DACA Discrimination Lawsuits Target Lending Practices
DACA Discrimination Lawsuits Target Lending Practices
A prominent Latino legal and civil rights organization, the Mexican American Legal Defense and Educational Fund (MALDEF), has continued pursuing DACA discrimination lawsuits against financial institutions. Over the past seven years, MALDEF has filed ten lawsuits, including two filed last week. The organization alleges that certain lenders have denied loans and services to eligible DACA recipients based on immigration status, which it argues violates civil rights protections.
Background on DACA and Financial Eligibility
Deferred Action for Childhood Arrivals (DACA) allows nearly 580,000 undocumented young adults to work and study in the United States without immediate risk of deportation. Many DACA recipients hold employment authorization cards and social security numbers, which allow them to apply for loans, including auto and home loans. However, the program requires recipients to renew their status every two years.
Recent Lawsuits Filed by MALDEF
The most recent lawsuits target Noble Credit Union and a branch of First Tech Federal Credit Union in Oregon.
In the case against Noble Credit Union, MALDEF represents 28‑year‑old DACA recipient Noemi Peraza Lopez. According to the lawsuit, the credit union initially approved her for a $35,000 auto loan. It later denied the loan, citing the “limited‑term” status of her driver’s license. MALDEF alleges that this decision forced Peraza Lopez to obtain financing elsewhere under less favorable terms.
The lawsuit involving First Tech Federal Credit Union represents 31‑year‑old DACA recipient Ismael Rodriguez Perez. He was reportedly told that he qualified for a home equity loan but was later denied because of his immigration status. The credit union allegedly required him to possess a green card, which is available only to lawful permanent residents.
Ongoing Legal Efforts
These cases are part of MALDEF’s broader effort to challenge lending policies that it views as discriminatory toward DACA recipients. In 2017, MALDEF sued Wells Fargo, which later settled the case. Under the settlement, the bank agreed to pay more than $18.7 million to affected DACA recipients and revise its lending practices.
Despite settlements in several cases, MALDEF has stated that it seeks clear judicial rulings on the legality of such practices. The organization has indicated that future litigation could reach the Supreme Court. MALDEF has also called on Congress to clarify federal law concerning discrimination against certain immigrant groups, including but not limited to DACA recipients.
For general information on DACA policy, see U.S. Citizenship and Immigration Services
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