Mike Levin: “What credit card companies do now is charge interest to people, even though they pay part of their indebtedness on time.…”

“What credit card companies do now is charge interest to people, even though they pay part of their indebtedness on time. It would be fine if they were just charging interest on part of the indebtedness which was outstanding and not paid on time. That is perfectly appropriate. But if somebody, for instance, starts with a zero balance, charges $1,000 on their credit card, pays $900 on time by the due date, then that person is not only charged interest on the $100 owed, that person is charged interest on the full $1000, even the part of his bill that is paid by the due date. I don't know any other situation where somebody who pays an obligation on time is nonetheless charged interest on the part that is paid.”