LOS ANGELES – A Latino civil rights organization has filed a federal class-action lawsuit against Nuvision Credit Union for allegedly denying loans and financial services to certain immigrants based on their immigration status instead of their ability to repay, the organization reported.
MALDEF (Mexican American Legal Defense and Educational Fund) filed the lawsuit on behalf of Luis Saul Bautista Martinez, 29, of Los Angeles.
At issue is Bautista Martinez’s application for an auto loan from the Huntington Beach, Calif.-based Nuvision, MALDEF said.
“According to the lawsuit, Nuvision denied Bautista Martinez a $35,000 auto loan, after giving preliminary approval to his application, because he is not a permanent resident of the United States. As a DACA (Deferred Action for Childhood Arrivals) recipient, Bautista Martinez is authorized to work in the U.S. and possesses a Social Security number,” MALDEF said.
“There are currently thousands of DACA recipients who have held that status for over a decade; there is simply no excuse for treating DACA recipients differently than other long-term residents, including citizens,” said Thomas A. Saenz, MALDEF president and general counsel. “Regardless of (the) election outcome, the rule prohibiting discrimination against immigrants remains the law, and MALDEF will continue to aggressively enforce that rule of law.”
The suit challenges $3.3-billion Nuvision’s denial of a loan to Bautista Martinez as a violation of Section 1981 of the federal Civil Rights Act of 1866 and of California’s Unruh Civil Rights Act, which prohibit discrimination based on race, sex, color, religion, ancestry, national origin, immigration status, age, and other characteristics, MALDEF said.
CU 'Reversed Course'
“Because Nuvision had preliminarily approved the loan, Bautista Martinez relied on Nuvision’s representation and took steps to sell his car,” said MALDEF attorney Luis Lozada. “However, despite receiving documentation, Nuvision reversed course and denied the loan solely on the basis of his temporary residency, demonstrating discriminatory intent and leaving Bautista Martinez without a vehicle.”
“Bautista Martinez applied to Nuvision for a membership and an auto loan in April 2023. That same day, he received notice from a credit union representative that his loan had been approved and asking for a paystub and a copy of his Social Security card so the loan process could move forward. Bautista Martinez complied. Since he had received approval for the loan from Nuvision, Bautista Martinez sold his car in anticipation of getting a new vehicle,” MALDEF explained.
“After not hearing anything from the Nuvision representative for a few days, he reached out to check on the status of his application. A day later, the representative asked Bautista Martinez if he had a ‘temporary resident card.’ Bautista Martinez said that he had a California REAL ID, which DACA recipients are eligible for. The representative asked if he was a temporary resident, and Bautista Martinez, who has had DACA since 2012, replied that DACA is considered temporary but explained that he renews every two years as required. He added that other loans and credit that he applied for had been approved with his DACA card. A few weeks later he received a formal denial of his loan citing his ‘temporary residence,” MALDEF explained.
DACA Status
“In July 2023, a Nuvision representative told Bautista Martinez that the loan underwriter denied his application because his Employment Authorization Card was scheduled to expire in December 2023 and asked whether he could provide proof of residency. Bautista Martinez told the representative that he had given all the relevant documentation to Nuvision and asked if he was denied the loan because of his DACA status. The representative told him that the documents he had submitted demonstrating temporary residency was the reason his loan was denied. Bautista Martinez has been without a car ever since,” MALDEF said.
“The rescinding of my loan approval due to my legal status is yet another instance of the persistent barriers individuals like myself have faced over the years,” said Bautista Martinez. “It is critical to challenge such discriminatory practices to ensure that financial institutions offer fair and equitable access to all. This case extends beyond my personal experience – it addresses the broader issue of ensuring equality in financial access for everyone.”
The lawsuit, filed in the U.S. District Court, Central District of California, Western Division, seeks class certification.