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 device or check used to obtain credit or cash from the 
Account.  Unless  otherwise  stated,  “Account”  means  your 
Card account with us. 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  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  agree 
to 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 authorize. You also agree that we can change 
your credit limit at any time. We are not obligated to accept 
charges  that  would  cause  you  to  exceed  your  authorized 
credit  limit  but  we  may  do  so  in  our  sole  discretion.  Any 
extension of credit to you, made or honored by us, shall be 
at  such  times  and  in  such  amounts  and  for  such  purposes 
as  to  conform  to  this  Agreement,  and  only  when  there  is  
no default.

3.  CHANGE  IN  TERMS.  You  agree  that  the  terms  of 
this  Agreement  are  applicable 
to  any  cardmember. 
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.  We  will 
give  you  notice  of  any  such  changes,  if  required  by  law. 
     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 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 stated 
in  the  notice,  you  will  be  deemed  to  accept  all  changes  to 
the  Account’s  terms  and  conditions  of  this  Agreement. 
     If you are in default because your payment has not been 
received within 60 days of the due date, you do not have the 
right to reject the changes we make to this Agreement or the 
Account’s terms and conditions. 

4.  FINANCIAL  CONDITION  CHANGE.  You  agree  to 
advise  us  of  any  change  in  your  financial  condition  that 
may  affect  your  creditworthiness  and  to  provide  us  with 

a  current  loan  application  whenever  we  request  one.  You 
expressly  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 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 
between  regular  monthly  billing  statement  dates)  if  you 
pay the entire new balance shown on the current periodic 
statement  and  we  receive  your  payment  on  or  before  the 
payment due date shown on the statement. (2) In all other 
cases, a finance charge will be imposed based on the average 
daily  balance  of  all  purchases  and  debit  adjustments, 
hereafter referred to as purchases. The average daily balance 
is the sum of all outstanding purchases, which is determined 
by  including  new  purchases  and  deducting  payments  or 
credits  and  excluding  any  unpaid  finance  charge  for  your 
Account  on  each  day  of  the  billing  cycle  divided  by  the 
number of days in the billing cycle. A purchase appearing 
on  the  periodic  statement  is  considered  a  part  of  the 
outstanding  balance  from  the  date  of  posting.  (3)  The 
amount  of  the  finance  charge  is  calculated  by  multiplying 
the  average  daily  balance  for  purchases  by  the  monthly 
periodic rate. The monthly periodic rate is the yearly interest 
rate divided by 12.

(B)  CASH  ADVANCES:  (1)  Finance  charges  accrue  on 
all  cash  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 
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 
finance charges at the regular or promotional APR available 
at  the  time  of  the  balance  transfer  and  on  purchases  at 
the  purchase  APR.    For  instance  if  you  transfer  $1,000  at 
a  promotional  rate  of  0%  APR  and  then  make  a  purchase 
of $200, you will immediately accrue finance charges at the 
purchase rate, forgoing the grace period.  To avoid finance 
charges  on  new  purchases  after  you  transfer  a  balance, 
you  must  pay  all  balances  on  your  account  including  any 
balances that you transfer in full by the due date.  

6.  PAYMENTS. A  payment  delivered  by  regular  U.S.  mail 
must  be  sent  to  the  address  indicated  on  your  periodic 
statement. Your payment by mail must be a check or money 
order in U.S. dollars with your account number on the check 
or money order and drawn on a U.S. financial institution, 
and  be  accompanied  by  the  payment  voucher  from  your 
statement.  Write  your  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 PM 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  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  subject 
to  any  processing  times  disclosed  with  those  payments. 
     Your minimum payment due is the greater of $15 or 2% 
of  the  new  balance  plus  the  past  due  amount,  if  any,  and/
or all amounts in excess of the authorized credit line/limit 
shown  on  the  periodic  statement.  If  the  new  balance  does 
not  exceed  $15,  only  the  new  balance  total  is  due  and  is 
shown as the minimum payment due. All past due or over 
limit amounts are due and must be fully paid immediately 
upon notification. You may, however, pay the total amount 
due, which is shown as the new balance, or you may pay any 
additional amount you wish over the minimum payment due. 
          If  your  payment  is  not  honored  or  we  must  return  it 
to  you  because  it  could  not  be  processed,  a  charge  may 
be  made  to  your  account  in  the  amount  indicated  for 
“returned  payment”  on  PenFed’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 the minimum monthly 
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  purchase 
balances.You  understand  and  agree  that  payments  in 
excess  of  the  minimum  monthly  payment  will  be  applied 
first  to  the  card  balance  bearing  the  highest  rate  of 
interest,  then  to  each  successive  balance  bearing  the  next 
highest  rate  of  interest  until  the  payment  is  exhausted.

