You failed to pay your credit card billing for one (1) year. Now they are offering you a SPECIAL OFFER based on this Statement of Account.
CHIANG MAI CHARTERED CITY CREDIT CARD COMPANY (Statement of Account)
************Amount*billed*********Comments
Principal*******P*20,000.00*********This is your total
************************************availments/transactions.
Interest**********10,221.37*********@3.5% interest per
************************************month, compounded
************************************monthly. This will
************************************amount to 51.1% p.a.
Penalty**********12,000.00*********@5% per month; will
************************************reach 60% p.a.
Total*Due********P 42,221.37********111.1% total charges
************************************for one (1) year
Collection Exp. ****10,000.00********How they incur this
************************************expense for a P20,000
************************************debt baffles me.
Sub-total********P 52,221.37*********Total charges is now
************************************161.1% and counting.
Attorney’s Fee*****13,055.34********@25% for failure to pay
Total**********Php 65,276.71********Are you crying now?
“Special Offer”******(13,055.34)*******Waiver of atty’s fee.
************************************Actually, it should not
************************************be included in the first
************************************place; there is no
************************************litigation yet.
Final*Amt********P*52,221.37*******This*is*the*total*due*to
************************************be restructured
Interest*************9,399.85********But….another*18%*p.a.*
************************************interest!**
Final*Amt******Php*61,621.22*******Pay*in*straight*12*equal*
************************************monthly*installments
***************Php*5,135.10/mo*****37.96%*effective
**********************************interest;*47%*of*Principal
SUMMARY:
Here’s*what*they*earned*on*your*P20,000.00*balance:
******************Amount*billed******Comments
51%**Interest******10,221.37************Interest*on*interest
60%**Penalty******12,000.00************Remember*your*
****************************************Indian friend?
50%*Collection*Fee*10,000.00***********Is*this*the*chit*
****************************************from Manila*Hotel?
47%*Addt’l.*interest*9,399.85************Interest*on*interest*
****************************************earning*interest
*******************41,621.22*
Divide*by**********20,000
*********************208*%**************Now*you*know******************************************why*it*is*called*
*****************************************“excessive,*
*****************************************unconscionable*and*
*****************************************immoral*charges”?*
*Next…*Sample*Proforma*Letter
