Thread: Gaston spurns bank deal over card (BofA)

http://www.charlotte.com/112/story/85073.html

Gaston spurns bank deal over card
County board unhappy illegal immigrants can obtain credit from BofA

A controversial credit card program has led Gaston County leaders to reject Bank of America as the county's bank.

Gaston commissioners on Thursday declined to award a four-year contract for banking services to the Charlotte bank -- a decision that could cost the county about $120,000.

Commissioners are shunning the bank because it offers a credit card that doesn't require a Social Security number to obtain and could be used by illegal immigrants.

The new card, which is being tested in Los Angeles, complies with U.S. laws and, according to the bank, is intended to introduce customers to banking and help build a credit history.

Bank of America officials have said that more than 80 percent of customers in the program have Social Security numbers, but officials acknowledge it could be used by illegal immigrants.

That aspect alarmed Gaston commissioners, who didn't want to support a company that supports illegal immigrants, said Mickey Price, the board's chairman and a pharmacy supervisor for CVS.

"Nobody, to my knowledge, wants to go with them," he said.

The decision comes after Gaston commissioners in November directed county officials to cut funding for programs and services used by illegal immigrants.

In rejecting Bank of America, the all-Republican board of commissioners told the county's finance director to investigate Wachovia, which had the next-best offer for banking services, to make sure the bank doesn't have a similar credit card program.

"We almost went with Wachovia last night," Price said.

Charlotte-based Wachovia doesn't have a similar credit card program. But, like Bank of America and many banks, it accepts IDs issued by Mexican consulates from customers who don't have Social Security numbers when they're opening checking and other accounts.

With about 200,000 residents, Gaston County is the second-largest N.C. county in the Charlotte area, according to 2006 Census data.

Thursday's decision was the latest criticism of Bank of America's credit card program, which has been entangled in a debate over U.S. immigration policy since it was revealed in February.

A Raleigh-based group that pushes for tighter borders launched a boycott, TV talk shows railed against the card and U.S. Rep. Sue Myrick, a Charlotte Republican, vowed to close her Bank of America accounts. Some customers have closed accounts, mailing the bank their cut-up cards.

The bank's CEO, Ken Lewis, has said some customers have closed accounts to protest the card but has downplayed the impact on the bottom line.

Bill Bradley, Gaston's finance director, said he didn't consider the illegal immigration issue in recommending a banking services contract -- something commissioners approve every few years. In 2006, he said, the average daily balance for the county's account was $10 million.

Gaston's banking services are now handled by Fidelity Bank, Bradley said, and the county received eight proposals for the next contract, which would run from May 1 through July 2011. Of those bids, he said, Bank of America came out on top based solely on numbers.

"They could provide all the services requested," he said, "and had the best proposal for the county."

The Wachovia proposal, by comparison, would yield about $31,000 less in interest each year, costing the county more than $120,000 over four years.

That wasn't enough of a loss to offset Gaston commissioners' opposition to Bank of America's credit card program, Price said. Bank of America, he said, "is definitely out because the next bid is not that big a difference."

Commissioners are scheduled to revisit the contract April 26. Bank officials said little after Thursday's decision.

"We look forward to meeting with the Gaston County officials," bank spokeswoman Betsy Weinberger said Friday.

Price, however, said commissioners wanted to make a statement by declining to do business with Bank of America.

"The ship has sailed," he said, "unless they were to do away with their card and come out against illegal immigration."

Snapshot of Card

Bank of America is testing a credit card in Los Angeles that doesn't require a Social Security number. Applicants must:

• Have a checking account in good standing for three months. However, a Social Security number, Individual Taxpayer Identification Number or other proof of ID is required for checking accounts;

• Pay an upfront fee and a higher-than-average interest rate that can exceed 21 percent. The fee is refundable with good payment history.

OMG. Wachovia's accepting the matricula card as well. Only difference is they don't give credit cards to illegals.

There ARE American banks in Gaston commissioners.

Commissioners' emails:

Jbrown19@carolina.rr.com
KINGSPINNACLE@aol.com
pfloyd@co.gaston.nc.us
afraley@carolina.rr.com
tckcom@aol.com
mprice@co.gaston.nc.us
jtorbett@co.gaston.nc.us