LEAP YEARS - THE GREAT RIP - OFF !

EVERY FOUR YEARS LENDERS RIP-OFF BILLIONS IN EXTRA INTEREST
THE ‘AVERAGE’ BORROWER IS CHARGED AN ADDITIONAL $40 TO $50
MULTIPLY THE NUMBER OF CREDIT CARDS, HOME LOANS, PERSONAL LOANS,
BUSINESS ACCOUNTS ETC BY $40 EVERY FOUR YEARS

AND GUESS WHAT - THEY LEND THIS OVERCHARGED INTEREST BACK
TO YOU AND CHARGE YOU INTEREST ON YOUR OWN MONEY


In a leap year (every four years) there are 366 days and the financier should divide the quoted interest rate by 366.
Most financiers choose to use 365 instead of 366. This results in a slightly higher rate being applied for the 366 days
of the year and in higher interest being applied to the borrowers’ loan accounts and higher profits to the financiers.

This results in lenders who use 365 days in their formula ripping off their customers by approximately
$35,000,000 to $40,000,000 every four years for every million accounts that they have.

i.e. if a bank has 5,000,000 accounts they could be earning an additional $170,000,000 to $200,000,000
every 4 years. This money really belongs to their customers … and guess what … they lend it back to their customers and charge them interest.

See the following samples for effect of leap years on interest charges.
 

SAMPLE STATEMENT No. 3 EXAMPLE :
INTEREST CHARGED ON 25TH AUGUST 2000 CALCULATION USING 365 DAYS

1. The number of days box is automatically set at 365 days which is used in the lenders formula.
This lender has NOT used 366 days in this leap year resulting in an interest charge of $2,329.14.
The interest charge ( if using 366 days ) should be only $2,322.77 … the overcharge is $6.37 for the month. See next screen shot.

 

SAMPLE STATEMENT No. 4
INTEREST CHARGED ON 25th AUGUST 2000 CALCULATION USING 366 DAYS

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 $2,322.77 NOT $2,329.14. This is an additional overcharge of $6.37 for the month.



2 Imagine the results of this type of overcharging every 4 years if this amount is multiplied by 12 (for the year)
i.e. $6.37 X 12 = $76.44 and then applied to all accounts including : Home Loans, Personal Loans,
Credit Cards, Overdrafts, Commercial Loans, Investment Loans, Business Loans etc.

The result … millions and millions of accounts multiplied by $76.44 every 4 years … gives BILLIONS AND BILLIONS of extra dollars to the lenders.