WASHINGTON, D.C. – A Latino civil rights organization is suing a Georgia credit union for unlawfully denying consideration for credit to recipients of Deferred Action for Childhood Arrivals (DACA) and other immigrants solely because of their status and not their ability to repay, according to papers filed in federal court on Thursday.
MALDEF (Mexican American Legal Defense and Educational Fund) and Eshman Begnaud, LLC, filed the class-action lawsuit on behalf of Carmen Belem Pimentel Alcocer of Cherokee County, Georgia. According to the complaint, Pimentel, a DACA recipient, was denied a loan by the Credit Union of Georgia (CUGA) because she is not a U.S. citizen or a lawful permanent resident. The case argues that CUGA’s policy of denying financial services and credit to non-citizens is a violation of federal civil rights law prohibiting discrimination based on a person’s citizenship status.
“It is irrational and contrary to capitalist principles to deny a loan on any basis other than credit-worthiness,” said Thomas A. Saenz, MALDEF president and general counsel. “Discrimination against DACA recipients — denying any consideration of individual circumstances – must end.”
Pimentel joined the credit union in 2021, and in 2022 she obtained an auto loan from CUGA. In May 2024, Pimentel applied to CUGA for another auto loan. The application included a question about citizenship. Pimentel indicated that she is not a U.S. citizen. Shortly after submitting her application online, a representative from the credit union called Pimentel and asked if she had a “green card.” Pimentel told the representative that she was a DACA recipient. As a DACA recipient, Pimentel is authorized to work in the U.S. and has a social security card. The credit union representative told Pimentel that because she was not a U.S. citizen or a lawful permanent resident with a green card, she was not eligible for a loan under CUGA’s policies.
“Denying banking services, like loans, to customers solely based on their immigration status is not only discriminatory, it is bad business,” said Andrea Senteno, MALDEF Washington D.C. regional counsel. “Every customer should have the opportunity to demonstrate their overall creditworthiness, without being categorically barred from banking products just because they aren’t a U.S. citizen or green card holder.”
According to the filed complaint, the credit union changed its internal policies in January 2024 to bar the credit union from granting loans to anyone who is not a U.S. citizen or a lawful permanent resident.
In the complaint, filed in U.S. District Court for the Northern District of Georgia, attorneys argue that CUGA’s policy violates Section 1981 of the federal Civil Rights Act of 1866.
CUGA is a member-owned credit union with $6.3 million in assets. It offers a range of financial and credit products, including savings, mortgages, student loans, personal loans, and auto loans.
Since 2017, MALDEF has filed 22 lawsuits challenging the policies of financial institutions that discriminate against immigrants.
Read the complaint HERE.