The Interest Savers

SAMPLE STATEMENT 3 HOME LOAN CHECKER
INTEREST CHARGED ON 13th AUGUST 1998 CONSISTENT MASSIVE OVERCHARGES

Notes:

1. The start date is the date of the previous ‘interest debit’ shown on the statement
( 9th July 1998).

2. The end date of 12th August 1998 is the date prior to the ‘interest debit’ being checked
( 13th August 1998).

3. The opening balance is the last balance shown at the end of the start date ( $204,908.52 ).

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.

6. The balances shown on the left hand side of the screen under Daily Balance Entries have been inserted by clicking the ‘ADD’ box. When the balance changes the new at the end of the day is inserted. 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 ( $1,754.38 - the statement shows $4,116.62 which is incorrect. This is an overcharge of $2,362.24 in one month. Total overcharges for this client amounted to over $30,000 all of which were refunded.
This is obtained by clicking the Compute Interest box.

[1] Name of lender.

[2] Address of lender.

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

[4] Account type and number

[5] Page number and number of pages in this statement

[6] This statement begins on 9th July, 1998 and will show all transactions since that date.

[7] This statement ends on 2nd August,, 1999 and will show all transactions from the start date of this statement until this end date.

The statement Beginning and Ending dates show you the period that the statements covers. In this case it is a thirteen-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.

[8] Telephone number of the lender.

[9] Facsimile number of the lender.

[10] This is the amount owing by the borrower ($202,497.91) at the start date of this statement (09-07-1998)

[11] Current Interest Rate:
The interest rate is shown as a % being used to calculate interest on the outstanding balance owing.
Interest is usually calculated at the end of each day on the balance owing at the end of the day.
All of the daily interest amounts are normally totalled at the end of the month (or on the same date of each month) and charged (debited) to the account to increase the balance owing.

[12] Other Party: This column shows the other party or reference number involved in the transaction.

[13] Description: This column shows a description of the transaction.
i.e. Repayment (reduces the balance owing)
or Interest Charged (increases the balance owing)

[14] Debits Column: This column shows the dollar amount of each transaction that increases the balance owing.
E.g. Interest Charged

[15] Credits Column: This column shows the dollar amount of each transaction that decreases the balance owing.
E.g. Repayments

[16] 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.

[17] Balance Column: This column shows the balance owing after each transaction and/or at the end of each day
when a transaction has occurred.

[18] This shows the amount owing by the borrower ($226,982.96) at the end date of this statement (2-08-1999).

Mistakes:
[19] Note : The lender neglected to charge interest on 02 June, 1999.

[20] Note : The lender has made significant ‘overcharges’ of interest from 09 July, 1998 to August, 1999.
See how the interest charged has suddenly dropped from amounts of $2,410, $3,644 and $4,438
to $1,725.24 (Aug 02). $1,725.24 is the correct calculation.

This major Australian bank was mistakenly using an interest rate of 24.15% instead of 8.95% as
shown on the bank statement.

The borrower had been overcharged an amount in excess of $30,000.

The overcharged amount plus compounded* interest was repaid to the borrower.
*Compounded interest is the additional interest that was charged on the ‘overcharged amount’ of $30,000.

4-C SAMPLE STATEMENT - No. 3
MAJOR AUSTRALIAN BANK
Page 1 of 1

PARTICULARS

Dr Interest Jul 09 Interest of $2,410.61 was charged for the prior month and debited to the account to

increase the balance owing to $204,908.52 on which interest is calculated each day.

Loan Pmt Aug 03 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $203,202.09 on which interest is calculated each day.

Dr Interest Aug 13 Interest of $4,116.62 was charged for the prior month and debited to the account to

increase the balance owing to $207,318.71 on which interest is calculated each day.

Loan Pmt Sep 02 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $205,612.28 on which interest is calculated each day.

