LOS ANGELES – A federal judge has granted final approval of a class-action settlement between Alliant Credit Union and a group of immigrants who were denied credit because of their immigration status.
MALDEF (Mexican American Legal Defense and Educational Fund) represents DACA (Deferred Action for Childhood Arrivals) recipients and other immigrants who comprise the settlement class.
As part of the agreement, the Chicago-based credit union will change its policies and establish a settlement fund of $86,750 to be paid to class members. The settlement is one of several MALDEF has reached with financial institutions that deny services to DACA recipients and other immigrants based on their status rather than credit-worthiness.
The settlement provides that California class members will receive $2,500 each, while national class members will receive $250 each. The credit union must also pay attorney’s fees and other costs.
“After more than two years since the complaint was filed, the plaintiffs and class members will receive substantial relief achieved through settlement with Alliant,” said MALDEF staff attorney Luis Lozada. “More important are the policy changes that will allow DACA recipients and other immigrants access to the same financial products and credit based on their ability to repay like anyone else.”
MALDEF filed suit in 2022 on behalf of Yuliana Camacho, 29, of Salinas, California. Camacho had applied to Alliant for an auto loan but was told that she was ineligible because she was a recipient of DACA and not a citizen or legal permanent resident of the United States.
“I am happy this had a good outcome,” said Camacho. “Alliant needed to change its policies, which is why I contacted MALDEF for support. It is surprising to see that in this day and age, companies have policies that discriminate against certain groups. Thank you to all the attorneys who worked on this case. This is a huge win!”
Another plaintiff, Joshua Soto Lopez, 28, of Visalia, California, joined the lawsuit in 2024 as a national class representative. He was denied a home equity line of credit because of his DACA status.
“I am relieved and pleased that the court has approved the class-action settlement,” said Soto Lopez. “This is an important step toward justice for DACA recipients everywhere who were affected, and it represents a meaningful resolution to one of the issues we’ve faced being marginalized due to our immigration status.”
The lawsuit was filed in the U.S. District Court for the Northern District of California and brought claims under 42 U.S.C. § 1981 of the federal Civil Rights Act of 1866 and California’s Unruh Civil Rights Act.
Since 2017, MALDEF has filed 15 lawsuits challenging the policies of financial institutions that discriminate against DACA recipients.
Read the final approval order HERE.