LOS ANGELES – A federal judge has granted preliminary approval of a class-action settlement between NuVision Credit Union and recipients of Deferred Action for Childhood Arrivals (DACA) and other immigrants who were denied loans and financial services based on their immigration status rather than their ability to repay.
MALDEF (Mexican American Legal Defense and Educational Fund) filed the lawsuit on behalf of Luis Saul Bautista Martinez, 29, of Los Angeles, a DACA recipient, and other immigrants who comprise the settlement class.
“Demonization of immigrants in the rhetoric of irresponsible national leaders does not justify unlawful discrimination in any area of the economy,” said Thomas A. Saenz, MALDEF president and general counsel. “The resolution of this case approved today should help to lead others engaged in discriminatory practices to cease that activity.”
As part of the agreement, preliminarily approved today, NuVision has agreed to create a settlement fund of $108,800 to compensate the class of immigrants affected by the challenged practice. NuVision has also ended the use of the challenged practice. 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 creditworthiness.
The settlement provides for $3,200 payments for each of the 34 class members. All class members are residents of California. NuVision must also pay attorneys’ fees and other costs.
“The court’s preliminary settlement approval represents a crucial step towards compensating class members and recognizing their harm,” said MALDEF attorney Luis Lozada. “Importantly, financial institutions are starting to promptly change their policies and practices, as well as resolve any lingering problems with us.”
In April 2023, Bautista Martinez applied for an auto loan from NuVision, based in Huntington Beach, California. According to the lawsuit, NuVision denied Bautista Martinez a $35,000 auto loan after giving initial approval to his application because he is not a permanent resident of the United States. As a DACA recipient, Bautista Martinez is authorized to work in the U.S. and possesses a Social Security number.
“This preliminary approval is a meaningful step toward justice, not just for me but for many others facing the same barriers,” said Bautista Martinez. “It reinforces that what happened was wrong and that financial institutions must be held accountable when they discriminate. I spoke up because I knew it wasn’t just about me, and I hope this shows others that no one should accept being denied what they’ve earned.”
The suit challenged 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.
The lawsuit was filed in the U.S. District Court, Central District of California, Western Division.
NuVision is a federally insured, member-owned credit union serving 160,000 members in Alaska, Arizona, California, Washington, and Wyoming with $3.3 billion in assets.
Since 2017, MALDEF has filed 22 lawsuits challenging the policies of financial institutions that discriminate against immigrants.