  cur-
rency  used  for  processing  international  transactions  is  either  a  wholesale 
market  rate  or  the  government  mandated  rate  in  effect  one  day  prior  to  the 
date  processed  by  Visa  and  may  include  an  international  transaction  fee. 

23.  member  ProteCtion  PLAn.  Your  purchase  of  the  Member  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 this Plan 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 Plan 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. You understand that the Plan protects only 
you as the primary Member-Borrower against protected events while you are enrolled 
in the Plan. Co-borrowers, co-signers, guarantors and additional card holders are not 
eligible for protection. The premium, method of calculation and assessment are subject 
to change. If these terms change we will provide written notice before the change goes 
into effect. Premiums will accrue on a daily basis and will be billed to your account 
monthly. Complete details of this optional Plan are included in The Member Protec-
tion Plan Program Agreement which you will receive upon enrollment.

24. trAVeL ACCiDent insurAnCe. We agree to provide you with Travel 
Accident  Insurance  at  no  direct  cost  to  you.  You,  your  spouse  and  unmarried 
dependent  children  will  be  automatically  insured  against  accidental  bodily  in-
juries 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 cancellation without prior notice. You understand and agree that the 
Certificate of Insurance controls all insurance terms and conditions to the exclu-
sion of any statements made in this Agreement regarding limitations, exclusions, 
and claims procedures.

25.  AssignAbiLity  of  ACCount.  You  agree  that  PenFed  may  at  any 
time sell, transfer or assign your account.

26. Lost/stoLen CArD. You are responsible for the possession and use of 
the Card and must maintain the confidentiality of the PIN we may assign you. 
You will notify us at once if you believe your Card has been lost or stolen, or if 
you have reason to believe the Card is being used without your permission. You 
may notify us by calling 800-556-LOST or 402-399-3600 collect from overseas, 
or  by  writing  to  us  at  Card  Services,  Pentagon  Federal  Credit  Union,  Box  456, 
Alexandria, VA 22313-0456. 

27. LiAbiLity for unAuthorizeD use. 

A.  VisA:  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, Alex-
andria, VA 22313-0456 if you suspect unauthorized use of the Card, and to co-
operate with us in the recovery of any amounts advanced based on unauthorized 
use. You will not be liable for any unauthorized use of the card.

b. mAsterCArD: You will not be liable for unauthorized use after you notify 
us 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. Your liability will not exceed $50.00. Your liability may further be 
limited if you notify us within 24 hours of discovery of the loss or theft of your 
card. 

statement notification does not relieve you from making any required minimum 
payment.  Upon  receipt  of  each  periodic  statement,  you  should  examine  it  and 
immediately  notify  us  in  writing  of  any  transaction  you  believe  to  be  in  error. 
If your Account is a joint account, we can send statements and notices to either 
of you. You agree to notify us promptly of any change in your name, address, or 
email address.

29. PAyment skiP oPtion. At our option, we may provide for a payment 
skip option, which means that you may be allowed to skip making the minimum 
periodic payment for specified billing cycles. If you accept this payment skip op-
tion, 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 min-
imum periodic payment and applicable late payment fees) will continue to apply.

30.  other  Agreements.  All  the  terms  and  conditions  of  any  other 
agreement  between  us  and  you  and/or  any  other  institution  that  is  part  of  a 
network  of  automated  teller  machines  (ATMs)  in  which  we  participate,  and 
any  applicable  rules  and  regulations,  also  apply  to  use  of  the  Card.  There  may 
be  minimum  and/or  maximum  limits  on  the  amount  of  a  cash  advance  dis-
pensed  from  electronic  terminals  which  accept  the  Card.  All  of  the  trans-
actions  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  busi-
ness  day.  You  understand  that  transactions  may  be  limited  in  some  areas. 
You agree that we do not waive our rights under this Agreement if we fail to 
assert them. The Agreement binds and benefits us and our successors and assigns 
and binds you, your estate and your personal representatives. 

31. APPLiCAbLe LAW. This Agreement and your Card and Additional Cards, 
and all questions about their legality, enforceability and interpretation, are gov-
erned by the laws of the Commonwealth of Virginia, USA.

your biLLing rights (Keep this notice for future use.) This notice tells you about 
your rights and our responsibilities under the Fair Credit Billing Act. 

WhAt  to  Do  if  you  finD  A  mistAke  on  your  stAtement.  If  you 
think  there  is  an  error  on  your  statement,  write  to  us  at:  Card  Services,  Pen-
tagon  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 electronically. You may call us, 
but if you do we are not required to investigate any potential errors and you may have 
to pay the amount in question.

WhAt  WiLL  hAPPen  After  We  reCeiVe  your  Letter.  When we receive 
your letter, we must do two things:
1. Within 30 days of receiving your letter, we must tell you that we received your letter. 

We will also tell you if we have already corrected the error.

2. Within 90 days of receiving your letter, we must either correct the error or explain to 

you why we believe the bill is correct.

While we investigate whether or not there has been an error:
• We cannot try to collect the amount in question, or report you as delinquent on that 

amount.

28.  stAtements.  We  will  bill  you  monthly,  on  a  date  selected  by  us,  for 
amounts due under this Agreement. If you elect to receive your credit card state-
ment electronically, you will receive an email alerting you when your statement 
is ready to be viewed online. Failure to receive a monthly statement or electronic 

•  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.