Such risk-payoff structures are perfectly acceptable in the business world. Indeed taking calculated risks is often the mark of a successful business leader. For public policy, however, this strikes me as a deal that should not be made.
The law protects consumer rights and abolishes the “predatory” lending practices I referred to earlier. One of the requirements is that monthly credit card statements should include information on how much that credit is actually costing the consumer. The statement now indicates the amount of time it will take for the client to pay off his balance if he only makes the minimum payments.