| Subject: | Re: [socialcredit] Jak Interest Free | | Date: | Sunday, May 29, 2005 19:17:35 (+0200) | | From: | Per Almgren <info @........se>
|
At 18:01 2005-05-29, you wrote:
>Welcome to our forum. We had extensive discussions
>with Per Almgren regarding JAK on this list several
>months ago. I'll research the archives and supply
>references so you might review them.
>
>In the United States we have a law called "truth in
>lending," which requires that most consumer credit
>contracts be stated in terms of the effective interest
>rate, or "APR," enabling consumers to compare the cost
>of one contract with another. The concept is what is
>called "imputable" interest.
There is a similar law in Sweden, also requiering the stating of the
effective interest rate, but this type of measure is not so meaningful for
the type of savings-loans that JAK offer since when calculating the
effective interest rate, you are very likely to get three different
answers, all of them of course mathematically correct. The
consumerprotecting agencies in Sweden has accepted the way JAK now uses for
calculating that rate. Personally I am of another opinion.
>JAK is "interest free" in exactly the same sense that
>the Guernsey notes were "interest free," in that the
>notes were stated in terms of redeemable face value
>without an explicitly stated rate of interest. But
>when tendered short of the redemption date you will
>never receive value for the securities in that amount,
>but something less - representing the "discounted" or
>"present" value in terms of current purchasing power.
What has the purchasing power to do with the effective interest rate? The
effective interest rate is a pure mathematical value, calculated from all
the in- and outpayments to the project during the time it runs.
>
>The difference between present value and value
>received at redemption represents, effectively,
>interest collected at redemption by the holder of the
>securities, paid by their maker.
How do you define redemption date for a savings-loan system? I am not
understanding what you want to express.
>JAK is a gross fraud by American standards inasmuch as
>it effectively collects interest from its customers
>that is several times the interest charged by
>conventional banks, yet deceptively touts itself as
>being "interest free."
The fees charged for loans granted now is 1.3 % of the initial loan amount
and this rate are fixed for the whole repayment period as far as I know.
You get no interest on the saved amount.
If you make an average out of it, you will be charged slightly less than
2.6 % of the average debt. I myself think that it should be possible to
have a lower fee rate, especially on longtime loans, but I have no
influence on such things today.
Per Almgren
>-
>
>
>--- Patrick Charles <tafari_1999@yahoo.com> wrote:
> > Dear William
> >
> > I thought Jak bank was interest free. You mentioned
> > the following from your postings:
> > "I also take note that you
> > represent a bank (JAK) that charges an effective
> > rate
> > of interest that is several times what a
> > conventional
> > bank charges".
> >
> > I am not familiar with the operations of Jak, could
> > you explain in more detail?
> >
> > Is Jak banking operation more expensive than
> > conventional banks?
> >
> > Regards
> >
> >
>
>
>
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