DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Bank of America targets illegals for credit cards

**rsdefwgxvcfdts** · 02-14-2007, 12:28 PM

Though I disagree with the practice of BOA, I heard on MSNBC that BOA is going to make the interest rate for these types of accounts somewhere like 28%.

I think I read that, too. The interest rate will be much higher than normal since they are higher risk.

I hate to say this, but this is just good business sense. Perhaps the idea of what they are doing is questionable, but it makes sense nonetheless.

I've been trying to figure out how it is good business sense. I considered that they plan to charge the higher rate for non-documented illegals so they may be compensating for that increased risk. But I think no matter what the rate is they charge, the risk is higher than that increased rate will be able to cover - just my thoughts. I think, regardless of the rates they charge, once this starts, BoA will see huge numbers under their bad debt/write-offs during the next fiscal year. They will have to offset that somewhere and I'm wondering how.

02-14-2007, 12:28 PM	#27
rsdefwgxvcfdts Join Date Oct 2005 Posts 539 Senior Member	Though I disagree with the practice of BOA, I heard on MSNBC that BOA is going to make the interest rate for these types of accounts somewhere like 28%. I think I read that, too. The interest rate will be much higher than normal since they are higher risk. I hate to say this, but this is just good business sense. Perhaps the idea of what they are doing is questionable, but it makes sense nonetheless. I've been trying to figure out how it is good business sense. I considered that they plan to charge the higher rate for non-documented illegals so they may be compensating for that increased risk. But I think no matter what the rate is they charge, the risk is higher than that increased rate will be able to cover - just my thoughts. I think, regardless of the rates they charge, once this starts, BoA will see huge numbers under their bad debt/write-offs during the next fiscal year. They will have to offset that somewhere and I'm wondering how.
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