IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

PENFED DEFENDER VISA SIGNATURE® CARD 
Cardholder Agreement and Disclosure Statement 

DEFINITIONS.  The  “Card”  means  the  Pentagon  Federal 
Credit  Union  (PenFed)  credit  card  which  we  issue  to  you 
under  this  Agreement,  and  includes  any  device  or  check 
used  to  obtain  credit  or  cash  from  the  Account.  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  “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. 

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  cardholder,  along  with  all  applicable  finance 
charges, fees and insurance, if any apply. By signing, using 
or permitting others to use the Card, you agree to the terms 
and conditions contained in this 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 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.  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  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 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  requests  for 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

an  advance,  if  you  die,  file  for  bankruptcy  or  if  any  other 
creditor tries to seize your property. 

If  collection  is  necessary,  you  agree  to  pay  all  costs  of 
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. In addition, recurring charges from a third 
party  vendor/merchant  will  be  charged  to  your  account, 
even though you have requested cancellation from PenFed. 
You must cancel 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.

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 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 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. 

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. Should we decline to pay any check, 
or  if  you  instruct  us  not  to  pay  a  check,  PenFed  shall  not 
be liable, except for gross negligence, for any action it takes 
regarding payment or nonpayment of a check. You will not 
date any check later than the date that you write it. If you 
do and the check is presented for payment before its date, 
PenFed, in its sole discretion may return it unpaid, or pay 
it. If we pay it, we will charge the Account. PenFed may, in 
its sole discretion, pay a check which has a date more than 
six months old.

19.  FOREIGN  TRANSACTIONS.  Purchases  and  cash 
advances  made  in  foreign  currencies  will  be  debited  from 
your  account  in  U.S.  dollars.  The  exchange  rate  between 
the transaction 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 Visa.

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 included in The Debt 
Protection Plan Program Agreement which you will receive 
upon enrollment.

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.

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 

23.  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 

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IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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. 

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. 

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 by calling 
800-556-LOST  or  402-399-3600  collect  from  overseas,  or 
writing  to  us  at  Card  Services,  Pentagon  Federal  Credit 
Union, Box 456, Alexandria, VA 22313-0456 if you suspect 
unauthorized use of the Card, and to cooperate with us in the 
recovery of any amounts advanced based on unauthorized 
use. You will not be liable for any 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 email 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 

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 800-247-5626.

Form 472 Web  10/17

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS