The Wall Street Journal reports that Bank of America made a decision to offer credit cards to illegals without social security numbers. I'm not an economist, but in my opinion BOA took another step in the apparent downward spiraling out of control loan shark like activities of this company. Their new targets represent the most vulnerable among us. Smart business people know to stay away from the credit card scam. Those with lower incomes, however, become mesmerized by the enticing easy cash scheme a credit card presents. Used to, high risk individuals found it difficult to get a loan. WWII vets returning from war suffered countless credit rejections because of their job instability. Although sometimes unfair, this strict policy guarded both consumer and lender. The WSJ explains one potential card owner's glee this way:
Typical of the new card's customers is Antonio Sanchez, a Mexican immigrant whose only major asset is a white 1996 Ford Thunderbird, which he drives to the two restaurants where he works each day on opposite sides of Los Angeles. Mr. Sanchez, who says he sneaked across the border a decade ago, has been a customer of Bank of America's East Hollywood branch for nine years. He has no borrowing history and no Social Security number.
To obtain a Bank of America Visa card with a $500 line of credit, Mr. Sanchez had to put down $99. If he stays within his $500 limit and pays his balances in a timely fashion, he will receive his $99 security payment back in three to six months, and his credit limit might be increased.
"I always wanted to start building credit to buy a home, but I couldn't," says Mr. Sanchez, a father of three, who earns about $25,000 a year from his two jobs. "When a seƱorita at the bank told me about this card, I couldn't miss the opportunity to get it. You need credit to succeed in this country."
If not careful Antonio may soon embark on the most gut wrenching journey of his life. As a minister I hear this tragic story all too often. Antonio receives his BOA credit card. He uses it faithfully, keeping a balance, and making regular payments. Soon BOA sends him a letter that says something like, "Congratulations Mr. Sanchez. Because of your excellent credit history we want to reward you by increasing your credit limit to $1000. Start using your card today for a new purchase, that vacation you always dreamed of, or to pay off some bills. Go ahead. You deserve it." An ecstatic Antonio runs into the kitchen and relays the good news to his lovely family. They dance with joy, thanking God for his great abundance. His wife, in spite of her reservations, trusts Antonio. He's worked hard for this gift. Antonio uses the card immediately. He takes his wife to that new restaurant down the street he could never afford. On the way home he stops at the jewelry store and buys his wife a little token of his love and charges it. Mrs. Sanchez silently worries about her husband's newly discovered treasure. Days later Antonio opens his credit card bill. He's maxed the card out and his minimum payment doubled. "How could this be," Antonio wonders. "I'm always so careful." Antonio makes the minimum payment only. He struggles to do so. He must now cut back on his beer and movie rentals. Life goes on. Antonio works hard. He looks forward to the day when he can vote as an American citizen. Days turn into weeks and the weeks into months. Antonio receives another congratulatory letter from BOA. This time, giving him a new, shiny credit card. They call it platinum. It still feels like plastic, but Antonio notices with the new card comes an increased credit limit. So he dances for joy and forgets about the details. Now Antonio can rent those weekly movies his kids so wanted to see. He also takes a little trip. Before he goes on this little vacation, however, Antonio makes needed repairs on his car and charges them to the shiny card. He receives the bill weeks later. When he opens the letter Antonio feels a sharp pain shooting through his left arm. He's maxed his card out again. What's worse, the minimum payment doubled. He panics. He tells his wife, "I cannot make this payment." Mrs. Sanchez cries, "Antonio, what are we to do?" "You must get a second job," he demands. "You know I can't take on any more," she replies. "I have all these mouths to feed." "You must work more," Antonio exclaims. "Oh that card," she replies. "That card let the devil into our house. He made all kinds of enticing promises to us. He made this card look like the forbidden fruit in the garden of Eden, Antonio, and you fell for it." Antonio plugs his ears with his index fingers, stomps off and mutters, "Those fools. They screwed me." Meanwhile, Antonio misses a payment. He anxiously opens the next BOA letter. What Antonio reads now increases his angina pains greatly. The letter states: "Mr. Sanchez, we have reviewed your credit and made a decision to increase your interest rate from 12% to 32%. Please make prompt payments. If you have any questions, feel free to call us at this number." Antonio runs immediately to the phone. He dials the toll free number provided in the letter. The recorded voice goes through a menu. He pushes the number for customer service. They tell him he must wait 2 minutes before speaking to a customer representative. Finally, after 15 minutes a friendly young woman who speaks in broken English comes on the line. Antonio says he cannot make this payment. The nice young lady tells him she will direct his call to someone who can help him. An hour later Antonio speaks to a fourth representative. This time he feels hopeful. The customer rep. sort of empathizes with him, but ends the call abruptly by declaring, "I'm sorry Mr. Snachez, you must make this payment. I cannot lower the interest rate. These are our rules. Have a good day." Antonio feels helpless. What shall he do? He has no one to turn to. His brother gets him in touch with a lawyer. This attorney makes a long story short and admits, "Mr. Sanchez, BOA's policies are legal." Meanwhile, Antonio's relationship with his beloved wife looks like a sinking battleship. Each shoots at the other until they see a marriage full of wounds and scars. The children develop wounds from the battlefield's flying shrapnel. Mrs. Snachez can no longer stand in the ring with her husband. One day, Antonio returns from work and discovers the tragic note left on the refrigerator. He struggles to read the scratching. Tears begin to flow. He wads the letter up in anger, picks up the phone and calls his his sister-in-law. She claims Mrs. Sanchez cannot talk to him now. Perhaps he could call back in a few days. Antonio's heart breaks. His soul feels so hollow. He cries out to God, "Please Senior, help me get my family back!"
Anyone who suggests this story appears far fetched needs to visit with a few ministers and several district judges. Judges inform me that approximately 80-90% of all divorce proceedings in their courtrooms came by way of credit card debt. The industry wreaks of immorality. Banks entice unsuspecting people with these starry-eyed propositions, encourage them to increase their debt, then hit them with an unmanageable obligation. It's all perfectly legal. Again, most responsible individuals realize that interest can either work for you or against you. Some folks wake up to this reality early. Yet, others wait late in the game- almost to the point of losing their very souls.