Dr Interest Sep 10 Interest of $3,337.94 was charged for the prior month and debited to the account to

increase the balance owing to $208,950.22 on which interest is calculated each day.

Loan Pmt Oct 02 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $207,243.79 on which interest is calculated each day.

Dr Interest Oct 15 Interest of $4,206.82 was charged for the prior month and debited to the account to

increase the balance owing to $211,450.61 on which interest is calculated each day.

Loan Pmt Nov 02 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $209,744.18 on which interest is calculated each day.

Dr Interest Nov 12 Interest of $3,412.23 was charged for the prior month and debited to the account to

increase the balance owing to $213,156.41 on which interest is calculated each day.

Loan Pmt Dec 02 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $211,449.98 on which interest is calculated each day.

Dr Interest Dec 10 Interest of $3,446.08 was charged for the prior month and debited to the account to

increase the balance owing to $214,896.06 on which interest is calculated each day.

Loan Pmt Jan 05 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $213,189.63 on which interest is calculated each day.

Dr Interest Jan 14 Interest of $4,349.03 was charged for the prior month and debited to the account to

increase the balance owing to $217,538.66 on which interest is calculated each day.

Loan Pmt Feb 02 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $215,832.23 on which interest is calculated each day.

Dr Interest Feb 11 Interest of $3,526.15 was charged for the prior month and debited to the account to

increase the balance owing to $219,358.38 on which interest is calculated each day.

Loan Pmt Mar 02 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $217,651.95 on which interest is calculated each day.

Dr Interest Mar 11 Interest of $3,559.85 was charged for the prior month and debited to the account to

increase the balance owing to $221,211.80 on which interest is calculated each day.

Loan Pmt Apr 06 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $219,505.37 on which interest is calculated each day.

Dr Interest Apr 15 Interest of $4,495.28 was charged for the prior month and debited to the account to

increase the balance owing to $224,000.65 on which interest is calculated each day.

Loan Pmt May 03 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $222,294.22 on which interest is calculated each day.

Dr Interest May 13 Interest of $3,644.73 was charged for the prior month and debited to the account to

increase the balance owing to $225,938.95 on which interest is calculated each day.

Loan Pmt Jun 02 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing to $224,232.52 on which interest is calculated each day.

Note : The lender neglected to charge interest in June, 1999. This is a rarity!

Note: The lender now calculates and debits interest on the same day of the month that the payment is

due.

Loan Pmt Jul 02 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing on which interest is calculated each day.

Dr Interest Jul 02 Interest of $4,438.06 was charged for the prior month and debited to the account to

increase the balance owing on which interest is calculated each day.

The net effect of the above two transactions was to increase the balance owing to

$226,964.15.

Loan Pmt Aug 02 A loan payment of $1,706.43 was made and credited to the account to reduce the

balance owing on which interest is calculated each day.

Dr Interest * Aug 02 Interest of $1,725.24* was charged for the prior month and debited to the account to

increase the balance owing on which interest is calculated each day.

The net effect of the above two transactions was to increase the balance owing to

$226,982.96.

Closing balance at end of period: An amount of $226,982.96 is owing by the borrower as at 2^nd August, 2000.

* Note the dramatic reduction in interest charged once the bank was made aware of their mistake in

calculating the interest amounts.

YES NO

[1] A Summary Page to show the following information: *

Borrowers’ name and address *

Borrowers’ account number *

Number of statements issued *

Page number for this statement *

Statement Start Date *

Statement End Date *

Previous Statement end date *

Opening Balance *

Closing Balance *

Total of all Credits *

Total of interest charged for the period *

Total of bank fees & charges for the period *

Total of govt. fees & charges for the period *

Total of all reversals during this period *

Current interest rate charged *

Interest rate changes *

Required minimum repayments *

Lender’s telephone number for enquiries *

MAIN STATEMENT to include:

[2] Borrowers’ name and address *

[3] Borrowers’ account number *

[4] Number of statements issued *

[5] Page number for this statement *

[6] Statement Start date *

[7] Statement End date *

[8] Date Column *

[9] Transaction Description *

[10] Debits Column *

[11] Credits Column *

[12] Balance Column *

[13] Interest Rate *

[14] Interest Rate Changes & dates *

[15] Lender’s telephone number for enquiries *

MISTAKES and/ or ABNORMALITIES in this Statement:
[1] The lender neglected to charge interest in June, 1999. This is a rarity!

