San Diego resident Carmen Garcia hopes Bank of America's offer of credit cards to people without social security cards spreads nationwide.
Garcia : Bueno porque muchos buesas es porque no dinero, targeta.
Credit to buy a home or car not for easy cash, Garcia says. That's why even though B of A's new program, if expanded, is geared for people like her, she's in no hurry to apply because she doesn't have steady work.
Garcia : Si porque, asi sobe inerest es la cosas.
That kind of caution among undocumented immigrants is well-placed, says Jim Bliesner of the San Diego City County Reinvestment Task Force.
Bliesner : I think B of A has a responsibility to provide financial education to immigrants on an ongoing basis as a condition of the credit. People should be taught how to use credit responsibly if they get a credit card.
Without that education, the plastic could be disastrous. B of A is charging a 21 percent interest rate on the cards, compared to 18 percent for other customers, though there is a $500 credit limit.
B of A executives declined our request for an interview. But in an e-mail, a company spokeswoman stated that the pilot project is being marketed in Spanish and English at 51 banks in LA County -- for now.
Because banks are constantly on the lookout for new customers, industry experts say efforts to exploit the massive and expanding Hispanic market will only be stepped up.
Bob Adkins, president of San Diego's Neighborhood National Bank : By 2008, the spending power of the Hispanic population on an annual basis will be over 900 billion dollars. So obviously there's a market, and I do see many industries -- including financial institution industries -- going after that market.
But Adkins doesn't think that banks will follow B of A's lead in tapping the Hispanic market by offering credit cards to undocumented people.
Adkins : There's too many issues relating to it: whether it's right, whether it's legal, how it impacts our U.S. Patriot Act laws. Rules and regulations -- I think until a lot of those issues are resolved, I just don't see a massive movement in that direction.
Bank of America officials say they're in compliance with all U.S. federal laws, including anti-terrorism rules like the Patriot Act. But that could change if San Diego Congressman Brian Bilbray has his way. He wants to make Bank of America's new credit card program to undocumented immigrants illegal.
Bilbray : What's unfair, that can really make a lot of money.
To qualify, applicants need two forms of I.D.: an American or foreign government I.D. card such as a Matrícula Consular card, or driver's license and proof of federal taxpayer status.
Bilbray and his colleagues are working on legislation that would require credit card applicants to provide a secured identification like a passport.
Bilbray : They're trying to say: ‘circumvent the law.’
But even the federal government is providing financial services to undocumented workers. The fed has expanded a program that allows undocumented immigrants to send money to Mexico -- for a small fee.
