(LOS ANGELES) – A California Superior Court judge has granted preliminary approval of a class-action settlement between Noble Credit Union and recipients of Deferred Action for Childhood Arrivals (DACA) and other immigrants who were denied credit because of their immigration status.
MALDEF (Mexican American Legal Defense and Educational Fund) represents recipients of DACA and other immigrants who comprise the settlement class.
As part of the agreement, approved on August 22, 2024, Noble has agreed to create a settlement fund of $159,000 (excluding administration costs and attorneys’ fees) to compensate the class of immigrants affected by the challenged practice. 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.
“We are very pleased that the Court granted preliminary approval of this far-reaching settlement,” said Luis Lozada, MALDEF staff attorney. “The settlement provides the highest recovery to date, and demonstrates the growing recognition that immigrants have a right to credit. This is our second case in the Central Valley of California. With this settlement, the wider immigrant community will have access to much-needed consumer credit products.”
MALDEF filed the lawsuit in January on behalf of Noemi Peraza Lopez, a DACA recipient, and a member of California-based Noble Credit Union. Peraza’s application for a car loan was initially approved but then rescinded by the credit union because she is not a U.S. citizen or lawful permanent resident. Peraza, 29, of Fresno, applied for a $35,000 auto loan in July 2023. A representative told her the loan was approved. However, on July 19, she was sent a letter by the credit union denying her application because of her status. After Peraza complained, she was sent a second letter explaining that the credit union did “not grant credit to any applicants on the terms and conditions” she requested.
The lawsuit filed in the Superior Court of the State of California, County of Fresno, challenged Noble’s policy as a violation of California’s Unruh Civil Rights Act. The Unruh Act prohibits discrimination based on race, sex, color, religion, ancestry, national origin, citizenship, age, immigration status and other characteristics.
“Although various class members were all affected by the same discriminatory situation, it looks like we are headed in the right direction,” said Peraza. “If something never seems right it is always best to challenge that policy.”
Since 2017, MALDEF has filed 15 lawsuits challenging the policies of financial institutions that discriminate against DACA recipients.