LOS ANGELES –Another credit union has been hit by a lawsuit by a DACA (Deferred Action for Childhood Arrivals) recipient that alleges bias based on her immigration status.
MALDEF (Mexican American Legal Defense and Educational Fund) has filed the federal suit challenging the lending policies of the $1.14-billion University Credit Union (UCU) in Los Angeles with Saray Ortiz, 39, of Los Angeles, the plaintiff.
As CUToday.info has reported, that organization has filed a number of similar lawsuits against credit unions in the past.
Ortiz is alleging University Credit Union discriminated against Ortiz when it denied her an auto loan because she obtained her Social Security card through DACA. MALDEF’s attorneys allege UCU’s policy violated Section 1981 of the federal Civil Rights Act of 1866 and the California Unruh Civil Rights Act, which together prohibit discrimination based on citizenship and immigration status.
“UCU communicated to Ortiz, on more than one occasion, that it had approved the loan,” Luis Lozada, a staff attorney with MALDEF, said in a statement. “However, when Ortiz provided her Employment Authorization card, UCU reversed its approval and denied the loan, demonstrating that UCU made the conscious decision to deny her because of her DACA status.”
According to MALDEF, on Feb. 14, 2024, Ortiz obtained a checking account and membership with UCU through her employer.
Loan Approved, Not Approved
“The following day, she applied online for an auto loan,” the organization said. “A credit union representative phoned Ortiz that same day to get her driver’s license number and expiration date, information on her employment, and her Social Security number. After the call, Ortiz received an email telling her the loan was approved for $18,000. As a DACA recipient, Ortiz has a Social Security number authorizing her to work.
“Despite initial approval, Ortiz received an email a day later asking her to provide her DACA Employment Authorization Document,” MALDEF continued in its statement. “Ortiz provided the information requested. She then received an email telling her that the loan was not approved. UCU then sent Ortiz an ‘Adverse Action Notice’ confirming that credit would not be extended on the terms she requested.”
MALDEF said Ortiz eventually bought a car but at a “substantially higher rate of interest” than if she had received the loan from UCU.
‘Stark Reminder’
“Receiving approval for a car loan, only to later be informed that it was withdrawn, was a stark reminder of the ongoing challenges immigrants endure in this country,” Ortiz said in a statement provided by MALDEF. “I experienced discrimination and unfair treatment during the loan process because of my DACA status. Credit discrimination restricts access to opportunities and impedes wealth advancement, underscoring the crucial need for lenders to adopt fair, equitable, and non-discriminatory practices.”
14th Lawsuit Filed
This lawsuit was filed in the U.S. District Court in the Central District of California and seeks class certification. MALDEF said it is the 14th lawsuit filed by the organization since 2017 challenging the policies of financial institutions that discriminate against DACA recipients.
The full complaint can be read here.