How quickly the mighty good fall.

Note. This has nothing to do with illegal immigration. This is strictly about finance.

B of A is now issuing credit cards to people without a Social Security number or proper identification.

Their statement is that the hispanic market (illegal immigrants) is one that they must grow in or they will not grow as an institution.

Here’s where my problems start. First, like it or not, there are laws, and people who break those laws should not be given an incentive to do so. Elliot Ness (the guy who captured Al Capone) was once asked what he would do when they repealed Prohibition. His response was that he would take a drink. When it ceases to be illegal to sneak into this country, then give people who do so whatever services they can legitimatly get.

Second, this is obviously a predatory practice. They are taking advantage of people with few alternatives. The interest rates they will charge on these credit cards is well over 20%. Most of the people who take advantage of this program can hardly afford that much interest on a credit card. Most of us who don’t have to work “under the table” can’t afford it either, but that’s another issue. B of A simply doesn’t care. They will collect whatever they can from whoever they can, regardless of the individual’s ability to repay.

Third, and where it really affects the rest of us, B of A knows full well that most of these people will default on their credit cards. In order to make this more profitable, you and I will have to pay higher fees, get lower interest on savings, and pay higher loan rates. If you don’t bank at B of A, and you think you are not going to be affected, think again. Think of where your paycheck comes from. Think of who your grocery store banks with. Think of the many companies you do business with that bank with B of A. None of them want to lose money either. Who do you think they will pass their fees to??

So, how do we avoid this fate? First, if you do bank with B of A, close your account(s), pay off your loans, and sever any other ties that you can. Second, start letting them know how you feel about this practice. Let them know that what they are doing is wrong, and that they are bad people for doing it.