LOS ANGELES – A Latino civil rights organization filed a lawsuit Thursday against a Los Angeles credit union for unlawfully denying a loan to a DACA (Deferred Action for Childhood Arrivals) recipient on the basis of her immigration status.
MALDEF (Mexican American Legal Defense and Educational Fund) filed the federal suit challenging the lending policies of University Credit Union (UCU) on behalf of Saray Ortiz, 39, of Los Angeles. The credit union discriminated against Ortiz when it denied her an auto loan because she obtained her social security card through DACA, according to the complaint. MALDEF attorneys say UCU’s policy violated Section 1981 of the federal Civil Rights Act of 1866 and the California Unruh Civil Rights Act. Together, the laws prohibit discrimination based on citizenship and immigration status.
“UCU communicated to Ortiz, on more than one occasion, that it had approved the loan,” said Luis Lozada, a staff attorney with MALDEF “However, when Ortiz provided her Employment Authorization card, UCU reversed its approval and denied the loan, demonstrating that UCU made the conscious decision to deny her because of her DACA status.”
On February 14, 2024, Ortiz obtained a checking account and membership with UCU through her employer. The following day, she applied online for an auto loan. A credit union representative phoned Ortiz that same day to get her driver’s license number and expiration date, information on her employment, and her Social Security number. After the call, Ortiz received an email telling her the loan was approved for $18,000. As a DACA recipient, Ortiz has a Social Security number authorizing her to work.
Despite initial approval, Ortiz received an email a day later asking her to provide her DACA Employment Authorization Document. Ortiz provided the information requested. She then received an email telling her that the loan was not approved. UCU then sent Ortiz an “Adverse Action Notice” confirming that credit would not be extended on the terms she requested.
Ortiz eventually bought a car but at a substantially higher rate of interest than if she had received the loan from UCU.
“Receiving approval for a car loan, only to later be informed that it was withdrawn, was a stark reminder of the ongoing challenges immigrants endure in this country,” Ortiz said. “I experienced discrimination and unfair treatment during the loan process because of my DACA status. Credit discrimination restricts access to opportunities and impedes wealth advancement, underscoring the crucial need for lenders to adopt fair, equitable, and non-discriminatory practices.”
UCU was founded in 1951 on the campus of the University of California, Los Angeles, by university employees, according to information on its website. As of March 31, UCU has over 53,000 members and total assets of almost $1.2 billion, according to ibanknet.com.
This lawsuit was filed in the U.S. District Court in the Central District of California and seeks class certification. It is the 14th lawsuit filed by MALDEF since 2017 challenging the policies of financial institutions that discriminate against DACA recipients.
Read the complaint HERE.