truthteller1571

The President's Advisory Council on Financial Literacy (PACFL) has ignored the untrue (deception) in the Truth in Lending Act (TILA). When the TILA was passed in 1968 there were no ubiquitous machines that would calculate compounding, which is required to calculate the mathematically-true, compounded ("^") EFFECTIVE Annual Percentage Rate (EAPR). Instead the NOMINAL, multiplied, APR (NAPR)was used, calculated as the rate for a payment period multipled by the number of payment. In the Viewpoint column of the Febraury issue of Consumer's Reports the editor told of a school principal who had borrowed $400 for 16 days, on which the interest was $120 ... and the fact that the APR (NAPR) was 684% (120/400)*(365/16). The mathematically-true, EFFECTIVE APR (EAPR) is 39,650%((1+(120/400))^(365/16))-1. The TILA allows a tolerance of accuracy of 1/8th% (0.125%) on that closed-end loan. The true APR, EAPR, is not just over 1 of those 0.125%, it is 311,728 of those 0.125% over the untrue NAPR (39,650%-684%)/0.125%. The PACFL has ignore my 5 comments on the EAPR on 5 occassions, even though 4 of the 15 members have MBA's