Bank of America is now offering Credit Cards to persons unable to provide a valid Social Security Number.

A large portion of the population that do not hold SSN’s are illegal immigrants. These illegal immigrants are now able (by holding a checking account for 3 months without an overdraft) to open credit card accounts that were previously unattainable. There is so much wrong with this I am going to bust out the numbered list…

1. Its against federal law to hire illegal immigrants. It should therefore be against the law to offer illegal immigrants the institutional perks of this countries financial system. Technically they are criminals - they entered this country without following the proper channels and procedures that thousands of others DO follow they by pass the established system and thus cost the american goverment millions of dollars.It seems quite clear that Bank of America is aiding criminals with this new “product”. Whether you believe in the immigration laws or not, they are on the books and the people who break them should not be able to enjoy the advantages of Americas financial system.
2. This is predatory lending at its worst. Target a group of people who traditionally have very little education on responsible personal finance, that have no other options, are often in financial hardship and offer them a credit card with staggeringly high interest rates (often over 21%). The marketing materials used for this new program outline a course from checking account to credit card to car to house with imagery that is clearly intended to capitalize on the hopeful dreams of these immigrants.
3. This hurts other BOA customers. Who do you think will pay the fees and costs for the defaults that arise from these cards? If some many Americans who legitimately have credit cards default what makes BOA think that these numbers won’t be present in this new “targeted market” even if not in greater degree? Then, without SSN numbers and Credit history’s that could be tarnished what’s the real recourse for individuals from just walking away from these charges?
4. What type of situation does this create if we do actually get an adiministration that cracks down on illegal immigration? Will they subpoena the records for the customers of this new product? Will we then have to decide if these records are private information or that for the pursuit of justice is worth their disclosure? I know I wouldn’t want to be the one with such a decision hanging over my head.

Bank of America has pretty much maxed out their growth potential through the model of acquisitions and mergers and is therefore relaying heavily on the “new account” growth method. I just think they have crossed the ethical line in the hunt for their next high interest rate victims.