The Interest Savers

SAMPLE STATEMENT 4 HOME LOAN CHECKER
INTEREST CHARGED ON 24TH MARCH 2000 OVERCHARGES

Notes:

1. The start date is the date of the previous ‘interest debit’ shown on the statement
( 28th February 2000).

2. The end date of 23rd March 2000 is the date prior to the ‘interest debit’ being checked
( 24th March 2000).

3. The opening balance is the last balance shown at the end of the start date ( $236,385.18 ).

4. The interest rate is the interest rate shown on the statement. The interest rate should be shown on your statement. If it is not shown, the lender must provide the interest rates.

5. The number of days box is automatically set at 365 days which is used in the lenders formula.
You may change this to 366 days for leap years as the lender should use 366 in their formula for
leap years. This lender has NOT used 366 days in this leap year resulting in additional overcharging.

6. When the balance changes the new balance at the end of the day is inserted by clicking the ‘ADD’ box shown on the left hand side of the screen under Daily Balance Entries.
Lenders calculate interest each day on the balance at the end of the day.

7. The Revised Interest Rate box at the top right side of the screen allows for interest rate changes.

8. The Interest Debit amount at the bottom of the screen shows the interest that should be on the statement ( $1,157.64 - the statement shows $1,409.30 which is incorrect ). This is an overcharge of $251 . 66 in 25 days. When 366 days is used for leap years the overcharges are greater. See next screen shot.
This is obtained by clicking the Compute Interest box.

SAMPLE STATEMENT 4 HOME LOAN CHECKER
INTEREST CHARGED ON 24th MARCH 2000 INCORRECT WHEN CONSIDERING LEAP YEAR

Notes:

1. The only difference between this screen and the previous screen is we have used 366 days for the calculations because of the leap year ( 2000 ).

The resulting interest debit at the bottom of the screen shows the interest to be $1,154.48 NOT $1,157.64. This is an additional overcharge of $3.16 on top of the major overcharge of $251 . 66 for the 25 days.

[1] Name of lender.

[2] Address of lender.

[3] Telephone number of the lender.

[4] Facsimile number of the lender.

[5] Name(s) and address of the borrower(s)

[6] Account number.

[7] Date Period: 7^th July, 200 is the date on which this statement was produced by the lender.

[8] This statement begins on 1^st January, 1999 and ends on 30^th June, 2000.

In this case it is a twelve-months period. It should show all transactions that have occurred during that period. E.g. It will show :

· the opening balance [ i.e. the balance owing at the start of the period ]

· the closing balance [ i.e. the balance owing at the end of the period ]

· all credits [ i.e. all repayments and any other payments and or reversals

made to the account to reduce the balance owing ]

· all debits [ i.e. all interest charges (usually monthly)

all bank fees and charges (usually monthly)

all government fees and charges (usually monthly)

any reversals that will increase the balance owing.

[9] Payment Due: Each monthly payment is due on 24^th of each month.

[10] Page 2: This is the 2^nd page of the statement.

[11] Date Column: The dates on which each transaction occurs are shown in this column.

There may be more than one transaction on any date.

Debit transactions (Interest Charged, Bank Fees and Charges, Withdrawals, Government Charges etc.) will increase the balance owing

Credit transactions (Repayments made by the borrower) will reduce the balance owing.

[12] Transaction: This column shows a description of the transaction.

i.e. Repayment (reduces the balance owing)

or Interest Charged (increases the balance owing)

[13] Debits Column: This column shows the dollar amount of each transaction that increases the balance owing.

E.g. Interest Charged

[14] Credits Column: This column shows the dollar amount of each transaction that decreases the balance owing.

E.g. Repayments

[15] Balance Column: This column shows the balance owing after each transaction and/or at the end of each day

when a transaction has occurred.

[16] Closing Balance: An amount of $233,935.97 is owing by the borrower as at 30^th June, 2000.

[17] Summary: This shows the total of Interest Paid for the 12 months ($16,711.67) and the annual

interest rate currently being charged (8.15%) at the end of the statement period (30^th June,2000).

[18] Interest Calculations:

The majority of interest charges are incorrect.

24^th March = $1,409.30 (should be $1,157.64 - Leap year calculation should be $1,154.48)

24^th April = $1,507.01 (should be $1,535.86 - Leap year calculation should be $1,531.67)

24^th May = $1,554.26 (should be $1,430.81 - Leap year calculation should be $1,426.91)

16^th June = $1,230.41 (should be $1,214.04 - Leap year calculation should be $1,210.73)**

26^th June = $ 523.33 (should be $ 524.79 - Leap year calculation should be $ 523.36)

** There is no explanation as to why interest was charged at the early date of 16^th June

instead of 24^th June. This results in the borrower paying additional interest on the interest

charged on 16^th June.

