3. You must not yet have f ully paid for the purchase. 
If all of the cr iter ia above are met and you are still dissatisfied with the purchase, 

contact us in wr iting or elect ronically at: Card Ser vices, Pentagon Federal 
Credit Union, Box 456, Alexandria, VA 22313 -0456, or online at Pen Fed.org. 


W hile we investigate, the same r ules apply to the disputed amount as discussed 

above. Af ter we fi nish our investigation, we will tell you our decision. At that point, 

if we thin k you owe an amount and you do not pay, we may report you as delinquent. the motLey fooL PenfeD VisA Promise 

Cardholder Agreement 
and Disclosure Statement 

Information about this card is accurate as of August 2013 but may have changed since then. To 
find out what may have changed, please go to PenFed.org or call 866-386-7191. 

Form 1273-TMF 08/13 POD FDR M-109753 

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. A n Author ized 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 per mits others to use or sign a card. The words 
“our”, “we” and “us” mean PenFed or any of its assignees. Unless other wise stated, 
“Account ” means your Card account with us. 

1. Agreement. We agree to extend credit to you and advance amounts up to your 
credit limit, but transaction limits may apply. Your credit limit is not increased by 
any credit balance you may have on your account. You will sign the back of the Card 
as soon as you receive it. You agree to pay us for credit extended for the use of the 
Card by you or any other cardholder, along with all applicable fi nance charges, fees 

and insurance, if any apply. By signing, using or permit ting 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 responsibilit y for all actions taken with the Card. 

2. CreDit Limit. You agree to use the Card within the credit limit we authorize. 
You also ag ree that we can change you r credit limit at any time. We are not obligated 
to accept charges that would cause you to exceed your authorized credit limit. Any 
extension of credit to you, made or honored by us, shall be at such times and in such 
amounts and for such pur poses as to confor m to this Agreement, and only when 
there is no default. 
3. ChAnge in terms. You agree that the ter ms of this Agreement are applicable to 
any cardholder. You also agree that we can change the ter ms of this Agreement at any 
time by adding, deleting, or modifying any provision of the Agreement. 
Ter mination of the accou nt by you or PenFed will not affect your obligation to 

pay the Account balance plus any finance charge and other charges you owe under 

this Agreement. You are responsible for all transactions made to your account af ter 
termination, unless the transactions were unauthor ized. Should you choose to cancel 
your Account, the ter ms in effect at the time that you cancel the Account will apply 
until the outstanding balance of the Accou nt is paid in f ull, u nless you are in 
default. You r 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 ter minate the account by the date stated in any notice 
we provide, or if you notif y us but then use the Accou nt 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 ter ms and conditions. 

4. finAnCiAL ConDition ChAnge. You agree to advise us of any change in your 
fi nancial condition that may affect your credit wor thiness and to provide us with a 

cur rent loan application whenever we request one. You expressly authorize any per


son, par tnership, association, fir m, cor poration or consumer repor ting agency, upon 

our request, to f ur nish us with infor mation concer ning you relevant to the review and 
evaluation of this Account. You understand and agree that we may terminate your 
account upon reevaluation of you r creditwor thiness. 

5. finAnCe ChArges WILL BE IMPOSED I N THE FOLLOWING M AN N ER 
AND WILL BE IN AMOU NTS NOT I N EXCESS OF THOSE PER MITTED BY 
LAW: 
(A) PUrChAses: (1) No finance charge will be imposed during the next billing 
cycle (defined as the time inter val between regular monthly billing statement dates) 
if you pay the entire new balance shown on the cur rent periodic statement and we 
receive your pay ment on or before the payment due date show n 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, hereaf ter refer red to as purchases. The 
average daily balance is the sum of all outstanding purchases, which is deter mined 
by including new purchases and deducting payments or credits and excluding any 

unpaid finance charge for you r Account on each day of the billing cycle divided by 

the number of days in the billing cycle. A purchase appear ing on the periodic statement 
is considered a part of the outstanding balance from the date of posting. (3) The 

amount of the fi nance charge is calculated by multiplying the average daily balance 

for purchases by the monthly periodic rate. The monthly per iodic rate is the yearly 
interest rate divided by 12. 

(b) CAsh ADVAnCes. (1) Finance charges accr ue on all cash advance amounts 
from the date charged to your Account and continue so long as such amounts remain 
outstanding. (2) A fi nance charge will be imposed on the average daily balance of 

cash advances, which is the sum of the cash advances (deter mined by including new 
cash advances and deducting any payments or credits and excluding any unpaid finance 
charge) outstanding each day du ring the billing cycle, divided by the number 
of days in the billing cycle. A cash advance appearing on the periodic statement is 
considered a par t of the outstanding balance f rom the date of posting. (3) The amount 

of finance charge is calculated by multiplying the average daily balance for cash 

advances by the monthly periodic rate. 

