updated 16 September 2008 13.30hrs.
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READY RECKONER
[Compound Interest Rate to Simple Interest Rate]
RATE INCREASE When LOAN WILL NEVER BE PAID OFF !!!
VIEW Documents VIEW Jan 2008 COURT DECISION Confirming the Compounding Monthly
Breif features of this case:
1. The question before Justice Bowman on 18th June 2007 & 20 June 2007 was to decide if there is a case at all on our side, to schedule further arguments.
2. The Judge heard NAB's counsel for 25 minutes. Then heard me for 50 minutes on 18th June. On 20th June allowed me to speak for 40 minutes against CBA, on behalf of my (more at 'B 4' in 'view documents' page) "friend" Mr Praveen Rao, who claimed not knowing much in law, but immediately after 20th June, he told me that Justice Bowman would ‘club both cases’ and give his judgment. But it is a miracle/magic/Praveen's skills that Justice Bowman exactly did the same in 'black and white'!!!. Praveen's skills
3. On both days after my submissions, the Judge ‘reserved the judgment’. No further contacts or communication until 23rd January 2008. He decided not to schedule further hearings, on the only grounds, that loan contract shows 'total amount repayable over the term of loan’. Please read below…..
Simple solution is:
The government can remove the endorsement for Compound interest, from Regulation 33F of Consumer Credit Code Regulation of Queensland 1994.
The Government can pass a legislation in parliament (a) for mandatory disclosure of (i) the words compounding monthly (at the loan summary/offer page), and (ii) that the borrower will never be able to pay off even $1 of their principal, in spite of regularly repaying the instalment, when interest rate increases (b) If such disclosure has not been in the contract, the lender should default to simple interest.
But if one is part of the fleecing group (within one's own mind, resolved to support the fleece), then you can get lame excuses for not doing it.
Federal Treasurer, Wayne Swan, spoke about ‘punishing the banks’ by customers moving elsewhere. A young lock smith, in April 2008, asked me the question why Wayne Swan cannot pass legislation in parliament that the Lenders should not charge compound interest, or the least to compel all lenders that they have to disclose that they charge interest compounding monthly and its impact?
I have no answer to this. Obviously, if the elected representatives are the only group that can pass legislation to get relief from the above ‘daylight robbery’.
Alternatively why not Wayne Swan, remove Regulation 33F, Consumer Credit Code of Queensland 1994? Interestingly why should Regulation 33F, recognise compounding frequency in the interest rate.
Why not Uniform Consumer Credit code ( a Federal Legislation) spell out that the default interest method is Simple interest, unless clearly stated in the contract? (Interestingly like our bank loan document, even the legislation accidentally?? Omits the words compound or simple, when it talks about interest rate.
As one of the celebrities mentioned that he never cast his vote in any election as he does not want to be guilty of electing such 'representatives' and kept paying only the $ 50 penalty all the years.
Please discuss the details even with those that you may think won’t understand, but believe me; even those end up signing a loan agreement in their lives. So they have a right to know too!!!
I have placed a business plan and cash flow budget for this purpose in ‘View documents’ section of this site. (Cash budget and profit and loss budget show that you can lend at simple interest and still match the dividend rate paid by NAB in 2006). Such new business will swipe the market fully off the large banks and such new business will provide service to the community as well as be the largest player in the market.
1. People who have access to contacting some celebrities like, Hrithik Roshan, Rajni Kant or Sharukh Khan, or Imran Khan like service minded people that are wealthy, can use my business plan attached in this website and start a lending business in a smaller scale and would soon find themselves doing the best service to the globe.
2. All I request is, at the least, you can circulate the information in this website to all your contacts to create the awareness (regardless of if they have a loan or not, live in Australia or Elsewhere in the globe). People send chain letters with various believes. Here this matter is not a matter of just a belief, it is a total conspiracy and rip off that affect everyone anywhere in the world at some time in our lives. Why not we alert all by forwarding the emails. Not that it makes any changes to people who are shamelessly not bothered to do anything to correct the situation but only tried to ‘hush me up’, but at the least an awareness would exist among all.
3. Please discuss the details even with those that you may think wont understand. Those too, end up signing a loan agreement in their lives. So they have a right to know too!!!
4. Why not channel 9 (in first week of April 2008 ‘how to survive’) recommend an option of selling the home and renting. Is it because, this will trigger the bank to lose their compound interest and will make banks losing profits/fail. Why did they suggest the borrower to 'extend' the number of years to 35 years or 40 years of loan, this would still multiply much more that what I showed in my excels (as I did the program only for up to 30years).
5. Someone asked, ‘What if a group of people all default their instalment repayment for one month at a time and pay from the following month (as default of one month cannot lead to anyone losing their property or not result in huge amount of interest loss) and no offence committed. Since the lenders normally hedge their loans to other bigger lenders, so your default will cause a huge impact of repayment to the bigger lenders”. I have no comments about this.