An amount of $10.40 was charged as interest on 28^th Feb (4 days after the normal monthly interest was charged on 24^th Feb) and on 26^th April (2 days after the normal monthly interest was charged on 24^th April).

No explanation is given for these additional charges.

There is an interest charge ‘reversal’ of $10.40 on 30^th June. No explanation is given.

MISSING

Totals for this period: The totals of all the relevant transactions for the Debit and the Credit columns for the period

from 1^st January to 30^th June are missing.

Government charges: The totals of all the government charges for the period from 1^st January to 30^th June are missing.

Interest Rate: The interest rate being used at the start of the statement is not shown on this page of the

statement.

TRANSACTIONS

Opening Balance The amount of $250,975.46 is the amount owing by the borrower at the start

of page 2 of this statement (i.e. on 24^th February, 2000 ).

24 Feb 00 Interest Charge Interest of $1,308.66 has been charged and debited to the account.

The balance owing and on which interest will now be calculated has been increased by this amount.

24 Feb 00 Payment An amount of 1,309.44 was paid by the borrower to reduce the balance

owing to the lender. This reduces the amount on which interest is now calculated.

24 Feb 00 FID 0.78 cents is the government tax applicable to the above payment of

$1,309.44 and debited to the borrowers’ account. This increases the balance owing by 0.78 cents.

24 Feb 00 New Interest Rate The interest rate to be applied to the balance owing from this date is 7.15%.

24 Feb 00 New Repayment A minimum monthly repayment amount of $1,488.48 is now required.

28 Feb 00 Interest Charge Interest of $10.40 has been charged and debited to the account.

The balance owing and on which interest will now be calculated has been increased by this amount.

No explanation has been given as to why this interest has been charged only

4 days after the previous interest charge.

28 Feb 00 Payment -Prin Reduction An additional amount of $13,292.02 was paid by the borrower to reduce the

balance owing to the lender. This reduces the amount on which interest is now calculated.

This appears to be an unusual amount for the borrower to pay. It is likely that the borrower paid an amount of $13,300 less $7.98 FID.

28 Feb 00 FID $7.98 is the government tax applicable to the above payment of

$13,292.02 and debited to the borrowers’ account. This increases the balance owing by $7.98.

28 Feb 00 FID Payment The FID amount of $7.98 was paid by the borrower and reduces the balance

owing on which interest is now calculated.

28 Feb 00 New Repayment A minimum monthly repayment amount of $1,409.30 is now required.

The lower repayment would be a result of the reduced balance outstanding

on which interest is now calculated.

24 Mar 00 Interest Charge Interest of $1,409.30 has been charged and debited to the account.

The balance owing and on which interest will now be calculated has been increased by this amount.

24 Mar 00 Payment An amount of 1,409.30 was paid by the borrower to reduce the balance

owing to the lender. This reduces the amount on which interest is now calculated.

24 Mar 00 FID 0.84 cents is the government tax applicable to the above payment of

$1,409.30 and debited to the borrowers’ account. This increases the balance owing by 0.84 cents.

24 Mar 00 New Interest Rate The interest rate to be applied to the balance owing from this date is 7.65%.

24 Mar 00 New Repayment A minimum monthly repayment amount of $1,507.85 is now required.

24 Apr 00 Interest Charge Interest of $1,507.01 has been charged and debited to the account.
The balance owing and on which interest will now be calculated has been increased by this amount.

24 Apr 00 New Interest Rate The interest rate to be applied to the balance owing from this date is 7.89%.

24 Apr 00 New Repayment A minimum monthly repayment amount of $1,555.16 is now required.

26 Apr 00 Interest Charge Interest of $10.40 has been charged and debited to the account.
The balance owing and on which interest will now be calculated has been increased by this amount.

No explanation has been given as to why this interest has been charged only
2 days after the previous interest charge.

26 Apr 00 Payment An amount of 1,507.85 was paid by the borrower to reduce the balance
owing to the lender. This reduces the amount on which interest is now calculated.

26 Apr 00 FID 0.90 cents is the government tax applicable to the above payment of
$1,507.85 and debited to the borrowers’ account. This increases the balance owing by 0.90 cents.

24 May 00 Interest Charge Interest of $1,554.26 has been charged and debited to the account.
The balance owing and on which interest will now be calculated has been increased by this amount.

24 May 00 Payment An amount of 1,555.16 was paid by the borrower to reduce the balance
owing to the lender. This reduces the amount on which interest is now calculated.

24 May 00 FID 0.93 cents is the government tax applicable to the above payment of
$1,555.16 and debited to the borrowers’ account. This increases the balance owing by 0.93 cents.

