LOS ANGELES – A federal judge granted final approval Thursday of a class-action settlement between First Tech Credit Union and recipients of Deferred Action for Childhood Arrivals (DACA) and other immigrants who were denied full consideration for credit because of their immigration status.
MALDEF (Mexican American Legal Defense and Educational Fund) represents DACA recipients and other immigrants who comprise the settlement class. The settlement is one of nearly a dozen MALDEF has reached with financial institutions that have been sued for denying services to DACA recipients and other immigrants based on their immigration status. Since 2017, MALDEF has filed 19 lawsuits challenging the policies of financial institutions that are alleged to discriminate against DACA recipients and other immigrants.
“Regardless of the biased rhetoric streaming from the new administration, the law protects immigrants from discrimination,” said Thomas A. Saenz, MALDEF president and General Counsel. “When a credit union like First Tech recognizes that it should provide immigrants’ access to critical financial products, our economy and society are improved.”
As part of the agreement, First Tech has created a settlement fund of $81,500 to compensate the class of immigrants affected by the challenged practice. The agreement, which received preliminary approval in October, also includes a change in First Tech’s policy.
“DACA recipients across the country play an important role in propelling our nation forward,” said Eduardo Casas, MALDEF attorney. “Perez, for example, is a scientist and engineer who works in the area of battery research and technology. He may one day make a discovery that fundamentally changes our understanding of battery technology. We are pleased that people like him will have greater access to financial products thereby making upward mobility and financial well-being more accessible.”
MALDEF filed the suit in 2023 on behalf of Ismael Rodriguez Perez, a recipient of DACA. Perez was initially approved for a Home Equity Line of Credit (HELOC), but later learned he was denied the loan because he was not a permanent resident. Attorneys argued that First Tech’s policy was a violation of Section 1981 of the federal Civil Rights Act of 1866 and of California’s Unruh Civil Rights Act, which prohibit discrimination in certain consumer matters. The lawsuit was filed in the U.S. District Court for the Northern District of California.
“The final approval of the settlement has brought me a sense of justice,” said Perez. “Knowing that those who were also impacted are receiving part of this settlement gives me hope that they recognize someone is standing up for them. I am incredibly grateful for all the support I received from MALDEF in making this possible. It’s inspiring and empowering to know that there are still people dedicated to helping our cause as immigrants. I will continue to stand against injustice, and with individuals like them by my side, I feel empowered to keep fighting.”
First Tech Federal Credit Union is an Oregon-based member-owned credit union that manages $17 billion in assets. It serves nearly 650,000 members.
Read the judge’s order HERE.