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Credit card outreach to immigrants criticized

By GETAHN WARD
Staff Writer
and PAM SHERBORNE
For The Tennessean


A Bank of America pilot program that offers credit cards to people without Social Security numbers has angered Nashville-area customers and even some potential ones.

Last week, Nashville resident Lee Roberts closed three accounts with the bank. And now commissioners of Oak Hill, a satellite city in Davidson County, are reconsidering whether to put their operating funds and investments in accounts with Bank of America. They could vote March 15 to put their money elsewhere.




Both moves are part of a backlash led by critics who say that the bank is helping illegal immigrants stay in the country by opening accounts for some customers who don't have Social Security numbers.

Bank of America says it has a pilot program in the Los Angeles area aimed at helping existing customers who have little or no credit history build their banking relationships.

Some Nashville-area customers without Social Security numbers are among customers doing business with Bank of America.

Laura Yescas, a Nashville resident for a decade, said she was able to obtain a Bank of America secured credit card using an Internal Revenue Service-issued taxpayer identification number.

"It's really good because that helps you start building your credit," said Yescas, who has had a checking account at Bank of America since she got her first job at a fast-food restaurant the age of 16, about six years ago.

Cards have high rate

Under the Bank of America program, people who have had accounts three months or more without a bounced check are eligible for credit cards. The cards carry an interest rate of about 21 percent and require security deposits between $99 and $500.

In recent years, banks have been expanding their outreach to immigrant customers.

Many banks nationwide accept identification cards issued by foreign governments to open accounts. Financial institutions including Wells Fargo, Bank of Bartlett near Memphis and Nashville's Southeast Financial Federal Credit Union also have accepted individual taxpayer identification numbers, issued by the IRS, for mortgage loans.

"I know that it's a conflicting political issue with people, but we have made hundreds of mortgages but not one of them have ever defaulted with us," said John Simmonds, president of Southeast.

The backlash against Bank of America has local Hispanic community activists concerned. Some are afraid that banks might slow down the expansion of products for immigrants.

"We're going to take five steps back," said Jose Gonzalez, executive director with Conexion Americas, a group that helps Hispanic immigrants.

Last week, Oak Hill commissioners put on hold implementation of a transfer of that city's general accounts to Bank of America until they can obtain more information on the impact of the bank's policy. The checking account with operations money is normally between $250,000 and $300,000, while the investment portfolio is $5 million to $6 million, said Ray Throckmorton, an Oak Hill commissioner and a former mayor.

"I was very concerned with Bank of America giving credit to those people who have come into this country illegally," Throckmorton said. "I think it is counter-productive and endangering to all of us. I've got a real problem with a company that rewards law breakers."