24 May 00 New Interest Rate The interest rate to be applied to the balance owing from this date is 8.15%.

24 May 00 New Repayment A minimum monthly repayment amount of $1,606.40 is now required.

24 Mar 00 New Interest Rate The interest rate to be applied to the balance owing from this date is 7.65%.

24 Mar 00 New Repayment A minimum monthly repayment amount of $1,507.85 is now required.

24 Apr 00 Interest Charge Interest of $1,507.01 has been charged and debited to the account.

The balance owing and on which interest will now be calculated has been increased by this amount.

24 Apr 00 New Interest Rate The interest rate to be applied to the balance owing from this date is 7.89%.

24 Apr 00 New Repayment A minimum monthly repayment amount of $1,555.16 is now required.

26 Apr 00 Interest Charge Interest of $10.40 has been charged and debited to the account.

The balance owing and on which interest will now be calculated has been increased by this amount.

No explanation has been given as to why this interest has been charged only

2 days after the previous interest charge.

26 Apr 00 Payment An amount of 1,507.85 was paid by the borrower to reduce the balance

owing to the lender. This reduces the amount on which interest is now calculated.

26 Apr 00 FID 0.90 cents is the government tax applicable to the above payment of

$1,507.85 and debited to the borrowers’ account. This increases the balance owing by 0.90 cents.

24 May 00 Interest Charge Interest of $1,554.26 has been charged and debited to the account.

The balance owing and on which interest will now be calculated has been increased by this amount.

24 May 00 Payment An amount of 1,555.16 was paid by the borrower to reduce the balance

owing to the lender. This reduces the amount on which interest is now calculated.

24 May 00 FID 0.93 cents is the government tax applicable to the above payment of

$1,555.16 and debited to the borrowers’ account. This increases the balance owing by 0.93 cents.

24 May 00 New Interest Rate The interest rate to be applied to the balance owing from this date is 8.15%.

24 May 00 New Repayment A minimum monthly repayment amount of $1,606.40 is now required.

MISTAKES and/ or ABNORMALITIES in this Statement:

[1] All interest calculations are incorrect. See note 18 above for details of mistakes.

[2] An amount of $10.40 was charged as interest on 28th Feb (4 days after the normal monthly interest was charged
on 24th Feb) and on 26th April (2 days after the normal monthly interest was charged on 24th April).
No explanation is given for these additional charges.
There is an interest charge ‘reversal’ of $10.40 on 30th June. No explanation is given.

[3] The totals of all the relevant transactions for the Debit and the Credit columns for the period from
1st January to 30th June are missing.

[4] The totals of all the government charges for the period from 1st January to 30th June are missing.

[5] The interest rate being used at the start of the statement is not shown on this page of the statement.

[1] International Bank Lender No. 5 [7] Lost/Stolen Cards: 56845128

[2] Address : Level 1, 427 Undercharge St.

Feasible Valley.

[3] Statement & Account Enquiries: 56890045 [8] Statement Period:

[4] Fax: 56790453 09/10/98 - 09/01/99

[5] Account name(s): H & G Customer

22 Borrower St

Loanville. [9] Page Number : 1

[6] Account type and number

Home Loan HL463289

Date [10] Transaction [11] Debits [12] Credits [13] Balance [14]

1998

09 Oct Balance Brought Forward 0.00

Opening Interest Rate on Borrowing 6.700% [17]

Loan Drawdown 75,542.47

Loan Payment 162.41

Loan Payment 200.00 75,180.06

16 Oct Periodic Transfer - Payment 200.00 74,980.06

23 Oct Periodic Transfer – Payment 200.00 74,780.06

30 Oct Periodic Transfer – Payment 200.00 74,580.06

06 Nov Periodic Transfer – Payment 200.00 74,380.06

10 Nov Interest 220.41* 74,600.47

Effective Date: 09 Nov 1999

13 Nov Periodic Transfer – Payment 200.00 74,400.47

20 Nov Periodic Transfer – Payment 200.00 74,200.47

27 Nov Periodic Transfer – Payment 200.00 74,000.47

04 Dec Periodic Transfer – Payment 200.00 73,800.47

09 Dec Interest 254.06 * 74,054.53

11 Dec Periodic Transfer – Payment 200.00 73,854.53

18 Dec Periodic Transfer – Payment 200.00 73,654.53

29 Dec Periodic Transfer – Payment 200.00 73,454.53

1999

02 Jan Periodic Transfer – Payment 200.00 73,254.53

08 Jan Periodic Transfer – Payment 200.00 73,054.53

09 Jan Interest 297.10 * 73,351.63

[15] Totals At End Of Page 76,314.04 2,962.41 73,351.63

[16] Final balance may be subject to adjustment

[17] Interest charges are incorrect. They are all ‘understated’ in favour of the borrower.