6. PAyments. A payment delivered by regular U.S. mail must be sent to the add ress 
indicated on your periodic statement. You r pay ment by mail must be a check or money 
order in U.S. dollars with your account number on the check or money order and 
d raw n on a U.S. fi nancial institution, and be accompanied by the payment voucher 

from your statement. Write your account number on your check or money order. All 
such pay ments 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 per iodic statement. 
Pay ments received at other locations or not confor ming to these procedures may be 
delayed in posting, but not more than 5 business days f rom 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 pay ments received from 
PenFed members who have held membership for six months or less will be credited 
to you r 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 
th rough our automated telephone ser vice, member ser vice representatives, or our 
website will be subject to any processing times disclosed with those pay ments. 

You r minimum pay ment 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 per iodic 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 f ully 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 amou nt you wish over the minimum payment due. 

If your payment is not honored or we must retur n it to you because it could not be 
processed, a charge may be made to you r account in the amount indicated for “ret 
ur ned pay ment” on Pentagon Federal’s current Schedule of Ser vice 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 amou nt of the payment will not be available to you for 10 calendar days. 

You u nderstand and ag ree that payments will be applied first to the card balance 
bear ing the highest rate of interest, then to each successive balance bearing 
the next highest rate of interest u ntil the pay ment is exhausted. You understand 
and agree that pay ments will be applied in the following order: (1) 
finance charge; (2) credit life fee (if any); (3) previous balance cash advances; 

(4) previous balance purchases; (5) new cash advances; and (6) new purchases. 
7. DefAULt. You will be in default if you fail to make any payment on time, if you 
exceed the credit limit established for the Account, if you become insolvent or file 

bank r uptcy, if you become incompetent or die, if a judgment or gar nish ment should 
be issued against any of your proper ty including any of you r Accounts with us, if we 
in good faith consider our or your obligations or your ability to repay or perfor m your 
obligations with us unsafe or insecure, or if you fail to live up to any of your other 
agreements with us, to include any PenFed policy or 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 u nder this Agreement. You also 

agree our obligation for f ur ther credit extensions shall im mediately end and we may 
ter minate you r Account without fu r ther 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 

bankr uptcy or if any other creditor tries to seize your proper t y. 

If collection is necessar y, you agree to pay all costs of collection, including attorney’s 
fees and cour t costs, in an amount not more than 25 percent of the balance due. 

8. VAriAbLe r Ates. O ne or more A PR s that apply to you r a cc ou nt may va r y wit h 
cha nges to the Pr i me Rate, wh ich mea ns you r r ate can i ncrease. We calcu late the 
A PR by add i ng a ma rg i n to the P r i me R ate publ ished i n T he Wall St reet Jou r nal. 
If T he Wal l St reet Jou r nal st ops publish ing the P r ime R at e, we w i l l sele ct a simila 
r reference rate a nd i n for m you on you r billi ng st at e me nt or th roug h a sepa rat e 
not ice. T he “P r ime R at e” is t he h ighest ( U.S.) P r i me R at e published i n t he Money 
R ate s sect ion of T he Wall St reet Jou r nal. A marg i n is t he p erce nt age we add to 
the P r ime Rate to calculat e the A PR . Twice a ye ar, on the Tuesd ay i n t he last f u ll 
week before Ja nu a r y 1 a nd the Tuesd ay i n the la st f ull week before July 1, we de ter 
m ine what the P r ime Rate is, a s publ ishe d i n the Wall St re et Jou r nal. We then 
add a ma rg in of 6.74% to the P r i me R at e to get the A PR. If the A PR i ncreases, you 
w ill have to pay a h igher p e r iodic fi n ance ch a rge a nd may have to m a ke a h ig her 

