When a bank makes a loan, it deposits new government money into the borrower's account. When a bank requests interest by debiting the borrower's account, it extends the loan and creates more debt the borrower must repay. As a loan extension, banks and other lenders should deposit money into the borrower's account. They don't, and this causes the double payment of interest. 

Banks' rationale is that interest is money that the loan earned and not an extension of the loan. That is untrue. It is a charge on the loan, and banks should not pretend it is an extension they do not have to pay.

However, the best solution is not to extend the loan with a debit of interest. Interest should be treated like any other fee, and when interest is paid, it should come off the balance owing. Interest is then treated like any other cost.

If you have a loan account with an entry debiting your account with interest, you will almost certainly find you are double-paying interest. Add up the amount of interest appearing on your account, and that is the extra you are paying. It is the same for most loans, whether they are bank or private.

The sad thing is that banks do not have to lose profits. They can make more loans and increase their interest rates because loans are cheaper to repay.

Please pass this petition to anyone interested in reducing the cost of their bank loans.