Originally Posted by
Diplomatico
And there's your answer. The attempt to "game the system" by reducing the annual fee to a level that prevents Chase from charging the card's annual fee.
"
The CARD Act and implementing regulations provide that an issuer may not require consumers to pay fees (other than penalty fees) during the first year in which an account is opened which exceed 25% of the total initial credit line."
Chase Ritz-Carlton Annual Fee Waiver Trick ? TravelinPoints
Chase not prevented from charging the annual fee. As stated in your quote (and in the Act itself), that provision only applies to the
initial credit line. Chase is misinterpreting federal law to our benefit.