7. DEFAULT. You will be in default if you fail to make any 
payment by the Payment Due Date shown on your Account 
statement, 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, 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  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 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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 
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 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. 
On  the  first  Tuesday  of  the  first  full  week  of  the  month,  we 
determine  what  the  Prime  Rate  is  as  published  in  the  Wall 
Street  Journal.  We  then  add  a  margin  of  6.74%  to  the  Prime 
Rate  to  get  the  APR  for  the  following  month.  If  the  APR 
increases, you will have to pay a higher periodic finance charge 
and may have to make a higher minimum payment.

9.  PROMOTIONAL  ANNUAL  PERCENTAGE  RATE. 
At  our  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 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. 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 
information  to  third  parties,  including  but  not  limited  to 
credit reporting agencies or merchants, about your account 
in  order  to  advise  such  third  parties  of  the  existence  or 
condition of your Account, to evaluate your current credit 
worthiness, or as otherwise provided by law. 

12.  GRANT  OF  SECURITY  INTEREST  IN  SHARES.  To 
protect  us  if  you  are  in  default  on  any  credit  extended  or 
cash  advanced  under  this  account,  you  have  granted  a 
security  interest  in  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  security  interest  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 necessary to take all of your shares for the payment of 
this account, you understand your membership in PenFed 
may  end.  Collateral  securing  other  loans  with  the  credit 
union may also secure this loan.

13. CARD DISHONOR. If a merchant refuses the Card, we 
will not have any liability or responsibility. No cash refund 
will  be  made  to  or  accepted  by  you  with  respect  to  any 

adjustment for goods or services purchased. All adjustments 
will be made by credit to your PenFed Account by a properly 
executed credit voucher issued by the merchant. 

14. ILLEGAL CARD USE. You agree that illegal use of your 
Card by 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 
consent 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  understand 
that  you  may  withdraw  the  special  power  of  attorney  and 
consent  for  PenFed  to  apply  such  funds  to  pay  any  such 
indebtedness  by  notifying  us  in  writing.  If  your  agency 
appointment  or  consent  is  withdrawn,  PenFed  may  in  its 
sole discretion terminate any and all services that you have 
with the credit union.

17. ISSUANCE/USE OF CARD. Upon receipt of the Card(s) 
you  and  all  other  cardholders  agree  that  you  will  sign 
the  signature  panel  on  the  back  of  the  Card(s).  The  Card 
remains  the  property  of  Pentagon  Federal  Credit  Union 
and may be revoked without  notice at  any time. The  Card 
must  be  surrendered  to  us  upon  demand  or  revocation.  If 
we  employ  an  agent  to  obtain  the  Card  your  Account  will 
be  charged  with  any  related  fees.  No  expired,  revoked 
or  otherwise  invalid  Card  shall  be  used  to  obtain  or 
attempt  to  obtain  credit.  You  will  remain  responsible  to 
pay the amount you owe us according to the terms of this 
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 merchant/vendor. 

18.  ISSUANCE/USE  OF  CHECKS.  If  we  issue  you  checks, 
these  checks  are  treated  as  cash  advances  when  they  are 
used  and  presented  for  payment.  We  may  refuse  to  issue 
or  reissue  and  may  also  terminate,  limit  or  modify  the 
use  of  the  checks  without  notice  to  you,  and  you  agree  to 
surrender the checks upon our demand or upon learning of 

our cancellation or 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.

