SAMPLE STATEMENT 2 HOME LOAN CHECKER
INTEREST CHARGED ON 21ST MARCH 2000 - CORRECT BUT DOES NOT CONSIDER LEAP YEAR

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 20th March 2000 is the date prior to the ‘interest debit’ being checked
( 21ST March 2000).

3. The opening balance is the last balance shown at the end of the start date ( $179,757.98 ).

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 lenders did not use 366 days for leap years and this resulted in the interest charge being $2.06 higher for the 3 weeks.

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 ( $754.98 - the statement shows $754.98 which is correct if it was not a leap year – see next screen).
This is obtained by clicking the Compute Interest box.

 

SAMPLE STATEMENT 2 HOME LOAN CHECKER
INTEREST CHARGED ON 21ST 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 $752.92 NOT $754.98
as charged by the lender and shown on the statement.

 

4-B SAMPLE STATEMENT - No. 2
MAJOR NON-BANK LENDER
Page 1 of 1

[1] Name of lender.

[2] Address of lender.

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

[4] Telephone number of the lender.

[5] Facsimile number of the lender.

[6] Account number.

[7] This statement begins on the 1st January, 2000 and ends on 31st March, 2000.
In this case it is a three-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] 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.

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


[10] 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.

NOTE: This lender is charging (debiting ) interest to the borrowers account at the end of each month + every time a transaction occurs + on the 8th of every second month. This has the effect of increasing the interest that the borrower is paying.

The lender is effectively charging a higher interest rate than they have quoted.

[11] No of Days This shows the number of days for which interest has been calculated on the outstanding
balance and then charged to the borrowers’ account.


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



4-B SAMPLE STATEMENT - No. 2
MAJOR NON-BANK LENDER
Page 1 of 1



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


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


[15] Totals for this period:
This shows the totals of all the relevant transactions for the Debit ($3,177.72) and the
Credit ($3,592.39) columns for the period from 1 January to 31 March and the Balance outstanding ($179,634.56) at 31st March,2000.


[16] Total interest for this period:
This shows the totals of all the interest charged ($3,175.56) for the period from
1 January to 31 March.


[17] Interest for tax year to date:
The amount of $8,929.69 is the total interest paid by the borrower from the start of the financial year ( usually 1st July in most countries. It may be a different date such as 1st January or 1st October in other countries ) up to the end date of this statement.


[18] Government charges:
This shows the totals of all the government charges ($2.16) for the period from
1 January to 31 March.


[19] Date Period: This is the date on which this statement was produced by the lender.


[20] Page 1: This is the page number of the statement.

4-B SAMPLE STATEMENT - No. 2
MAJOR NON-BANK LENDER
Page 1 of 1


TRANSACTIONS
01 Jan Opening Balance An amount of $180,049.23 is owing by the borrower at 1st January, 2000.

21 Jan Loan Repayment $1,177.35 was repaid by the borrower and credited to the account to reduce the
balance owing on which interest is now calculated each day.

21 Jan Interest Interest of $704.41 was calculated at 6.80% for 21 days on the outstanding balance of
$180,049.23 and debited to the account. This increased the balance owing by $704.41.

21 Jan FID Government taxes of $0.71 were charged on the loan repayment of $1,177.35 and
debited to the account to increase the balance owing.

31 Jan Interest * Interest of $334.56 was calculated at 6.80% for 10 days on the outstanding balance of
$179,577.00 and debited to the account. This increased the balance owing by $334.56.

08 Feb Interest * Interest of $268.14 was calculated at 6.80% for 8 days on the outstanding balance of
$179,911.56 and debited to the account. This increased the balance owing by $268.14.

08 Feb Interest Rate Review The interest rate being charged from this date has increased from 6.80% to 7.30%.

21 Feb Loan Repayment $1,177.35 was repaid by the borrower and credited to the account to reduce the
balance owing on which interest is now calculated each day.

21 Feb Interest * Interest of $467.77 was calculated at 7.30% for 13 days on the outstanding balance of
$180,179.70 and debited to the account. This increased the balance owing by $467.77.

21 Feb FID Government taxes of $0.71 were charged on the loan repayment of $1,177.35 and
debited to the account to increase the balance owing.

28 Feb Interest * Interest of $287.15 was calculated at 7.30% for 7 days on the outstanding balance of
$179,470.83 and debited to the account. This increased the balance owing by $287.15.

21 Mar Loan Repayment $1,237.69 was repaid by the borrower and credited to the account to reduce the
balance owing on which interest is now calculated each day.

21 Mar Interest * Interest of $754.98 was calculated at 7.30% for 21 days on the outstanding balance of
$179,757.98 and debited to the account. This increased the balance owing by $754.98.

21 Mar FID Government taxes of $0.74 were charged on the loan repayment of $1,237.69 and
debited to the account to increase the balance owing.

31 Mar Interest * Interest of $358.55 was calculated at 7.30% for 10 days on the outstanding balance of
$179,276.01 and debited to the account. This increased the balance owing by $358.55.

*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.

NOTE: This lender is charging (debiting ) interest to the borrowers account at the end of each month + every time a transaction occurs + on the 8th of every second month. This has the effect of increasing the interest that the borrower is paying.
The lender is effectively charging a higher interest rate than they have quoted.


4-B CHECK LIST
DOES STATEMENT No 2 INCLUDE THE FOLLOWING:

MISTAKES and/ or ABNORMALITIES in this Statement:

[1] This lender is charging (debiting ) interest to the borrowers account at the end of each month + every time a transaction occurs + on the 8th of every second month. This has the effect of increasing the interest that the borrower is paying. The lender is effectively charging a higher interest rate than they have quoted.

[2] The interest charged on 21st February 2000 is undercharged by $ 1 . 28. All other calculations are correct *.

[3] This is a ‘leap year’ and the lender should be using 366 days instead of 365 days in their formula.
The result is ‘overcharges’ each interest period of between $1 and $2. i.e., $8 for the 3 months shown.
[4] This lender does not provide a summary page although it does provide summarized results at the end of the statement.

[5] This lender does not provide the number of each statement issued.
 

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