JULY 22, 2008 --

LPR has been mentioning the very high punitive interest rates charged by credit card on people who have paid late.   People should know the impact of these high rates.  

Herewith two examples.  On a Discover card, 28.99% interest, this writer has a minimum payment due of $185, of which $169.26 goes to interest. This means the balance is reduced by $15.  Interest to principal ratio of more than 10 - 1

Washington Mutual, 28.74% interest, requires a minimum payment  of $494, with $334.75  applied to interest.  Interest to principal ratio of 2 - 1.

Need more explanation be given for anxiety? Where is Congress? Where is the media?

Curiously, in spite of such predatory business practices, the stocks at some banks, including Washington Mutual, have not been doing very well of late.

Could it be that the predatory approach is a poor model for success in business.