minimu m 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 ter minate 
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 repay ment of 
any obligations ar ising from the use of the Account. In addition, recur ring charges 
f rom 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 par t y vendor/merchant. Upon receipt of your notice, we may close your Account 
or suspend your account privileges at any time without pr ior notice. You must 
retur n all of the Cards to us upon request. 
11. thirD PArt y DisCLosUre. We may disclose infor mation to third par ties 
about your accou nt in order to advise third par ties, such as credit repor ting agencies 
or merchants of the existence or condition of your Account, to evaluate your cur rent 
credit worthiness or as other wise provided by law. 
12. To protect us if you are in default on any credit extended or cash advanced under 
this account, you pledge all of your shares, deposits, payments and dividends which 
may be received, whether held jointly or individually, up to the amount of your outstanding 
balance. The foregoing pledge includes the right to apply fu nds available 
to you in any jointly held account on your date of death. This does not include your 
individual retirement accou nt (IR A). We may take all the shares needed by us to repay 
your credit extension or cash advance. If it is necessar y to take all of your shares 
for the payment of this account, you understand your membership in PenFed may 
end. Collateral secur ing other loans with the credit union may also secure this loan. 
13. CArD Dishonor. If a merchant ref uses the Card, we will not have any liabilit y 
or responsibility. No cash ref und will be made to or accepted by you with respect 
to any adjustment for goods or ser vices purchased. All adjust ments will be made 
by credit to your Pen Fed 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 ser vices may be ter minated at our discretion. You f urther 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 
har mless from any suits or other legal action or liability, directly or indirectly, resulting 
f rom such illegal use. 
15. AUthorizeD User. You may request us to issue a Card to an individual who 
has no fi nancial 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 ter minate or modify this Agreement. You may ter minate an Author ized 
User’s authority to access your Account at any time. To do this, you must ret ur n the 
Card to Pen Fed. You ag ree that you are responsible for all charges and cash advances 
made by an Authorized User, including charges made before the Card is ret ur ned, 
recurring charges, or charges made without the use of the Card initiated by the Authorized 
User after ter mination of the Author ized User’s access. 

16. Lien. You hereby appoint Pen Fed as your agent under a special power of attor ney 
as well as give your express consent to enable us to charge against any balance in any 
of you r accounts, including accounts on which you are a joint owner, to include any 
other wise statutorily protected f unds that may not other wise 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 IR A or any other account for which 
this provision is not permitted. We may take such action without f ur ther notice to 
you or any joint owner. In regard to those funds that have a statutor y protection, you 
understand that you may withdraw the special power of attor ney and consent for Pen-
Fed to apply such f unds to pay any such indebtedness by notif ying us in wr iting. If 
your agency appointment or consent is withdrawn, Pen Fed may in its sole discretion 
ter minate 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 sig nat ure panel on the back of the Card(s). The 
Card remains the proper t y of Pentagon Federal Credit Union and may be revoked 
without notice at any time. The Card must be sur rendered to us upon demand or 
revocation. If we employ an agent to obtain the Card your Account will be charged 
with any related fees. No expired, revoked or other wise 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 ter ms of this Agreement. Cancellation of the Account 
will also ter minate any other products or ser vices offered in conjunction with it. 
However, recur r ing charges from a third par ty vendor/merchant will be charged to 
your Accou nt, even though you have requested cancellation. You must cancel the 
recurring charge with the third par ty 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 ter minate, limit or modify the use of the checks without 
notice to you, and you ag ree to sur render 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 activit y is an action of default. The checks at all times 
remain the proper t y of PenFed and we may repossess them without the use of cou r t 
process. All of the ter ms 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 f rom your Account. If so authorized by PenFed, 
your use of a personal identification number (PI N) for such pur pose shall constit ute 

your signature. Paid checks become ou r proper ty and will not be retur ned 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, Pen Fed 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 w rite it. If you do and the check is presented 
for pay ment before its date, Pen Fed, in its sole discretion may ret urn 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 f rom your account in U.S. dollars. The exchange rate bet ween 
the t ransaction cur rency and the billing cur rency used for processing international 
transactions is either a wholesale market rate or the gover nment mandated rate in 
effect one day prior to the date processed by Visa. 
20. CreDit insUrAnCe PLAn. You r purchase of the Credit Insurance Plan 
(“Plan”) is optional. W hether or not you pu rchase this protection will not affect your 
application for credit or the ter ms of any existing credit agreement you have with 
Pen Fed. If you do purchase Credit Insu rance you may cancel it at any time by notifying 
us in writing. You understand that you may rescind this plan within 30 days af ter 
the date your Credit Insurance becomes effective. If you rescind, any premiums you 
have already paid will be credited to your account. We can ter minate 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 ter ms change we 
will provide written notice before the change goes into effect. Premiums will accr ue 
on a daily basis and will be billed to your account monthly. Complete details of this 
optional Credit Insurance are included in The Credit Insu rance Plan Program Agreement 
which you will receive upon en rollment. 

