Bank of America Casts Wider Net For Credit Cards

MIRIAM JORDAN and VALERIE BAUERLEIN have an interesting article in the Wall St Journal (Feb. 13 here) about a decision by the Bank of America, in the latest sign of the U.S. banking industry’s aggressive pursuit of the Hispanic market, to begin offering credit cards to customers without Social Security numbers — typically undocumented immigrants. In recent years, banks across the country have begun offering checking accounts and, in some cases, mortgages to the nation’s fast-growing ranks of undocumented immigrants, most of whom are Hispanic. But these immigrants generally haven’t been able to get major credit cards, making it hard for them to develop a credit history and expand their purchasing power.  The new Bank of America program is open to people who lack both a Social Security number and a credit history, as long as they have held a checking account with the bank for three months without an overdraft.

NPR ran two related stories: Bank Defends Credit Cards for Illegal Immigrants (here) and Should U.S. Businesses Market to Illegal Immigrants? (here).

Before we hear from the naysayers, there is no law prohibiting ordinary consumer transactions with undocumented immigrants.  Grocery stores, convenience stores, check cashing businesses, telephone companies, wire transfer services, etc. have long conducted business with undocumented immigrants.  A while back, banks, including Wells Fargo Bank, began to accept foreign identification (matriculos) to open checking accounts.   Some banks even allow undocumented immigrants to obtain home mortgages.

KJ