Special debit cards assist immigrants
NEW BRUNSWICK, N.J. – Jose Manuel Aparicio had come up with all kinds of clever ways to stash his construction job wages: He slipped bills between pages of books hidden in his bedroom closet and stuffed money into an old sock in his laundry – places thieves weren’t likely to look.
Without a bank account, “somebody can steal it,” said the 20-year-old, who came to the U.S. from Mexico three years ago.
Then three months ago, Aparicio applied for a special debit card created to assist immigrants who don’t have Social Security numbers to open savings or checking accounts – or for people who don’t trust banks.
A nonprofit worker center here called New Labor, which helps immigrants learn English and find jobs, in November became the first in the U.S. to offer the “Sigo” card – a combination of Spanish for “yes” and English for “go.”
The center has distributed 300 cards so far. The program – affiliated with MasterCard – is under way at eight other worker centers. Organizers hope to make it available to thousands of immigrants at 140 worker centers nationwide, enabling them to use ATMs and store credit card machines, pay bills online and avoid high fees for sending money home or cashing checks.
Janice Fine, a Rutgers University labor relations professor who helped create the program, said immigrants often feel intimidated by banks. In a survey Fine conducted of 480 immigrants who were members of worker centers – which charge dues and lobby for better conditions for low-wage workers – 47 percent said they did not have a bank account. The Sigo cards are offered by worker centers because they have developed bonds with immigrant communities.
Critics have denounced such efforts to integrate illegal immigrants in the banking and credit world – accusing them of aiding criminals – but Sigo organizers worry such offers by traditional banks will take advantage of low-income immigrants.
“It’s not like they’re doing it out of the goodness of their heart,” said Lauren Leimbach, of Community Financial Resources, a nonprofit that helped launch Sigo along with the Center for Community Change. Banks “are going to make very good money off of them.”
Sigo cards, which cost $4.95 to start and $2.50 a month, are similar to gift cards for retail stores. But users can add money to their card balance by signing up for direct deposit of their paychecks or by making deposits.
Worker centers require cardholders to provide just one form of identification to open an account, which could include records from the immigrant’s home country.
Aparicio said he used to spend $25 to $35 wiring most of his earnings to his family for safekeeping, leaving little for him to live off of. Now he can help support his parents while keeping enough for rent and food.