Back in February, I tried to open a BBVA debit account called Libretón Premium, which offers unrestricted deposits and minimal charges if a minimum balance of $4,000 MXN pesos is maintained in the account.
Despite meeting all of the qualifications posted on bbva.com, I was denied this product by the banker I dealt with at the BBVA branch on Av. Americas in the Providencia neighborhood of Guadalajara.
Instead, I was offered a basic debit account called Libretón Basico Digital, which BBVA markets as a product for children and/or those with limited banking experience.
I was told at the time (in so many words) that I could open the basic account or nothing at all. It was blowback for my refusal to purchase an unwanted “Meta Segura” insurance policy alongside my new debit account.
For those readers unfamiliar with the oftentimes shady, underhanded tactics of Mexican banks, you may want to read my previous blog post on this episode before continuing.
Upgrading a Basic Account to a Premium Account
The basic account I’d opened back in February delivered exactly what I expected.
It failed to cover my household’s monthly cash needs in Mexico with a paltry deposit limit of $23,000 MXN per month (about $1,140 USD at current exchange rates). This limit is well below what the typical expat household in Mexico needs to fund its everyday living expenses in 2024.
So after 10 months with a bank account that didn’t fit our needs, I decided it was time to try again.
I returned to BBVA earlier this month. This time I opted to try a branch in Zapopan Centro – to see if I could upgrade my basic account to the Libretón Premium account.
Before visiting the bank branch, I re-checked BBVA Mexico’s website to confirm I still met the requirements to open this type of account. (I did)
Seeing that the website also listed the requirements a foreigner in Mexico must satisfy to get this premium product, I printed the webpage to use as a reference.
In case you’re curious, these are the published requirements for foreign residents to open a Libretón Premium account:
- Over 18 years of age
- You have a Mexican phone number
- Legal residency in Mexico (FM2 or FM3 visa)
- Valid passport
- CURP certificate
- Proof of address no more than 3 months old (best options are a CFE bill, water bill, rental lease, cable TV, or mobile phone bill). It does not need to be in your name.
Meeting all of the requirements with the added benefit of a 10-month track record as a BBVA customer, I figured it would be tough for them to deny me a second time.
BBVA’s Account Conversion Process
I visited BBVA on a Thursday morning. The branch wasn’t too busy but I still had to wait about 15 minutes before getting in front of a banker.
By chance, I’d met Luis (the banker) previously when one of BBVA’s ATMs had eaten my debit card for no reason and I needed a replacement.
On this visit, I explained to Luis that my basic debit account was too restrictive and that I wanted to upgrade to one with no deposit restrictions. I shared the web page describing a Libretón Premium account and said this product better suited my needs.
Luis nodded and asked for the required documentation. Besides confirming that I had all the relevant information, he also asked me what I did for a living and how much I expected to deposit each month.
While entering my information, I asked Luis to explain the charges and commissions associated with the Libretón Premium account, since the website did a poor job of explaining such mundane details.
He explained that Libretón Premium account holders are charged $180 MXN per month anytime their balance drops below $4,000 MXN. There is also a fee if the owner withdraws cash from an ATM more than five times a month using their debit card. For who knows what reason, cardless withdrawals (initiated with the mobile app) incur no limits or fees.
My basic account already had this minimum balance satisfied, so I had no worries about being slapped with onerous recurring fees.
With respect to account maintenance fees (i.e. a fee for the account’s existence), I never got a direct answer. The website states that maintenance fees are waived if the account holder owns other products through BBVA such as investments, an insurance policy, or payroll deposits tied to their debit account.
For standalone accounts, Luis suggested there would be “no problem” if I maintained a minimum balance, but didn’t say directly that there would be no fee. Hmmm.
Once Luis had reviewed and copied all of my documents, a senior banker approved the account changes. Luis asked me to step aside and wait while a new contract was prepared.
About 30 minutes later I was shuttled over to the assistance desk where I was told the new contract was ready for an electronic signature. Recognizing that this was the most likely way for the bank to slip in some undisclosed new (and undesirable) product “feature” I asked the employee to print it so that I could “make sure I understand everything.”
