Bank's credit cards for noncitizens raise ire

Bank of America's decision makes it easier for legal immigrants to build credit. But critics say it helps illegal migrants.

from the March 13, 2007 edition

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"Just like the terrorists who gave us 9/11, this is just another way for undocumented workers to hang around in America and appear to be legal and conduct business," says Ron Woodard, director of NC Listen, an immigration reform group based in Cary, N.C. "The banks care more about making a buck than about national security," he says.

Immigrant advocacy groups disagree with that assessment. The majority of possible credit-card users are legal residents, many of whom have not applied for a Social Security number, they say. Many have long struggled with predatory practices of "fringe financial service providers" which deter saving and increase crime, they add. "This is a welcome first step for immigrants who need access to credit and don't have it and want to fully integrate into the nation," says Ms. Ibarra.

But to some, Bank of America's argument is disingenuous. "The whole point is not to help legal residents build up credit, but to help those with no Social Security numbers buy stuff ... and that is illegals," says Mark Krikorian of the Center for Immigration Studies, which advocates stopping illegal immigration.

Mr. Krikorian faults the USA Patriot Act of 2001 for creating the situation that banks can now take advantage of.

That law allows financial institutions to accept official identification issued by foreign governments, which include the matricula consular card – an ID issued by Mexican consulates. The law also allows banks to accept Individual Tax Identification Numbers, which the IRS issues to noncitizens who live outside the US but have American bank accounts and pay taxes in the country.

Federal legislation was introduced in Congress last week that would close such loopholes.

The Photo Identification Security Act – sponsored by Rep. Marsha Blackburn of Tennessee – would no longer allow American financial institutions to issue credit cards to illegal immigrants. Under the act, opening a bank account would require either a foreign or US passport, a Citizenship and Immigration Services photo ID, or a Social Security card along with a state or federal ID.

Approving such a law would amount to an entire nation burying its head in the sand, says Jim Johnson, director of the Urban Investment Strategies Center at the University of North Carolina, Chapel Hill.

Some 600,000 Latinos in North Carolina generated $9.3 billion of income in that state in 2004 and have helped create 89,000 new jobs there, he says.

"Corporations are simply recognizing the impact of doing business with Hispanics," says Mr. Johnson. "America has an aging, native-born population that is going to need more and more workers to support them .... investing in them for the future is a no-brainer."

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