Most are not aware of (1) either the existence of difference in the method of calculating the interest on deposits as against the method applied to money lent and / or (2) the impact of such different method applied in calculating interest on deposits as against money lent.

This is the double standard that exists in banks secrecy of profits in the last 50 years or so. This is what I brought out in the court cases against Westpac banking corporation, National Australia Bank ltd and Commonwealth Bank of Australia. It is not only these banks that do this, but all banks as a ‘gang’ against the weak borrowers. 

The law didn’t come to protect neither myself nor the interest of these weak borrowing groups, but vehemently supported the ‘gangsters’.   

Due to compounding and varying the rate the borrower (i) defaults and/or becomes bankrupt and/or (ii) to owe more than what was originally borrowed, even after ritually repaying all the instalment amount.

        Deceit on borrowers:

Interest rate in the contract is totally misleading, compared to rate applied on the loan.

Some small business operators borrow money to do their business. Some may use rule of thumb method of quoting their price by keeping a margin of say 10% more than interest rate they pay when they borrow. Since the rate quoted is not the one that they end up paying, they lose on their margin of profits/incur loss and become bankrupt.

Features of Compound Interest: 

·  Longer term means higher rate actually applied.

·  Frequently compounding (monthly, quarterly, half yearly etc.) means higher rate actually applied.

·  Without lump sum additional payments, (besides regular repayments), will NEVER pay $1 off principal. So at the end, will owe MORE than what was borrowed.