Without a hitch Bank of America started to offer credit cards for Spanish speaking illegal immigrants with no Social Security Cards. To obtain a card you need to open a checking account and not to have an overdraft for three months. Decision about granting a credit Bank of America makes after negotiations with the applicant's employer. In 2006 the bank was testing the program in five branches in Los-Angeles, and last year it was implemented in 51 bank branches in the district of Los-Angeles, where the number of illegal immigrants is too high.
This year the bank is planning to expand this program on all the rest of states. "We want to let people, who don't have any credit history, apply for a credit card", - tells Lance Weaver, the head of international card department of Bank of America.
To obtain a $500 credit line, the Mexican immigrant Antonio Sanchez put $99 on his Bank of America account. If he doesn't exceed the credit limit and pays the interest on time, in three to six months he will get his $99 back and increase the credit limit. Sanchez has moved to US about ten years ago, and he neither has a credit history nor a Social Security Number. His only asset is Ford Thunderbird of 1996 model year, which he drives to work in two different restaurants in remote districts of Los-Angeles every day. Sanchez makes around $25,000 annually and supports three kids.
"I always wanted to build my credit history to get a house, but never had an opportunity", - he says, - "and when they told me about this card, I couldn't miss such a chance. You can't succeed without credit history in this country." Sanchez has to pay 21,24% APR. This is far from the best credit card. According to Nilson Report, in USA the average APR for such loans is about 18,1%. "If you are offered such terms, they definitely apply you to the high risk category," - says David Robertson, the author of Nelson Report.
The Bank of America doesn't have so many opportunities for development on US market. In the past it was growing due to the takeovers and is now represented in 31 states. By volume of deposits Bank of America occupies the first place in USA and recently moved close to 10% of this market - the highest possible share of the market. According to estimate, 28 million Spanish speaking citizens live in Bank of America coverage area and most of them are not served by banks. "If we are not developing on this market, we will stop developing at all," - says Liam McGee, the head of retail and small business department.
Bank of America doesn't advertise a new service. The bank clerks ask Spanish speaking consumers to tell their families and friends, who wish to establish credit, about it. "These people come here searching for better life, and they deserve to be given a chance to reach it," - says the chief executive of card operations in Latin America Brian Tut.
The law doesn't forbid the banks to serve illegal immigrants. The law only demands thorough identity check, but not the check for legality of stay in USA.
Critics blame Bank of America for serving customers, who break the American immigration law.
