Financial Information
Why can banks open checking account for illegal immigrants?
Question : Why can banks open checking account for illegal immigrants?
I don’t understand how that works. If you don’t have a social security number, you shouldn’t have a US bank account. Why do banks let illegals have accounts?
open a checking account
Best answer:
Answer by Edward Bongshanks
For the money. There is no law forbidding them from doing it. A bank’s main priority is to make money and they don’t care how they do it or where it comes from.
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#2 written by Yadiga 1 year ago
any bank that opens an account for any customer will need a idenfication number. Well even an illegal does not have a ssn he will have to apply for a ITIN which is form W7. This form can be found on http://www.irs.gov. and you can tell it is an ITIN because mostly all of them start with a 9. ITIN is for an individual. Individual Tax Identification Number.
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#3 written by Donna 1 year ago
Actually there are federal banking regulations in place that are supposed to require a social security number or TIN in order to open any kind of account. Banks have been sneaking around this requirement. Bank of America is right now in a lot of trouble for doing just that. In time other banks will be put under the same scrutiny.
As for Swiss bank accounts. Americans can still open and hold them, but as of this year the Swiss government has made an agreement with the US to release all account information to the American government in regards to American citizens accounts. The federal government has given all American citizens a certain amount of time to come forward and admit to possessing these accounts. If they do not then when the government receives the information these people are going to be slapped with hefty fines and possible jail time for tax evasion. The days of people hiding money in Swiss accounts are over.
Donna -
#5 written by ♥♥Cheelicious♥♥♥ 1 year ago
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#7 written by Kize 1 year ago
illegal aliens should not have any of the privileges for American citizens. It is a travesty the way banks have played up to these people. And now look at some of their consequences because of it. Any bank that allows an illegal anything, whether it be a checking account or a loan should be charged in aiding and abetting. They are encouraging them to stay and break laws!!
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#9 written by Dicken C 1 year ago
I’m a Canadian, living in Canada and I have a US bank account. didn’t need a social security number (whatever that is). I’m sure the bank likes charging me service fees and making money on me, regardless of where I live and what my nationality is.
You would also be surprised about the number of americans having bank accounts on Grand Cayman Island and Switzerland. Don’t need to be citizens of those places either to hold bank accounts.
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They allow it because they know they are a good risk. And they can with Individual Taxpayer Identification Numbers (ITIN). Especially when it comes to home loans. Illegals buy homes they can afford, and houses they want to raise their families in, not to turn around and make a quick buck or ‘keep up with the Jone’s’ like many Americans do.
http://rismedia.com/2007-10-12/home-loans-to-illegal-immigrants-sturdy-but-show-some-cracks/
Home Loans to Illegal Immigrants Sturdy
RISMEDIA, Oct. 15, 2007-Despite the downturn of the mortgage market, a type of home loan has remained surprisingly sturdy: one extended to illegal immigrants.
Now, the question is whether these loans will continue to hold up. A number of factors — including a possible government crackdown on illegal workers and a slowdown in job prospects for undocumented laborers — threaten the ability of these borrowers to keep paying. And there are signs of a slowdown as some lenders have raised the interest rates they charge because of the recent mayhem in the credit markets.
http://www.bloggingstocks.com/2007/10/09/illegal-immigrants-dont-default-on-mortgages/
Illegal immigrants don’t default on mortgages?
Here’s a fascinating story from The Wall Street Journal: “Despite the downturn of the mortgage market, a type of home loan has remained surprisingly sturdy: one extended to illegal immigrants….For loans more than 90 days in arrears, ITIN mortgages have a delinquency rate of about 0.5%, according to independent estimates. That compares with 1% for prime mortgages and 9.3% for subprime mortgages extended to those with spotty credit histories.”