Illegal Credit Cards

[WizardofOz]

I'm by no means an accountant, especially for a bank the size of BOA but was wondering something. More than likely, BOA has been studying this new product with all the charts, graphs, risk analysis, and PR releases to chop down a forest's worth of paper. If BOA thought they wouldn't make money, they wouldn't do it because after all they are a bank....and they love making money. Anyhow, if they were to issued these cards and the person defaulted, left to Mexico, used stolen ID, would BOA take it in the shorts or use it as a writeoff on their financial statements as a way to offset profits/losses in their other departments?

[TexKan]

Probably and the acountant that came up with the way to do this probably also has a nice new office as well - with a bigger window!! Still don't make it a right thing to do........... they will as others - do it just the same.

[Army_of_One]

I believe so. They may lose a couple of customers like I said before but with the illegals flowing into this country it's an untapped market. Banks are competitive and any way they can make money and keep their profit margin high (higher than big oil companies) they will, even at the expense of doing what we may perceive as a moral wrong by giving illegals credit cards. I think most business's weigh the cost of any decision and if it not going to be profitable they won't do it for the most part. Banks are here for one reason...to make money any way they can. (AND give back to the community in some cases....)

[TexKan]

You are such a gentle spirit!!!!...........

[Outofdodge]

Originally Posted by WizardofOz

I'm by no means an accountant, especially for a bank the size of BOA but was wondering something. More than likely, BOA has been studying this new product with all the charts, graphs, risk analysis, and PR releases to chop down a forest's worth of paper.

I am an accountant. This is a secured credit card program. The credit card limits are set based on the amount of cash on deposit. If one was to default, the bank might not collect the interest but the principle is secured by the deposit, much like getting a car repossessed for not paying the monthly payments.

Bank of America is the largest but just one of seventy plus financial instituitions that have been granted permission by the US Treasury Department to use the Mexican National Indentification card in lieu of a social security number to open a banking relationship. Since documented or legal aliens are going to have either a green card and valid SSN or a Mexican Passport with Visa, the Feds have essentially given certain banks permission to offer banking services to undocumented aliens. There are social benefits to having that group have banking relationships vis a vis getting ripped off at check stations and money order firms not to mention carrying money around and creating an inducement for someone to commit a robbery.

It pains me to say this but Army and Lurker have it right, there is a business opportunity and the leadership of BOA is grabbing it. The risks of losing a few people upset with this against the potential customer base would be worth it.

[wordsmythe]

What are the rates coing to be on these things?

25% at LEAST I hope

[TexKan]

Yeah you are right OOD - just how do they go about deciding which banks??? Is this a lobby perk??? what do ya think?

[WizardofOz]

Thank you for the information OOD. It is good to have someone with your knowledge about this.

I too would like to know the process of selecting banks authorized to have this program. I would also like to know if the other banking groups will cry foul and want their piece of the pie through their lobbying groups. I guess that along with the GPS devices, maps, and bottles of water given to the illegals as they cross the border, they can know give credit card brochures from BOA.

[Detector]

I guess that along with the GPS devices, maps, and bottles of water given to the illegals as they cross the border, they can know give credit card brochures from BOA.

Now thats funny. Sadly true, but funny.

[Army_of_One]

Originally Posted by Outofdodge

Bank of America is the largest but just one of seventy plus financial instituitions that have been granted permission by the US Treasury Department to use the Mexican National Indentification card in lieu of a social security number to open a banking relationship. the Feds have essentially given certain banks permission to offer banking services to undocumented aliens. .

Very good information. So this basically means the gov't that we all want to STOP illegal immigration is working behind the scenes making life better for them here.