PHOENIX -
At issue is a savings account the credit union has aimed at immigrants (CU Journal, Jan. 15). The goal, the credit union said, was to offer a safer place for immigrants to put their money. Many immigrants, especially Hispanic immigrants, are known to avoid established savings institutions and often keep their savings on their person or hidden in their homes. The result is they are often the victims of robbery and other crimes.
But the credit union's intentions have run smack into the divisive issue of illegal immigration, a hot button in Arizona. After the product's launch it was reported in local newspapers and then later on national Fox News, in both cases with suggestions the account was aiding illegal immigrants. Desert Schools FCU confirmed it does not seek to ascertain the citizenship of a new account-holder.
After watching Desert Schools discussed on national television, Public Relations Manager Jason Meyers told the Credit Union Journal that Desert Schools was doing outreach to the immigrant community, not the illegal immigrant community.
Illegal Immigrants Not Targeted
"Desert Schools does not offer accounts to illegal immigrants," Meyers said in a released statement. "We have and will always require proper identification for all Desert Schools accounts in accordance with National Credit Union Administration regulations and consistent with many other credit unions across the nation. We are not targeting illegal residents, but do wish to shed light on the fact that many immigrants fall victim to non-traditional check cashing operations, fraud and theft. We will continue to offer accounts that exceed the expectations of our members while providing the stellar service that Desert Schools is famous for."
Some news reports, however, have not portrayed the account that way.
"It is a lightning rod issue, and the press got hold of it and ran with it," he said. "The [Arizona] Republic [newspaper] article made it sound as if we are marketing to illegals. We do not have a special product for illegals. Credit unions do reach out to the underserved. We are trying to shed light on the issue of fraud and on immigrants' reliance on check cashing and payday lending companies."
Meyers said Desert Schools follows U.S. laws and regulations regarding opening accounts. All persons are asked for their identification, but none are asked their immigration status. "We are not in the business of asking what their citizenship is. We are not required by law to do that," he said.
U.S. ID Not Required
According to Emma Garcia, director of community development for Desert Schools, the CU has offered a savings account for people without U.S. identification for a couple of years, but last month began taking steps to promote it. Any immigrant who has an unexpired Matricula Consular Identification Card issued after June 2002 is allowed to open an account. The Matricula Consular is an official identification card issued by the Mexican government through its consulate offices in the U.S., the CU said.
In a Dec. 9, 2003 letter from NCUA to credit unions, the regulator said members could use the Matricula Consular as identification instead of a Social Security number. The Matricula Consular identifies an individual, but does not state his or her immigration status in the U.S.
In January, Garcia said DSFCU was not concerned about wading into the hot-button issue of illegal immigration. She said the credit union has a long history of working with non-profits and community outreach groups and "we feel it is an important service to offer to the community.
"There will be some groups with strong opinions, but if there are fewer individuals with large amounts of cash, there will be less crime in the community. It is important for people to have money in a secure location."
Pat Bodnar, senior VP with the Arizona CU System, said a misconception in the general public helped fuel the recent controversy.
"Just because someone is Hispanic does not mean he or she is an illegal immigrant," she said. "Desert Schools was trying to reach out to the immigrant population. It is tough when the wrong message gets out-and now it is on Fox nationwide. I feel bad there is a backlash. It doesn't warm your heart that people are upset."
Bodnar noted home invasion robbers target immigrants in all parts of Arizona-because the criminals know immigrants have cash.
"Desert Schools was reaching out, as many other financial institutions are doing. There are many financial institutions that have accounts like this, but they don't publicize for this reason (potential for controversy)."
'Aiding & Abetting? No'
Sylvia Lyon, president and CEO of the CU Association of New Mexico, lamented the firestorm that engulfed Desert Schools. She said credit unions are trying to reach out to the Hispanic population and are attempting to help them become financially successful.
"Credit unions have always helped educate people. Are they aiding and abetting illegal immigration? No," she declared. "It seems Desert Schools tried to do the right thing and someone took issue with it. Anyone could take anything that was a good faith plan to do the right thing and turn it into the wrong thing, if they want to."
The $2.7-billion Desert Schools FCU is Arizona's largest and serves 325,000 members.
