Credit card craziness

WHEN THE PRESIDENT called Barry signed legislation a year or so ago, he canceled my U.S. bank account and the U.S. accounts of many other U.S. citizens living outside America.

This colossally ill-conceived legislation goes by its initials, FATCA. You can look it up if you care. Basically, it was intended to nail fat cats who were hiding their riches in offshore accounts. What it actually did was hose innocent Americans, mostly retirees, who had the good sense to live elsewhere.

I was one of those hose-ees.

flagThe United States is the only nation on earth that taxes money held by its citizens in other countries. It is a desperation move due to the sea of bloody red ink the nation irresponsibly swims in.

Entitlements add up. Redistribution only goes so far.

FATCA did not directly cancel all those U.S. bank accounts. What it did was impose burdensome paperwork on banks in the United States with account holders living beyond the borders. And many banks, likely most, found it more convenient to just close the lower-end accounts.

Last July … with very little warning.

My U.S. bank was Banamex USA, the American branch of one of Mexico’s biggies, Banamex. Don’t let the name fool you. Banamex USA must play by U.S. rules. It’s owned by Citicorp.

WE DON’T WANT YOU ANYMORE

I opened the letter that arrived in my post office box in late June and read: After examining your account, we regret to inform you that we can no longer service your account. It will be closed on July 1.  I was mildly annoyed. It was only later that I began to think of all the fish I had in that sea.

The enormity of this event began to sink in.

I receive two pensions. One is Social Security. By pure luck, just months earlier I had switched the automatic deposit from Banamex USA to HSBC-Mexico where I had just opened an account due to dissatisfaction with the Mexican Banamex. But the other, corporate, pension was deposited in Banamex USA.

That corporate pension is distributed by an arm of Wells Fargo. I phoned them and was told they only did direct deposit to U.S. banks, not foreign ones, and the sole alternative was a check in the mail. The problem with Option Two is that you cannot deposit or cash a U.S. check in Mexico anymore.

Thank U.S. legislation again.

It is virtually impossible these days to open a U.S. bank account without a U.S. address and driver’s license, neither of which do I possess. So when Banamex USA dumped me, well, …

After lots of stress and frantic activity, I got Wells Fargo to initiate pension direct deposits outside the United States. I imagine I am still the only person they do that for.

When I moved to Mexico in 2000, I had just opened a checking account at Banamex USA, and I had three credit cards which were paid online from that account. Then the credit cards began to fall by the wayside.

The first to go was a Visa I used to pay for Sky TV in 2003. Without going into dreary details, Sky began to abuse the card. I asked the issuing bank to stop them, but the bank told me they could not, that only Sky could cancel the agreement.

Absurd. So, I canceled that card. Adiós, Sky TV. But adiós credit card too.

Two cards left. One was a Wells Fargo Mastercard, and the other was an AT&T Visa. I had my Mexican mailing address on both. Renewal cards for the AT&T Visa were express-mailed here with no problem. The Wells Fargo people, however, were much more ornery.

Their “fraud department,” before activating a renewal card, insisted I go to my local Banamex branch and have all manner of complex paperwork done to prove that I was the person I said I was. This paperwork would have been a real challenge at a Mexican bank where procedures are quite different.

WHERE THE SUN DON’T SHINE

I told Wells Fargo to put the card in what would have been a painful place had it been on a human being. There would have been no sunshine there. So I was down to just one credit card.

I consider two credit cards a minimum, so I went to my Banamex branch here in town and requested a credit card. They gave it to me with a limit of just 15,000 pesos, about 1,000 dollars. They absolutely would not raise the limit to something reasonable. And there was a sizable annual fee.

About a year later, I canceled it in a snit, and was left with one card. I use credit cards exclusively online, absolutely nowhere else, but online is important because I shell out not much, but regularly, online.

And then came last June’s letter from Banamex USA, canceling my account and leaving me with no easy way to pay the AT&T Visa card. I still have the card, but it sits idle and useless.

I returned to Banamex and asked them to reissue the card I had canceled. Nah, they said. FATCA was not mentioned, but that is without a doubt the reason they would not reissue the card.

My U.S. citizenship was mentioned. Thanks to Washington D.C., again.

I canceled my longtime account at Banamex in Mexico. It had always been a pain anyway.

TOO OLD TO TRUST

So I went into my local HSBC-Mexico branch and asked for a credit card. At age 70, I was too old, I was informed. Yes, age discrimination is alive and well down south. It’s an unfair world. But I don’t get huffy. It’s life.

As I consider two credit cards a minimum, I also consider two banks a minimum, so I opened an account with BBVA Bancomer. For a credit card, they require an account to be open a few months and that a minimum balance of 6,000 pesos be maintained. I did that.

On Wednesday, they gave me a nice, shiny, blue Visa card with a 50,000-peso limit, which is okay. My child bride has a high-balance account with HSBC-Mexico that came with a no-questions-asked credit card, and spouses automatically get one too. I got one last year, but it’s connected to her account.

No matter. My two-card minimum is fulfilled.

So what did I do the eight months between the time my AT&T Visa was sidelined and getting my own Bancomer Visa this week? I used my HSBC-Mexico debit card for online purchases, which is not wise. Debit card purchases come right out of your checking account. A credit card provides a security barrier.

LAND OF THE CHESHIRE CAT

catWeirdly, a week ago, every online account that used my HSBC-Mexico debit card found that charges were rejected. This came out of the blue.

