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Banking Industry Offers Credit Cards to High-Risk Group, Again

In just another example of banks targeting high-risk groups, those with bad or no credit, Bank of America is discreetly offering credit cards to people without Social Security numbers, reports the Wall Street Journal today. Now, before my knee-jerk reaction, that this is a really dirty and exploitative moneymaking scheme, gets away from me, I think it's important to consider the positives.

Undocumented immigrants, the obvious target of the new offer (the majority of people in the U.S. who don’t have a SS number are illegal immigrants), deserve options for credit as well. It is harder to buy a house, car and really, anything big without credit, and as the WSJ points out, illegal immigrants have "typically relied on loan sharks and neighborhood finance shops for credit." So potentially, this could be a good advancement. Unfortunately, Bank of America’s lending scheme appears to be just another example of high-risk groups being taken advantage of.

Illegal immigrants have to pay an upfront fee to obtain Bank of America's Visa card and the interest rate on the card, surprise, surprise, is “unquestionably high,” according to a researcher for the Nilson report, a group that puts out newsletters on consumer payment systems. Salon blogger Andrew Leonard, notes, sarcastically, that anti-immigration activists should be shouting from the rooftops, because immigrants' money will no longer be flowing across the border in the form of remittances, but rather staying right here in the U.S. of A.

It's a tough time for banks. Historically they have raked in profits by simply buying other banks, but consolidation regulations are tightening and banks are forced to look for other lucrative avenues. It's really no wonder Bank of America would look to give credit to an untapped population whose financial stability is not guaranteed, one that probably has no idea that the average household that makes less than $35,000 has credit card debt of $4,000.

Higher standards, huh?

Comments

"Oops they did it again." Big business & Bush/Cheney White House forgot that the little ficticious "war on terror' bill of goods they sold to the American consumers...I mean American citizens. Similar to the failed Port Deal in 2006. The Bush White House & big business operate as greedy elites, flying above the ficticious propaganda they sell through their MSM fiefdoms.

Every so often they get caught in their own lie like a deer in the headlights of an approaching tracter trailer of American progressive/populist re awakaning. A big lie. 650,000 dead Iraqis, Millions of Iraqis displaced, and oh yes those over 3000 dead GIs. Or as Sebnator Obama slipped "wasted" or as John Kerry failed joke revealled.

American soldier awake from your sleep walking. Just say NO to Iraq war. American soldier say YES to the Constitution.

Every American soldier from the Joint Chief to the soldier on the front line should lower their weapons and refuse to fight in Iraq; start walking home if need be.

Moreover the Joint Chiefs should refuse the order to go to war against Iran.

If Cheney insists, I am sure that from the billions of dollars spent on armaments a side arm and a bullet could be spared.

The loss of a Vice President or the loss of thousands of fellow American lives, I am sure the Neocons would understand that selfish ideological calculation. Profit/loss statements. Monetary terms! They could definetely understand the rational - that the death of one individual is worth the savings in money & lives. Young american lives or a creepy greedy sleezy Vice President.

As apposed to their racist bigoted illogical genocidal thinking that murdering thousands is worth a barrels of oil for a fistfull of dollars.

Vice President step aside and go home. Let some love back into the world. There has been enough hate for the 21st century.

Give peace a chance.

Be well.

Posted by: Paul Malouf on 02/13/07 at 6:18 PM

Capital One just gave me a "secured" credit card whereby I give them a $75.00 deposit, and they give me a credit limit of $750.00. What was really diturbing that their letter of offer stated (paraphrased)"If you do not have $75.00 at this time, you can send us smaller amounts until we receive a total of $75.00".

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Banking Industry Offers Credit Cards to High-Risk Group, Again

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