IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

VISA PROMISE

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.)  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 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 

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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. We may end 
your promotional Balance Transfer APR if we do not receive 
your payment within 60 days of the due date.

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. 

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. 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.  ASSIGNABILITY  OF  ACCOUNT.  You  agree  that  PenFed 
may at any time sell, transfer or assign your account.

22.  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. 

23.  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.

24. STATEMENTS. We will bill you monthly, on a date selected 
by us, for amounts due under this Agreement. As a condition of 
the issuance of this card, you agree to receive your credit card 
statement(s)  electronically.  You  further  understand  and  agree 
that  if  you  currently  have  any  other  PenFed  credit  cards,  you 
will also receive those statements 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 
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.

25. 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 

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IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS

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.

26.  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. 

27.  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.

28.  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 1273 Web  10/17

IMPORTANT: PLEASE READ AND RETAIN FOR YOUR RECORDS