July 2, 2009

Bank Exploits Latino Immigrants

Posted by Nina Jacinto at 2:00PM

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A mere three weeks after news appeared about the NAACP filing lawsuits against Wells Fargo and HSBC Holdings for predatory lending against black communities, the LA Times has reported that Bank of America has been involved in similar racist practices against Latino immigrants. Tom Hamburger reports on testimonies by tellers such as Gabby Ornelas, who was ordered by her employers to utilize her own identity and Spanish speaking skills to market high fee banking services to Latinos. Bank of America denies these allegations and defends their selling practices, arguing that they offer services that they think are important for customers of all backgrounds.

Workers, some of who are coming forward against Bank of America after being fired or laid off because of the recession, are being backed by the Service Employees International Union (SEIU). SEIU has taken on the Bank of America in the past, urging the company to fire their CEO Ken Lewis, and fighting against predatory lending practices to protect workers' families as early as 2007. If Bank of America is targeting immigrants for high interest credit advances and other services that lead to high fees and charges later on, then the company is helping to prevent people of color and low-income individuals from gaining wealth and providing their families with economic stability.

In the midst of hearing about how subprime and predatory lending has been a huge factor in the foreclosure of homes and continued economic disparities, it's a harsh reminder that there are other racist bank practices that encourage inequalities. Many immigrants and low-income individuals may not be able to even open checking or savings accounts without being targeted through systemic racism.

I will be following up on the details of this case, as news unfold and we hear a bit more from the Bank of America and its workers.