[2] The lender has made significant ‘overcharges’ of interest from 09 July, 1998 to August, 1999.
See how the interest charged has suddenly dropped from amounts of $2,410, $3,644 and $4,438
to $1,725.24 (Aug 02). $1,725.24 is the correct calculation for the period ended 2nd August 1999.

[3] This major Australian bank was mistakenly using an interest rate of 24.15% instead of 8.95% as
shown on the bank statement.

[4] The borrower had been overcharged an amount in excess of $30,000+. The overcharged amount plus compounded* interest was repaid to the borrower. *Compounded interest is the additional interest that was charged on the ‘overcharged amount’ of $30,000+.

[1] International Bank Lender No. 4 [7] Statement Date: July 7, 2000

[2] Address : Level 1, 227 Error St.

Overchargedale.

[3] Tel: 56890045 [8] Statement Period:

[4] Fax: 56790453 01/01/00 - 30/06/00

[5] Account name(s): [9] Payment Due : H & G Customer 24^th of month

22 Borrower St

Loanville. [10] Page Number : two

[6] Account type and number

Home Loan HL765889

Date [11] Transaction [12] Debits [13] Credits [14] Balance [15]

Opening Balance 249,666.80

24 Feb 00 Interest Charge 1,308.66 250,975.46

24 Feb 00 Payment 1,309.44 249,666.02

24 Feb 00 FID 0.78 249,666.80

24 Feb 00 New Interest Rate = 7.15%

24 Feb 00 New Repayment Amount = 1,488.48

28 Feb 00 Interest Charge 10.40 249,677.20

28 Feb 00 Payment – Prin Reduction 13,292.02 236,385.18

28 Feb 00 FID 7.98 236,393.16

28 Feb 00 FID Payment 7.98 236,385.18

28 Feb 00 New Repayment Amount = 1,409.30

24 Mar 00 Interest Charge 1,409.30 237,794.48

24 Mar 00 Payment 1,409.30 236,385.18

24 Mar 00 FID 0.84 236,386.02

24 Mar 00 New Interest Rate = 7.65%

24 Mar 00 New Repayment Amount = 1,507.85

24 Apr 00 Interest Charge 1,507.01 237,893.03

24 Apr 00 New Interest Rate = 7.89%

24 Apr 00 New Repayment Amount = 1,555.16

26 Apr 00 Interest Charge 10.40 237,903.43

26 Apr 00 Payment 1,507.85 236,395.58

26 Apr 00 FID 0.90 236,396.48

24 May 00 Interest Charge 1,554.26 237,950.74

24 May 00 Payment 1,555.16 236,395.58

24 May 00 FID 0.93 236,396.51

24 May 00 New Interest Rate = 8.15%

24 May 00 New Repayment Amount = 1,606.40

16 Jun 00 Interest Charge 1,230.41 237,626.92

16 Jun 00 Payment 2,600.00 235,026.92

16 Jun 00 FID 1.56 235,028.48

26 Jun 00 Interest Charge 523.33 235,551.81

26 Jun 00 Payment 1,606.40 233,945.41

26 Jun 00 FID 0.96 233,946.37

30 Jun 00 Interest Charge Reversal 10.40

Closing Balance [16] 233,935.97

Summary of Account for the period : 01/07/99 to 30/06/00 [17]

Interest Paid : $16,711.67 Annual Percentage Rate : 8.15%

[18] NOTE: Interest calculations are incorrect.