R was an approved cardholder of Y bank. R made some purchases through the use of the said credit card and defaulted in paying for said purchases. She subsequently received a letter dated January 5, 2018 from Y Bank, demanding payment of the amount of P100,000.00.

Under the Terms and Conditions Governing the Issuance and Use of the card, the charges or balance thereof remaining unpaid after due date indicated on the monthlyStatementof Accounts shall bear interest at the rate of 3% per month and an additional penalty fee equivalent to another 3% per month. Is the penalty reasonable or iniquitous? Explain.