Truth in Lending: 7.8.2.1 25% Limit
The Credit CARD Act provides that the total amount of fees that a consumer is required to pay with respect to the account during the first year must not exceed 25% of the account’s credit limit.872 This 25% limit applies to both fees that the issuer charges to the account, as well as fees that the issuer requires the consumer to pay through other means.873 Thus, the issuer cannot avoid the 25% limit by requiring the consumer to pay an amount above 25% by direct payments to the issuer, such a