Over 50 years Lenders charge only Compound Interest.

                    Proved in court  Highlighted user friendly version with comments

                    Court decision   Original version without comments

The Judge says "The concept of paying compound interest may be repugnant. That this is what the loan contract provided seems to me to be abundantly clear" (Para 34)"letter from the CBA to Mr Iyer is a general letter referring to the use of compound interest." (Para 65).

The Judge observes that the loan document has mentioned total amount repayable in 25 years, including interest. This is true in National Australia Bank document but Westpac banking corporation document does not provide any such indications!.

But you all know that when the loan is taken the total amount repayable in 25 years is calculated based on, 'Interest rate' at the time loan was taken.

When the market interest rate changes the repayment amount changes and the total amount repayable changes, not by marginal amount, but it can go to a level that the loan remains totally unpaid even if all instalments are ritually paid, just due to interest rate increase alone.

So there is NO MEANING in the total amount repayable shown in loan document!

The Judge observes that compound interest is charged is 'abundantly clear' from the loan document. If that was so easy to understand from the loan document,

why then;

  1. Mr Tim Goss of westpac banking corporation, National customer service manager, couldnt say in 1 hour of telephone discussion with me?

  2. Ms Tommy, Manager of Commonwealth Bank of Australia, Cheltenham, Victoria branch couldnt answer if interest is compounded or it is simple?

  3. Why the Manager above Ms Tommy was able to confirm in writing that they charge only simple interest?

  4. Why Judge Merilyn Harbison, in my case against Westpac Banking corporation, observed that she doesnt want to go into compound or simple one way or the other?

  5. Why Mr Robert Strong, counsel for Westpac in the same case, observed that they dont charge compound interest and that my (Mr Iyer's) understanding of compound interest is 'unique one'?

  6. Why then VCAT has not placed my 2 cases against Westpac Banking corporation, in the legal database, even though I have been ordered and I paid penalty of $10,000 in first case and $ 12,700 in second?

Simple interest is a myth in education, not a reality. The system is deceptive!