LAS VEGAS – A federal judge has granted preliminary approval of a class-action settlement between One Nevada 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.
“All immigrants have legal rights; one of these is to be free of irrational discrimination,” said Thomas A. Saenz, MALDEF president and general counsel. “This settlement provides one more reason for all businesses to comply with the law and treat all immigrants fairly, on a par with citizens.”
As part of the agreement, approved on Feb. 11, One Nevada has agreed to create a settlement fund of $76,000 to compensate the class of immigrants affected by the challenged policy. One Nevada will also change its policies and bring the credit union into compliance with state law as part of the agreement. The settlement is one of more than a dozen MALDEF has reached with financial institutions that deny services to DACA recipients and other immigrants because of their immigration status rather than their credit-worthiness.
The settlement provides for $2,000 payments each to 38 class members. All of the class members are residents of Nevada. The credit union must also pay attorneys’ fees and other costs.
“There are an estimated 11,000 DACA recipients who call Nevada home,” said Eduardo Casas, MALDEF attorney. “This decision gets them all one step closer to full and equal participation in consumer credit markets.”
MALDEF and co-counsel, Kathia Quiros from GWP Immigration Law, filed the suit in September 2022 on behalf of Jorge Hernandez Castro, a DACA recipient. Hernandez 32, of Las Vegas, applied to One Nevada for an auto loan in July 2022. According to the lawsuit, One Nevada denied the loan to Hernandez because the social security card he obtained through DACA was for “work only” and because he was not a lawful permanent resident. Attorneys argued that One Nevada’s denial of a loan to Hernandez violated Section 1981 of the federal Civil Rights Act of 1866 which prohibits discrimination based on national origin, citizenship, and immigration status. The lawsuit was filed in U.S. District Court for the District of Nevada. The court has set a final–approval hearing date of May 28.
One Nevada is a member-owned credit union based in Las Vegas. It provides banking services, auto loans, mortgages, home equity loans, personal loans, and investment services.
Since 2017, MALDEF has filed 20 lawsuits challenging the policies of financial institutions that discriminate against immigrants.