A repayment and a reduction in the loan balance are different figures. Interest, fees and transaction timing can explain the gap. Start by reconciling the statement, then investigate any entry that does not match the contract or your payment records.
For credit covered by the National Credit Code, section 34 sets out statement information, including the period, opening and closing balances, payments, fees and relevant interest information. Product-specific qualifications apply.
Match the period and the account
Check the account identifier and the start and end dates. Find the prior closing balance and confirm it matches the new opening balance, allowing for any clearly explained correction.
Compare payments by the date credited to the loan account, not just the date money left your transaction account. A payment near the period boundary may appear on the next statement. Keep the bank confirmation if an expected credit cannot be found.
Build a balance bridge
Our checking worksheet starts with opening balance, adds new advances, interest and fees, then subtracts repayments and other credits. It should reach the closing balance.
Here is a hypothetical statement:
- Opening balance: $12,000.
- Interest charged in this period: $90.
- Account fee: $10.
- Repayment credited: $350.
- Closing balance: $12,000 + $90 + $10 - $350 = $11,750.
The $350 payment reduced this example's balance by $250 because $100 in charges was added. This is reconciliation arithmetic, not a calculation proving that $90 interest or a $10 fee is correct under a real contract.
Check a charge against its actual rule
For interest, locate the contract's calculation method, rate and charging frequency. If the balance or rate changed during the period, using the opening balance for the entire month may give the wrong result. Ask for the calculation details if a difference remains unexplained.
For fees, identify the contract description, triggering event and amount or calculation basis. A similar label in an app is not enough to establish that the right fee was applied. Our loan fees guide explains common car-loan charges.
Do not assume every loan requires a monthly statement
Section 33 has different maximum statement periods and exceptions. One exception concerns a rate fixed for the whole term without provision to vary it. A missing monthly statement therefore does not by itself establish a breach.
Ask the lender for current account information or a transaction history if you need to reconcile a loan that does not issue the statement you expected. A statement balance is also different from a dated payout figure; our early payout guide explains that separate request.
Keep an evidence trail for a correction
Record the disputed entry, statement date, contract provision and your calculation. Ask the lender to explain or correct it in writing. If unresolved, our finance complaints guide shows how to organise an IDR complaint and track the response. Keep the original statement and any corrected version so the change remains clear.
