Saturday, September 22, 2007

Credit cards as a hypothetical example

I will not be continuing my Creationism posts today. I do plan to return to them soon.

Then, I plan to answer the response about Iraq. I am sorry for the change in plans. Plans, in reality, often are altered for one reason or another. “The best laid plans … often go astray.” Thank you for your understanding and patience.

How many unborn toddlers were murdered today because of the humanistic, paganish, barbaric decisions of the United States Supreme Court?

Stop the
Murder of

“Anyone, then, who knows the good he ought to do and doesn’t do it, sins.” James 4: 17 (NIV)

I am not saying that this is true. It is a hypothetical example of what is possible. I am using Bank of America as a hypothetical example. It could just as well be any major bank or company that controls a major credit card system.

Let’s pretend that Bank of America charges $30 for any monthly payment that is late.
Let’s also pretend that Bank of America has 10,000,000 active customers who use their card each month. Let’s further pretend that one customer always sends his payment at least eight days before the payment due date. If the payment due date is on a Saturday or a Sunday, the payment is sent eight days before the previous Friday.

Let’s pretend that one month he receives a notice that his monthly payment is late and he is penalized the $30. He has no way of knowing if the payment was actually late or why the payment is designated as being late. It could be because Bank of America was negligent in processing the payment. It could be that the post office was slow sending it. It could be a number of other reasons.

Let’s pretend that, for whatever reason, 1% of those 10,000,000 customers were notified that their payment was late and they were being penalized $30 in that particular month. Let’s pretend further that this is a monthly occurrence where a new 1% of the customer base is charged a $30 penalty each month.

What would be the results of such a late penalty payment for the company? Here is the math:

10,000,000 total active customers.

1% or 100,000 of those 10,000,000 customers are charged a $30 late fee each month.

$3,000,000 additional money is collected in late fees each month.

$36,000,000 additional money is collected over the course of one year for nothing more than a $30 late penalty fee per customer for 1% of the total customers in the system.

With 1% of the customers being charged a late fee in any given month, it would take 8.333 years (or 100 months) for the same individual to be charged with another late fee. Do you think that 8.333 years (or 100 months) later he would remember his previous “mysterious” late fee charge?

As Everett M. Dirksen, a one time Senator from Illinois, has been quoted as saying, “A million here, a million there, it soon adds up to real money!”


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