Consumer Credit Regulation: 8.5.2.2.3 Security deposits charged to the account
One type of abusive fee-harvester card involves a “secured” card in which the security deposit is charged to the card’s credit line, consuming most of the available credit for the account. To address this abuse, the Official Interpretations of Regulation Z provides that a security deposit that is charged to a credit card account is a fee for purposes of the 25% limit.394 Thus, these faux security deposits are now limited to 25% of the credit line.