LOS ANGELES – A federal judge has granted final approval of a class-action settlement between Alliant Credit Union in Chicago and a group of immigrants who had alleged they were denied credit because of their immigration status.
The suit was brough by MALDEF (Mexican American Legal Defense and Educational Fund), which represents DACA (Deferred Action for Childhood Arrivals) recipients and other immigrants who comprise the settlement class and which has represented the so called “Dreamers” in other actions against credit unions.
As part of the agreement, MALDEF said Alliant Credit Union will change its policies and establish a settlement fund of $86,750 to be paid to class members.
One of Numerous Settlements
“The settlement is one of several MALDEF has reached with financial institutions that deny services to DACA recipients and other immigrants based on their status rather than credit-worthiness,” the organization said.
The settlement provides that California class members will receive $2,500 each, while national class members will receive $250 each. The credit union must also pay attorney’s fees and other costs.
“After more than two years since the complaint was filed, the plaintiffs and class members will receive substantial relief achieved through settlement with Alliant,” MALDEF Staff Attorney Luis Lozadas said in a statement. “More important are the policy changes that will allow DACA recipients and other immigrants access to the same financial products and credit based on their ability to repay like anyone else.”
The Original Claim
As reported earlier, MALDEF filed suit in 2022 on behalf of Yuliana Camacho, 29, of Salinas, Calif., who had applied to Alliant for an auto loan but was told that she was ineligible because she was a recipient of DACA and not a citizen or legal permanent resident of the United States.
Another plaintiff, Joshua Soto Lopez, 28, of Visalia, California, joined the lawsuit in 2024 as a national class representative. The suit alleged he was denied a home equity line of credit because of his DACA status.
15 Suits Filed
Since 2017, MALDEF said it has filed 15 lawsuits challenging the policies of financial institutions that discriminate against DACA recipients.
The final approval order can be found here.