Thread: Credit card lands bank in hot water

Updated 6:44 AM on Sunday, March 4, 2007

Credit card lands bank in hot water

By IEVA M. AUGSTUMS
Associated Press

CHARLOTTE, N.C. - When news broke that Bank of America Corp. was testing a new credit card available to customers who may be undocumented immigrants, the reaction was predictably harsh.

Outspoken critics of undocumented immigration called for a boycott and said the bank could be supporting terrorists and drug traffickers. Some outraged customers closed accounts and sent back their cards, chopped into little pieces. The bank's chief executive, Ken Lewis, admitted that "finding oneself in the middle of a heated national debate is never pleasant."

But Bank of America isn't the first to offer such a card: Citigroup Inc. said it has done so for years, and Wells Fargo & Co. says it's thinking about it. The cards are merely the latest progression for an industry that has spent millions to attract customers in the country's growing Latino community - and among the estimated 12 million undocumented immigrants living in the United States.

They also reflect a fact faced by every retail business in the United States. While they can't legally employ undocumented workers, there are few, if any, restrictions on welcoming them as customers.

"As a business owner, you sell to whomever comes into your store. You sell to whomever buys from you online. It's easy, normally," said Steven Camarota, director of research at the Center for Immigration Studies in Washington. "Just in some cases where specific identification is needed, like in financial services, it's more complicated."

But getting less so. Last month, Bank of America said it had started a pilot program in the Los Angeles area late last year that didn't require a Social Security number to sign up for a credit card. The Charlotte-based bank insists the card isn't specifically designed to attract undocumented immigrants, and says that so far, it has not.

The bank hasn't decided whether it will offer the card elsewhere, but it would probably be popular with a population that generally lacks access to something as common in most American wallets as the dollar bill and a driver's license.

"It's a no brainer. It's a very large market," said Jim Johnson, director of the Urban Investment Strategies Center at the University of North Carolina at Chapel Hill. "The bank is just the latest example of a major corporation recognizing the impact of doing business with Hispanics."

In 2005, the nation's 6.6 million undocumented immigrant families had an average annual income of $29,500 and accounted for nearly $200 billion in purchasing power, a figure that's only expected to grow, said Pew Hispanic Center demographer Jeff Passel.

"They are impacting the economy," Passel said. "The unauthorized are explicitly coming for an economic basis."

While credit card use among the nation's 42 million Hispanics is on the rise, a substantial number of Latino households don't have access to credit, according a survey conducted by the National Council of La Raza, which found that 80 percent of American households use credit cards compared with only 56 percent of Hispanic households.

For years, U.S. banks have made attracting immigrants a major focus of their business strategy, working to sell services that include everything from traditional checking accounts to wire transfers used to send money to relatives back home.

Customers don't typically need a Social Security number to open a standard banking account. Instead, they can identify themselves by using an ID card provided by the Mexican Consulate to its citizens, known as a matricula consular, or an Individual Taxpayer Identification Number issued by the Internal Revenue Service.

At Bank of America, the pilot program in Los Angeles allows customers to use such forms of identification to also sign up for a credit card. The card is similar to secured cards offered to those with poor credit: It requires customers to have an account with the bank that's been in good standing for at least three months and comes with a reimbursable up-front fee of $99.

"This initiative lets customers build a solid credit history with a leading bank," Bank of America spokeswoman Betsy Weinberger said.

Still, Camarota said most Americans don't think businesses should go out of their way to cater to undocumented immigrants. "Some say it's bad corporate citizenship," he said.

Critics of undocumented immigration have said providing credit to undocumented immigrants further embeds the population into American society. Many worry that without a Social Security number, the bank can't be sure the card's customers won't use the credit for criminal activity, such as terrorism or drug trafficking.

"We just see this as another step to put our country at risk so they can make a few extra dollars," said Rod Woodard, director of NC Listen, an immigration reform organization based in Cary, N.C.

The attention has rattled America's largest retail bank. Lewis responded to the controversy in a column in The Wall Street Journal, writing the bank is complying with the provisions of the USA Patriot Act, which set up the guidelines that allows the bank to accept official identification sources issued by foreign governments - including the matricula consular.

"And I observe no shortage of irony in the efforts of those whose first concern is national security, but who seek to undermine a regulatory structure that was designed in large part to thwart terrorism," Lewis wrote. He said only 16 percent of customers to sign up for the card so far lack a Social Security number.

"We believe we have an obligation to serve all those in our country who are legally eligible to receive services," Lewis wrote. "To do less would be discriminatory and unfair."

http://www.theeagle.com/stories/030407/ ... 304017.php

It just shows once again how the problem originates within our very own borders!

Way to go banks!

Our banks are only looking at profits. they like many companies don't care about america.

Originally Posted by Beckyal

Our banks are only looking at profits. they like many companies don't care about america.

Very true Becky. These guys only see dollar signs and numbers.

Ok, remember I reported that just before all this started, they sent me a card? I hadn't gotten around to cancelling it yet (because of doo-doo storms at work) and last night I got a call from one of their customer agents to ask if I was happy with my shiny new card. Instead of unloading on a peon, I decided to get what information I could.

He was completely prepared for my questions and comments.

He said that around 80% of BoA cards go to people like me with SSNs and around 20% to people with Tax ID #s and other identification, such as 'provided by a foreign government' (read matricula here). I thought 20% was shockingly high.

He claimed that it wasn't a credit card, but a secured credit card because they deal in cash and this will help them.

I pointed out that around 70% of Americans don't want illegals helped, they want them deported.

More later.

I read somewhere (I think on here) that if the criminal aliens don't pay the bill, this whole thing is set up so that the government will cover the cost...that, of course, means us hard-working, taxpaying Americans who are barely making it now. So, if I'm remembering the article correctly, in addition to everything else we already pay for for these people who have no right to even be here, we're going to pay for their credit cards if they don't. And with no SS# needed, they can't be traced; I can see a lot more of our money going to the criminal aliens.