21. AssignAbiLity of ACCoUnt. You agree that Pen Fed may at any time sell, 
t ransfer or assig n your account. 
22. Lost/stoLen CArD. 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 instr uctions on that statement. If we fi nd no er ror after 

investigation, you owe us the original amount plus applicable interest and fees. 
You are responsible for the possession and use of the Card and must maintain 

the con fidentiality of the PI N we may assign you. You will notif y 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 per mission. You may notif y us by calling 800-556 -LOST or 
402-399-3600 collect f rom overseas, or by w riting to us at Card Ser vices, Pentagon 
Federal Credit Union, Box 456, Alexandria, VA 22313-0456. 

23. LiAbiLity for UnAUthorizeD Use. You are liable for all author ized use of 
any Card issued u nder the Agreement regardless of the credit limit or the par t y using 
it. You agree to notif y us im mediately by calling 800-556 -LOST or 402-399-3600 
collect from overseas, or wr iting to us at Card Ser vices, Pentagon Federal Credit 
Union, Box 456, Alexandr ia, 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 unauthor ized 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) elect ronically. You fur ther understand and 
agree that if you cur rently have any other PenFed credit cards, you will also receive 
those statements electronically. You will receive an email aler ting you when your 
statement is ready to be viewed online. Failu re to receive a monthly statement or 
elect ronic st at ement not i fi cat ion does not relieve you f rom ma k i ng a ny r eq ui red m i nimum 
pay ment. Upon receipt of each periodic statement, you should examine it and 
immediately notif y us in wr iting of any transaction you believe to be in er ror. If your 
Account is a joint account, we can send statements and notices to either of you. You 
agree to notif y 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 per i-
odic 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 pay ment, all the ter ms and conditions of this Agreement (including minimum 
per iodic payment and applicable late pay ment fees) will continue to apply. 

26. other Agreements. All the ter ms and conditions of any other agreement 
bet ween 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 r ules 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 f rom electronic ter minals which accept 
the Card. All of the transactions made by elect ronic 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 ou r 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 asser t 

them. The Agreement binds and benefits us and our successors and assig ns and binds 

you, you r estate and your personal representatives. 

27. APPLiCAbLe LAw. This Agreement and your Card and Additional Cards, and 
all questions about their legality, enforceability and inter pretation, are gover ned by 
the laws of the Commonwealth of Virginia, USA. 
yoUr biLLing rights (Keep this notice for future use.) This notice tells you about 
you r 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 er ror 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 Secu re Online Message Center at: Pen Fed.org In your letter give us the 
following information: 

• Account infor mation: Your name and account number. 
• Dollar amount: The dollar amount of the suspected er ror. 
• Description of problem: If you thin k there is an er ror 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 er ror 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 thin k is w rong. 
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 amou nt in question. 

whAt wiLL hAPPen After we reCeiVe yoUr Letter When we receive your 
let ter, we must do two things: 

1. Within 30 days of receiving your let ter, we must tell you that we received your letter. 
We will also tell you if we have already corrected the er ror. 
2. Within 90 days of receiving your let ter, we must either cor rect the error or explain 
to you why we believe the bill is cor rect. 
While we investigate whether or not there has been an error: 

• We cannot t r y to collect the amount in question, or repor t 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 u npaid amount against your credit limit. 
After we finish our invest igat ion, one of two things wil l 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 thin k you owe. 
If you receive our explanation but still believe your bill is wrong, you must wr ite to 
us within 10 days telling us that you still ref use to pay. If you do so, we cannot repor t 
you as delinquent without also reporting that you are questioning your bill. We must 
tell you the name of anyone to whom we repor ted you as delinquent, and we must 
let those organizations k now when the matter has been settled between us. If we do 

not follow all the r ules above, you do not have to pay the fi rst $50 of the amount you 

question even if your bill is correct. 

yoUr rights if yoU Are DissAtisfieD with yoUr CreDit CArD PUrChAses. 

If you are dissatisfied wit h the goods or ser vices that you have purchased with you r 

credit card and you have tried in good faith to cor rect the problem with the merchant, 
you may have the r ight not to pay the remaining amou nt due on the purchase. 

To use this right, al l of the following must be true: 

1. The purchase must have been made in your home state or within 100 miles of 
your cur rent mailing address, and the purchase price must have been more than 
$50. ( Note: Neither of these is necessar y if your purchase was based on an advertisement 
we mailed to you, or if we own the company that sold you the goods or 
ser vice s.) 
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 accou nt do 
not qu alif y.