This Issue Brief discusses the top ten reasons why efforts to shut immigrants out of bank accounts and access to credit is a bad idea, including:
- Banks will miss out on a huge swath of economic activity by debanking immigrants.
- Cutting off immigrants from credit will stunt business creation.
- Forcing immigrants to rely on cash creates safety risks.
- Debanking immigrants will reduce federal and state tax revenue.
- Debanking immigrants and cutting off access to credit affects families and communities.
- Deciding which immigrants lack legal status or work authorization is difficult because immigration status is fluid.
- Banks may risk ECOA violations in trying to determine immigration status.
- Asking lenders to consider immigration status forces them to make unreasonable predictions.
- Shutting out immigrants from homeownership will harm housing markets, especially in struggling areas.
- Hostility to immigrants will shut banks out from the biggest growth market in the United States.
See all resources related to: Banking, Payments & Remittances, Equity & Racial Justice, High-Cost Credit, Homeownership & Foreclosure