LOS ANGELES – A Latino civil rights organization filed a class-action lawsuit against a Texas credit union for unlawfully refusing to consider loans and financial services to certain immigrants because of their immigration status rather than their credit-worthiness.
MALDEF (Mexican American Legal Defense and Educational Fund) and Arizona attorney Daniel Ortega of Ortega Law Firm are challenging the policy of GECU Federal Credit Union (GECU), formerly Government Employees Credit Union, on behalf of Carlos Barraza Trevino, a recipient of Deferred Action for Childhood Arrivals (DACA). Attorneys say the credit union refused Barraza Trevino an auto loan because he is not a United States citizen or a legal permanent resident. According to the complaint, GECU’s denial of Barraza Trevino’s application violates Section 1981 of the federal Civil Rights Act of 1866, which prohibits discrimination based on citizenship or alienage
“Discrimination against immigrants harms our economy; the anti-immigrant views of the current president do not change that social-scientific fact,” said Thomas A. Saenz, MALDEF president and general counsel. “That is why federal law prohibits this type of irrational discrimination; credit unions in particular should cease treating members of their community unequally.”
In May 2024, Barraza Trevino, a member of GECU, applied for an auto loan from the credit union but was denied. He called GECU to inquire about the reason for the denial; he was told it was because his Social Security number is solely for work purposes and because of his “legal status.” Soon after, he received an “adverse action” letter indicating that one reason he was not eligible to receive a loan was “temporary residence.”
“Access to credit, including auto loans, is vital for DACA recipients to better their lives,” said MALDEF staff attorney Luis Lozada. “GECU’s explicit denial based on residency showcases that, rather than reviewing Barraza Trevino’s application, it made the discriminatory determination that work-only Social Security numbers are inferior and deficient compared to non-work-only Social Security numbers held by U.S. citizens.”
The lawsuit, filed in the Phoenix Division of the U.S. District Court for the District of Arizona, seeks class certification.
“I was excited to contribute when I opened my first bank account with GECU as a DACA recipient. This denial feels like a betrayal,” said Barraza Trevino. “Immigrants deserve fair access to financial services based on our creditworthiness, not discrimination based on where we were born. We are the backbone of the U.S. economy. We work hard, pay taxes, and contribute to society in countless ways. I hope this case will inspire others to speak up and demand the fair treatment they deserve.”
GECU, based in El Paso, is the largest credit union in Texas and has $4.4 billion in assets. It serves 431,000 members in Texas and New Mexico.
This is the 21st lawsuit filed by MALDEF since 2017 challenging the policies of financial institutions that discriminate against DACA recipients and other immigrants.
Read the complaint HERE.