NEW YORK — A Latino civil rights organization filed a class-action lawsuit against a New York-based credit union for denying access to loan products to recipients of Deferred Action for Childhood Arrivals (DACA) and other immigrants solely because of their citizenship status, according to papers filed in federal court on Friday.
MALDEF (Mexican American Legal Defense and Educational Fund) filed the lawsuit on behalf of Jose Uri Perez Fernandez, a Brooklyn resident and DACA recipient. According to the complaint, Municipal Credit Union (MCU) initially approved Perez for a five-year auto loan but later revoked the approval solely because his New York State driver’s license listed “Limited-Term,” indicating that he is not a lawful permanent resident or U.S. citizen. MCU then offered him only a two-year loan, stating it could be extended to five years if he became a lawful permanent resident.
“A financial system that is open to all residents on equal terms is essential to a thriving U.S. economy,” said Thomas A. Saenz, MALDEF president and general counsel. “Discrimination against immigrants is irrational, and it remains unlawful despite the execrable rhetoric of the current president and his administration.”
Perez, who has maintained a valid work authorization and a Social Security number since receiving DACA in 2014, had a 750 credit score when he applied for the loan in July 2023. The complaint alleges that MCU’s policy of restricting loan terms and access for non-U.S. citizens and non-lawful permanent residents violates Section 1981 of the federal Civil Rights Act of 1866 as well as the New York State Human Rights Law. The laws prohibit discrimination based on alienage, as well as citizenship and immigration status, respectively.
“Lending decisions that discriminate against lenders based solely on their immigration status have no place in business or our society,” said Andrea Senteno, MALDEF Washington, D.C., regional counsel. “These challenges to discriminatory lending practices are important because it is clear that lenders continue to penalize immigrants based on arbitrary and mistaken assumptions about the immigrant community, but every applicant deserves to be treated fairly and equally under the law.”
The lawsuit, filed in the U.S. District Court for the Southern District of New York, seeks to represent all individuals who were denied fair and equal consideration for MCU loan products because of their citizenship or immigration status. The suit asks the court to declare MCU’s practices unlawful, stop the discriminatory policy, and award damages to affected borrowers.
“As a DACA recipient, being approved for an auto loan was more than just a transaction. It was a moment of validation, a sign that my hard work and financial responsibility were finally being recognized,” said Perez. “When that approval was taken away because my ID is marked ‘Limited-Term,’ it felt like the door to opportunity was slammed shut for something beyond my control. This is not just about paperwork. It is about being told that, despite working full time, contributing to the economy, and paying higher taxes, I still do not qualify for the same opportunities others take for granted.”
Municipal Credit Union is a state-chartered credit union headquartered in New York City that offers savings, checking, and a variety of loan products to residents and workers in the New York City area.
Since 2017, MALDEF has filed 23 lawsuits challenging discriminatory banking policies that target immigrants.
Read the complaint HERE.