19.  FOREIGN  TRANSACTIONS.  Purchases  and  cash 
advances  made  in  foreign  currencies  will  be  debited  from 
your  account  in  U.S.  dollars.  The  exchange  rate  between 
the transaction 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 credited 
to your account. We can terminate this Agreement by giving 
you  notice  at  least  30  days  in  advance  of  the  termination. 
The  premium,  method  of  calculation  and  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 Debt Protection 
are 
in  The  Debt  Protection  Plan  Program 
Agreement  which  you  will  receive  upon  enrollment.

included 

21.  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  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  cancellation  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 
PenFed may at any time sell, transfer or assign your account.

23.  LOST/STOLEN  CARD.  You  are  responsible  for  the 
possession  and  use  of  the  Card  and  must  maintain  the 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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 
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 
statement  has  an  error  or  a  charge  you  did  not  authorize, 
you  must  tell  us  in  writing  within  60  days  after  you  get 
that  statement.  You  must  follow  all  instructions  on  that 
statement.  If  we  find  no  error  after  investigation,  you  owe 
us  the  original  amount  plus  applicable  interest  and  fees.  
     You are liable for all authorized use of any Card issued 
under  the  Agreement  regardless  of  the  credit  limit  or  the 
party  using  it.  You  agree  to  notify  us  immediately  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 
unauthorized use of the card.

25.  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 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 
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.

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 
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.

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  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  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 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. 

28.  MILITARY  LENDING  ACT.  Federal 
law  provides 
important protections to members of the Armed Forces and 
their dependents relating to extensions of consumer credit. 
In general, the cost of consumer credit to a member of the 
Armed Forces and his or her dependent may not exceed an 
annual percentage rate of 36 percent. This rate must include, 
as applicable to the credit transaction or account: The cost 
associated with credit insurance premium; fees for ancillary 
products  sold  in  connection  with  the  credit  transaction; 
any application fee charged (other than certain applications 
fees for specified credit transactions or accounts); and any 
participation fee charged (other than certain participation 
fees for a credit card account).  For more information, please 
contact PenFed at 800-247-5626.

29.  APPLICABLE  LAW.  This  Agreement  and  your  Card 
and Additional Cards, and all questions about their legality, 
enforceability and interpretation, are governed by the laws 
of the Commonwealth of Virginia, USA.

YOUR  BILLING  RIGHTS  (Keep  this  notice  for  future 
use.)  This  notice  tells  you  about  your  rights  and  our 
responsibilities under the Fair Credit Billing Act. 

WHAT  TO  DO  IF  YOU  FIND  A  MISTAKE  ON  YOUR 
STATEMENT.  If  you  think  there  is  an  error  on  your 
statement, write to us at: Card Services, Pentagon Federal 
Credit  Union,  Box  456,  Alexandria,  VA  22313-0456. 
You may also contact us on the Web via our Secure Online 
Message Center at: PenFed.org 
In your letter give us the following information:
• Account information: Your name and account number.
• Dollar amount: The dollar amount of the suspected error.
•  Description  of  problem:  If  you  think  there  is  an  error  on 
your bill, describe what you believe is wrong and why you 
believe it is a mistake.

You must contact us:
• Within 60 days after the error appeared on your statement.
• At least 3 business days before an automated payment is 
scheduled,  if  you  want  to  stop  payment  on  the  amount 
you think is wrong.

You  must  notify  us  of  any  potential  errors  in  writing  or 
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.

•  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 
organizations  know  when  the  matter  has  been  settled 
between us. If we do not follow all the rules above, you do 
not have to pay the first $50 of the amount you question even 
if your bill is correct. 

YOUR RIGHTS IF YOU ARE DISSATISFIED WITH YOUR 
CREDIT  CARD  PURCHASES.  If  you  dissatisfied  with  the 
goods or services that you have purchased with your credit 
card and you have tried in good faith to correct the problem 
with  the  merchant,  you  may  have  the  right  not  to  pay  the 
remaining 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 purchase, contact us in writing or electronically 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 
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 October 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  10/17

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS