Firing Squad

This was the opening sentence of an article by Andy Webb-Vidal in the FT today,

“Bankers traditionally face firing squads in times of revolution.”

Coincidentally, I received another offer to open a new credit card account by none other than a bank, Washington Mutual. Now I opened this offer since I know this bank. What I found is enough to make me want to stage a revolution.

For any of you clueless wonders of the American public who thinks your government is full of a bunch of “do gooders” as opposed to “evil doers”, you need not read on. For the rest of you, you may be familiar with the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005’’. Note in this title the portion called “Consumer Protection Act”. Well let me tell you, that is a distinct testament to our spineless, impotent legislative branch watering down a title to make citizens “consumers” think this 195 page act has something to do with protecting them. Nothing can be further from the truth. The only “protection” enhanced by this act is to set aside some rules about the accidental dumping of personal data in the public domain and some watered down requirement they send some bull shit pamphlet disclosing how the credit card companies are going to fuck the consumer by sharing their information with anyone and everyone who is willing and able to pay for it.

Anyway, I got my pamphlet late in 2005 telling me I had given up my rights to sue the credit card companies, that I could be charged any damn fee they want to charge for whatever damn thing they feel compelled to charge me for and that I could not be screwed many more times than previously possible by the credit card company.

I have been surprised by the boldness of the credit card companies offers now. This is the Washington Mutual “offer” for credit.

Interest: 9.99-19.99%

Now what exactly does this mean? Before the Bankruptcy law the interest rate was set. There was a real rate and a real index if variable. (Most were not.) However, terms are now spelled out in a way that allow credit card issuers to bull shit you and be vague as possible about what they are offering.

This is what they say about the interest rate:

“...will depend on Washington Mutual's evaluation of your application and credit history”

What BS! They would not be sending this shit to you if they did not know your credit history!!!

Other APR’s: Cash Advance 23.99%

Default APR: Prime rate plus 23.74%, currently 31.74% !

I love this one. Somewhere there has been a complete destruction of any kind of Usury Laws in the US. I am waiting for the return of “debtors prison”. If you don’t know what this is you really should look it up and learn NOW because this is what we are returning to. Anyway, that is 31.74%! What bank on the planet needs to earn 31.74% on a damn loan when the inflation is currently running about 6% (including energy and food, 2 things our government conveniently leaves out when advertising the inflation rate in the country, another evil and deceiving thing your evil doer government does) and the cost of money in the average savings account in the US is under 2% (not including money market accounts).

I love this: For every purchase outside of US border you will pay them 1% of the transaction. It’s back to travelers checks for me. They can be had for no fee now that people don’t need them.

What I really love about the Default APR is the myriad number of ways the bank can impose this fee. See this text from their “offer”.

Each time you default on this or any Washington Mutual credit card account because you fail to make at least the minimum payment when due, exceed your credit line, make a payment to us that is not honored by your bank, or are reported as delinquent on an account with any other creditor, we may increase the APRs on your account up to a maximum of the Default APR.

Yes, that is any time you default on any WM credit card but also if you are reported “delinquent on an account with ANY OTHER creditor”. Now isn’t that a gas? Tell me these people don’t know your credit history before they send you one of these offers.

Don’t forget, the enticement to transfer that balance from another credit card will cost you 3% of the transfer or $75 maximum. So if you are transferring $7500.00 you are paying 1% again to transfer the balance. Anything up to $2500 is costing you 3% off the top so better figure out what you are really saving if you are getting some interest free months to pay off that debt because you may find you are not saving what you thought.

We live in a capitalist economy where our government has confused the separation of government and economy. There is no longer a separation in the US. We don’t really have Democrat or Republican parties, we have a capitalist party government. It is a one party government not unlike a communist party government and there are no longer any choices to what kind of governance you have. If you are not a capitalist in the US, especially a right wing capitalist under Bush, you are not fit to work in his government nor contract with his government, nor live with the fear you will be followed and harassed by his government.

What does this sound like to you?

Finally, the last paragraph of Andy Webb-Vidal’s article sums up the lack of controls on anything companies (super citizens) can do in the US, “In a socialist economy you assign resources as a result of the will of who governs, but in a capitalist economy resources are assigned as a result of risk analysis.” Well, in the case of American capitalists, you assess risk then multiply by three then get the government to back you up while you screw the citizens with the judicial branch behind you.


Just a final note:

Last year, penalty fees alone (issued by credit card issuers, banks) generated $12 billion in revenue. "Banks [are] raising interest rates, adding new fees, making the due date for your payment a holiday or a Sunday on the hopes that maybe you'll trip up and get a payment in late," said Mr. McKinley.

So not only do you multiply by 3 but you add in a moving target!