CHICAGO – A Latino civil rights organization is challenging a Michigan credit union’s denial of credit to a woman because she is not a United States citizen, according to papers filed in federal court Tuesday.
MALDEF (Mexican American Legal Defense and Educational Fund) filed the lawsuit on behalf of Rebecca Parejo-Yepez, 35, of Madison Heights, Michigan. According to attorneys, Community Choice Credit Union (CCCU) denied Parejo-Yepez a credit card and personal loan, and told her she could not apply for a home-improvement loan because of the expiration date on her Green Card. Parejo-Yepez is Canadian citizen of Ethiopian origin who became a conditional permanent resident in November 2023.
“Immigration law is complex, and here the credit union had a very basic misunderstanding of conditional permanent resident status,” said Thomas A. Saenz, MALDEF president and general counsel. “Far better for the community and for the credit union itself, to not engage in any discrimination on the basis of immigration status; that is certainly what the law mandates.”
Attorneys argue that CCCU’s actions are a violation of Section 1981 of the federal Civil Rights Act of 1866, which prohibits discrimination based on alienage. In the U.S., it is unlawful for financial institutions to base decisions about granting loans or other financial products solely on an applicant’s immigration status.
“CCCU’s arbitrary denials of credit to Ms. Parejo-Yepez demonstrate the irrationality of immigration-status based discrimination,” said MALDEF attorney Olivia Alden. “Ms. Parejo-Yepez did everything right in her journey to lawful permanent residency, yet was repeatedly denied access to CCCU’s financial products because she was not a U.S. citizen. With the new administration’s violent rhetoric towards the immigrant community, it is more important than ever to aggressively challenge unlawful alienage discrimination.”
Parejo-Yepez opened a membership and checking account with CCCU in January 2024. Parejo-Yepez advised that she was a recent immigrant and looking to build credit in the U.S. She was able to open the membership and checking account without incident. However, in April, she was denied a credit card because she is a conditional permanent resident. A CCCU representative told Parejo-Yepez that she could get a credit card with CCCU if she “gained citizenship” or could provide a Michigan driver’s license. After Parejo-Yepez provided a Michigan driver’s license the representative clarified in an email that she would need a U.S. passport or certificate of naturalization to obtain an unsecured credit card with CCCU.
That same month, Parejo-Yepez inquired about obtaining a Home Equity Line of Credit (HELOC). CCCU’s representative informed Parejo-Yepez she could not apply for a HELOC because of the expiration date on her Green Card. The representative advised Parejo-Yepez that to become eligible for a HELOC, she would either need to “A] get a permanent resident card that has a further out expiration date… or B] gain citizenship and provide … proof of that.” Finally, another CCCU representative advised Parejo-Yepez she was eligible for a personal loan, and Parejo-Yepez applied. However, CCCU again denied her application because of their belief that permanent resident cards, or Green Cards, “can be revoked.”
“When I moved to the United States, I understood that part of that experience would include finding new employment, obtaining new identification, and opening new bank accounts. When attempting to establish credit with a local credit union, I was met with road blocks at every turn because of my immigration status,” said Parejo-Yepez. “Just because something is a ‘policy’ doesn’t make it right or less discriminatory. I hope that this case will help to rectify these policies and give the next person who wants nothing more than to establish themselves in their new home an equal opportunity to do so.”
The lawsuit, filed in the U.S. District Court for the Eastern District of Michigan, seeks class certification.
CCCU is a federally insured, member-owned credit union headquartered in Farmington Hills, Michigan. CCCU has 20 locations throughout the state and manages over $1.5 billion in assets.
Since 2017, MALDEF has filed 20 lawsuits challenging the policies of financial institutions that discriminate against immigrants.
Read the complaint HERE.