Noan Chomsky vs. William F. Buckley

Washington Mutual charges credit card interest before the due date

Yesterday, I called Washington Mutual to cancel my credit card. I wanted to pay the $16.98 owed on the card by June 17 and then close the account. Well, it's not that easy.

The rep said I had to pay $20.00 because I may owe more than my account shows and if $20 is too much, they will reimburse me with a check. I asked her why I had to pay more than the amount on my last bill when I had not used the card since my last bill. Without getting a straight answer, I pressed her and learned that the company charges interest by day and that the contract I signed consented to interest starting after the due date. "Well it's not after the due date, so why should I have to pay interest." She said I "may" have to pay interest as it can accrue before the due date of the bill! This really lit me up. Do your credit cards charge interest before the due date?

What's more, if I paid on the phone, she'd couldn't close the account until the payment posted. Then she told me it would cost over $14 to pay on the phone! So I had to create a username and password to access my account online. After paying it, I have to call back after the payment posts to have the account closed. After I set up the password, the password would not work. I got frustrated and quit, hoping it would work after a few hours to let it filter through the system. I am having to go through 3-4 steps to pay and close my account.

If I just pay the $16.98 and WaMu charges interest on that, then I could owe $2 or so on my next bill. Then if I pay that $2, there will already have been interest charged on that balance, and I'd owe $0.23 or so. This would go on ad infinitum until I acquiesced and paid more than I owe. At that point, WaMu has my money and will reimburse me in 3 months! If I don't like that, I can call after I cancel the card and ask for an expedited reimbursement.

I know credit card companies do all kinds of stuff like this, but this is the first time I have heard of charging interest before the due date. That forces you to over pay your balance and then rely upon the company to issue you a check. You also have to remember they were supposed to issue a check and follow up with them 3 months later if they don't send it. Such bullshit!

What I have been doing is just going online a couple of times a month and paying off my balance. That way, interest does not accrue during the month before my due date. i also have one card I keep long term with a high credit line (to improve my credit) and I switch from card to card as I get 0% offers in the mail. Usually I can get a 0% card for 12 months. If I forget to pay a bill on time, I can usually call Chase and ask them to wave the late fee. They will do this twice.

Keep extra vigilant of the credit card companies, and don't use Washington Mutual.

Approved Labor and Environmental Rights for New Trade Deals

After my previous post today, I serendipitously found this news that the White House and Democrats have reached agreements regarding future trade deals. These new agreements will be attached to future deals to protect labor rights and environmental right, thus making the approval by Congress easier. The following is from today's New York Times:

By STEVEN R. WEISMAN

Published: May 11, 2007

WASHINGTON, May 10 — The Bush administration reached agreement on Thursday with the House speaker, Nancy Pelosi, and other Democrats to attach environmental and worker protections in several pending trade accords, clearing the way for early passage of some pacts and improving prospects for others.

The unusual agreement, which came after weeks of negotiations, would guarantee workers the right to organize, ban child labor and prohibit forced labor in trading-partner countries. It would also require trading partners to enforce environmental laws already on their books and comply with several international environmental agreements.

While the understanding was a victory for Democrats, it also represented a shrewd compromise by the White House. The agreement is the first major bipartisan economic deal to emerge since Democrats took control of Congress in January. It has immediate importance for four countries — Colombia, Panama, Peru and South Korea — that are seeking to enter into trade pacts with the United States.

But officials in Washington predicted that the agreement’s effect would go beyond those countries and could be a template for all trade deals, including a possible worldwide accord.

Administration officials are hoping that the agreement will cause many Democrats to support future trade deals. They hope that enough Democrats will join with Republicans, who generally support such measures, to make passage of the agreements probable, if only narrowly. read more