Another Bait & Switch?
Paco (the assistance desk employee) printed out page 1 titled “Contract “Annex” and I started to read. I immediately noticed that the Annex identified the product as “Libretón Basico Digital.”
Baffled that I didn’t see the Libretón Premium mentioned anywhere on the page, I said, “This annex refers to the account type I already have… I’m trying to convert to the premium product, so this isn’t correct.“
As if to reassure me, Paco pointed to the box on the page where the basic account type now read “Level 4.” I thought to myself… what the heck is “Level 4”?
Luis had never mentioned I’d be keeping the “Libretón Basico Digital” account or anything about account levels.
So I pointedly asked Paco, “Why wasn’t I given the Libreton Premium account that Luis and I discussed?”
In response, he waved his hand in the air and said, “Oh, that one has more fees,” making it sound like exactly the kind of thing BBVA would prefer to sell me. It didn’t make sense.
It felt like another bait and switch, so I asked for the full printed contract. To my surprise, Paco didn’t resist the request. He printed all 18 pages of dense legalese and handed it to me.
I thanked him and left the bank, spending the rest of the afternoon translating all of the sections related to the different account types and conversions. There was a ton of detail.
As I progressed, it was mystifying that account types weren’t mentioned in BBVA’s marketing materials or even acknowledged by salespeople when opening or converting accounts.
Surprisingly, I couldn’t recognize my initial account terms in any of the descriptions. Had the first sales guy in Providencia dreamt up “custom” rules for a new foreign account holder like me?
Who knows?!
I combed through all the fine print related to commissions, fees, and account level changes and found some minor differences between the Level 4 “basic” account and a Libretón Premium account.
There was a $62 MXN monthly “membership” charge, which premium accounts didn’t have. But there appeared to be no minimum balance requirement. There were also assorted fees that were unlikely to get triggered via normal banking activity.
Luis hadn’t mentioned any of these fees to me when we spoke about account costs.
Though I couldn’t explain why, BBVA seemed determined to keep me from getting the Libretón Premium account even though I met all the application criteria.
I returned the next day and signed the documents to convert my basic debit account at a mystery level to a basic debit account at “Level 4” figuring it wasn’t worth starting anew to try for a premium account. My debit account’s newly elevated status had achieved my main objective — removal of deposit restrictions.
In hindsight, it seemed like a backdoor solution for BBVA customers seeking better account terms who also happened to fit the profile of someone the bank wished to keep away from premium accounts.
While BBVA’s reasons for doing so aren’t clear, I’d wager a case of Krug champagne that it has nothing to do with protecting customers’ interests.
Bottom Line: Be Careful When Dealing with BBVA
Despite experiences like this BBVA is still considered one of the best banks in Mexico for expats. This is due to its huge branch network across the country and superior tech tools (its mobile app) that make it easy to transfer money, pay bills, and invest without needing to visit a branch.
But it doesn’t negate the fact that BBVA frequently plays games with its foreign customers. For doubters out there, I’ve got an email inbox filled with messages from expats (and even a few Mexicans) who’ve endured the run around like me, with many sadly faring far worse.
Read the fine print before signing anything. Even if it takes longer.
Don’t trust BBVA’s bankers to give you what you want. More often, they give you what they want to sell, sans explanation.
I say this not only based on first-hand experience but as someone who’s worked in investment banks. Retail bankers (aka salespeople) do not sell anything that isn’t in their interest to sell, i.e. it doesn’t generate decent commissions and fees, or minimize the bank’s obligations.
Perhaps BBVA faces more reporting requirements when foreigners are sold premium products with higher (or no) deposit limits.
Maybe this opaque “level 4” of a basic account is a way for BBVA to reduce scrutiny from Mexican regulators and foreign tax authorities like the IRS. Or it simply reduces bankers’ workload.
For now, I’m cautiously optimistic my new account will deliver on our needs with no major downsides – but I wouldn’t be surprised if there’s another shoe to drop.
I’ll watch my account especially closely in the months ahead. But one thing I have no illusions about is learning why I was denied a Libretón Premium account for a second time.