HSBC-Mexico says there is no reason for this to be happening, but it is happening. I view this as part of the Alice-in-Wonderland tone of Mexican life.

Thursday, I switched all online charges to my shiny new Bancomer Visa. I am a happy boy. Everything works out if you wait long enough. It is the way of the Goddess.

(If you read all the way down here about my credit card situation, you deserve a medal.)

* * * *

(Update: About six months later, I got a phone call from HSBC-Mexico, asking if I wanted a credit card. Apparently, I’m not too old to trust after all. I accepted the card.)

14 thoughts on “Credit card craziness”

  1. Things will get more difficult in the future. The U.S. government can have the Fed print endless amounts of currency, but they cannot print loaves of bread or jars of peanut butter. That means more inflation.

    We will see the government try to pay its debts by seizing the savings and retirement accounts of the people. The government wants to know where you put your money, just in case they might need it.

    If you sell that condo, make sure the transaction is in your wife’s name only. Otherwise, you will find that you will have a tax problem.

    Of course, it will all happen in the name of social justice. You, the wealthy, must pay your fair share.

    http://money.usnews.com/money/blogs/capital-commerce/2008/10/29/401k-foe-teresa-ghilarducci-the-most-dangerous-woman-in-america

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        1. Carlos: It’s very easy. However, a friend in Morelia told me recently of an old Gringo there who, like me, was married to a considerably younger woman. He also had their house in her name. Then she up and died unexpectedly. Some of her relatives moved into the house with him and won’t get out. Perhaps he did not insist that she get a will. My wife has a will leaving everything to me.

          But I sure hope she does not go first, which is statistically highly unlikely. At my age, I don’t have any desire to go wife-hunting a fourth time.

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  2. That is a good analogy. Mexico is a lot like Wonderland (for us Gringos). Things are hard to understand, but there is usually always a way to get around the barriers (with the right connections and/or enough $).

    Have a great weekend, Felipe!

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    1. Mike: I’ve long made the Alice in Wonderland comparison. I think it fits. Lots of stuff here makes no sense to us. Maybe it does to them. And saludos to you, señor.

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  3. I hereby apply for my medal.

    Of course, I feel as if I have been serving in the same foxhole with you in this war against illogical American banking rules. I am not really happy with my solution of relying on only one northern debit card as my financial life-line. That option got me into trouble the first year I was here. Now, I am back to where I began.

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    1. Steve: I don’t know exactly how you have your banking connections set up, of course, but it sounds like you need to do more. The debit card from up north doesn’t sound like a good sole route. I quit doing that my first year here after I opened my regular Banamex account. Getting your SS direct deposited to a Mexican bank is easy. Well, it was almost two years ago when I opened the HSBC-Mexico account. Now I want to send it to Bancomer, but the Embassy SS line doesn’t put you on hold anymore. It just says it’s busy and abruptly hangs up. A little more investigation is in order.

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        1. Señor Cuevas: They do that? I might look into that if the regular, direct, channel appears to be a problem. It was easy the last time I did it, about two years ago. Fact is that it’s not high on the priority list at the moment. I still get it just fine.

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  4. What about keeping a US mailing address – for instance, a mail forwarding service? We use one out of Livingston Texas (no state income taxes, as you know) and another out of Laredo for local delivery. The one in Livingston holds our mail until we request that it be sent to our Laredo address where it is forwarded to us in Ajijic. Also, you are a veteran, right? Open an account with a credit union in Texas, and then set up a $100/yr mail forwarding service for a permanent Texas address. That way, you can have your direct deposit sent to the credit union and use a debit card in Mexico. I know you have it solved now, but in the future this might be an option. I don’t get a medal – I read it with one eye open so don’t think that counts.

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    1. Bonnie: I have a mail service in Miami that I’ve had about 13 years. It’s called USA Box, and I like it. I rarely use it, however. It just costs $5 a month. They’ve since doubled the fee, but they left me at five bucks.

      If Banamex USA had given me a better sort of warning, I think I could have just changed my address to Miami and continued on as before. Strangely, everybody I spoke to at Banamex USA totally denied the cancellation had anything to do with FATCA, a bald-faced lie.

      I have an IRA and annuity via The Vanguard Group. They started getting goofy about my living in Mexico after FATCA though I’ve been a client of theirs for 30 years, and they’ve known I’m in Mexico for the past 15. I changed my address with them to Miami, and all is now well. Vanguard is now my only U.S. financial institution, but it’s not a bank. I opened a check-writing money market, non-IRA, account with them when the FATCA thing erupted. If I ever need to write another dollar check, I can.

      As for opening an account with a credit union due to being a veteran, I betcha they would want a driver’s license or something like that initially. But it does not matter. I get my two pensions direct-deposited to HSBC-Mexico, and a few times a year I have Vanguard money wired to HSBC too. It all works fine, especially now that I got the Bancomer credit card in my name.

      Truth is that I want to have as little to do with the U.S. as possible. I am more disconnected than most Gringos who live down here. As for mail, I get mail from the U.S. delivered to my PO box here in town. Works great. The Mexican postal service is fine, just a tad slow. I do not care.

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    2. P.S.: Actually, I have come to regard FATCA as a blessing, truly. I am less tied to the U.S. now than before, which pleases me. I could let my U.S. passport lapse, and I wouldn’t lose any sleep over it, but I guess I’ll renew it when it comes due just to have the option to visit San Antonio or Houston if the urge ever again hits me. The urge hits my wife far more than it hits me.

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