LAS VEGAS – A federal judge has granted final approval of a class-action settlement between One Nevada Credit Union and recipients of Deferred Action for Childhood Arrivals (DACA) and other immigrants who were denied full consideration for credit because of their immigration status.
MALDEF (Mexican American Legal Defense and Educational Fund) represents DACA recipients and other immigrants who comprise the settlement class.
“While MALDEF is gratified that class members will receive some recompense for experiencing the sting of unlawful discrimination, we are even more pleased that the defendant has changed its practices,” said Thomas A. Saenz, MALDEF president and general counsel. “Credit unions developed to expand access to financial services, so irrational discrimination should never be a part of credit-union practices.”
As part of the agreement, preliminarily approved on February 11, One Nevada has agreed to create a settlement fund of $76,000 to compensate the class of immigrants affected by the challenged policy. One Nevada will also change its policies to permit those with valid “For Work Only” social security numbers to apply for membership and financial products as well as bring the credit union into compliance with all record-keeping requirements under state law. The settlement is one of more than a dozen MALDEF has reached with financial institutions that deny services to DACA recipients and other immigrants because of their immigration status rather than their credit-worthiness.
The settlement provides for $2,000 payments each to 38 class members. All of the class members are residents of Nevada. The credit union must also pay attorneys’ fees and other costs.
“One Nevada is among the largest credit unions in Nevada,” said Eduardo Casas, MALDEF attorney. “We are pleased that this settlement will open its doors to DACA recipients and other immigrants so that they can be assessed for credit worthiness like anyone else.”
MALDEF and co-counsel, Kathia Quiros from GWP Immigration Law, filed the suit in September 2022 on behalf of Jorge Hernandez Castro, a DACA recipient. Hernandez, 32, of Las Vegas, applied to One Nevada for an auto loan in July 2022. According to the lawsuit, One Nevada denied the loan to Hernandez because the social security card he obtained through DACA was for “work only” and because he was not a lawful permanent resident. Attorneys argued that One Nevada’s denial of a loan to Hernandez violated Section 1981 of the federal Civil Rights Act of 1866, which prohibits discrimination based on citizenship or immigration status. The lawsuit was filed in U.S. District Court for the District of Nevada.
“This settlement marks a meaningful step forward for our community, bringing much-needed accountability and renewed hope for lasting change,” said Hernandez. “I’m deeply grateful to MALDEF for their unwavering support, their service, and steadfast commitment to defending our rights. And let this stand as a powerful reminder: we must not remain silent in the face of injustice, but instead stand together, raise our voices, and continue the fight for a more just and equitable future for all.”
One Nevada is a member-owned credit union based in Las Vegas. It provides banking services, auto loans, mortgages, home equity loans, personal loans, and investment services.
Since 2017, MALDEF has filed 22 lawsuits challenging the policies of financial institutions that discriminate against immigrants.