PASCO, Wash.– A Latino civil rights organization is challenging, for a second time, the discriminatory policies of a Spokane, Washington-based credit union for unlawfully denying DACA recipients financial services based on their citizenship or immigration status.
MALDEF (Mexican American Legal Defense and Educational Fund) and Edwardo Morfin, of the Kennewick-based Morfin Law Firm, filed a lawsuit in state court against Spokane Teachers Credit Union (STCU) on behalf of Ana Ayala, 28, a recipient of Deferred Action for Childhood Arrivals (DACA). The lawsuit argues that the credit union’s policy violates Washington state civil rights law prohibiting discrimination based on citizenship or immigration status. In 2023, MALDEF filed a challenge to STCU’s policy in federal court, claiming it violated federal and state civil rights law. However, a U.S. District Judge dismissed the federal claim and the case against the credit union. However, the district court did not rule on the state civil rights law claim. A year later, the U.S. Court of Appeals for the Ninth Circuit upheld the district court’s decision. This time, attorneys argue that the credit union’s policy violates the Washington Law Against Discrimination (WLAD), which bars discrimination based on sex, race, color, citizenship, and immigration status.
“Institutions don’t get a pass for violating anti-discrimination law when they make it so clear that they discriminate that no one actually follows through on applying,” said Thomas A. Saenz, MALDEF president and general counsel. “Clearly discriminatory policies violate the law, full stop; we believe that courts will understand that state law bars discrimination, with no immunity for discrimination so notorious that targets of the discrimination refuse to apply.”
In August 2023, Ayala purchased a used car from a dealership. Some weeks later, the car dealership attempted to sell the loan to STCU. The dealership told Ayala that STCU requested additional information and documentation, including her Social Security number. As a DACA recipient, Ayala is authorized to work in the U.S. and has a work-only Social Security number. The dealership later informed Ayala that STCU had refused the loan due to her DACA status.
Internal communications between the dealer and STCU confirmed that the credit union received Ayala’s social security information but opted to deny the loan nevertheless, requiring proof of permanent residency or citizenship, according to the lawsuit. A letter sent to Ayala by STCU also stated that the reason for denying the loan was “incomplete identity information.” Another credit union purchased Ayala’s loan at a higher interest rate.
“Regardless of where or how the loan originated, STCU discriminated against Ayala when it categorically refused to consider accepting the loan because of her work-only Social Security number,” said Luis Lozada, MALDEF staff attorney. “Allowing this behavior will allow financial institutions to engage in discrimination and avoid liability by arguing that an applicant was never denied credit.”
STCU is a member-owned credit union that serves the state of Washington and North Idaho. Founded in 1934, the credit union serves over 274,000 members across 38 locations.
The lawsuit was filed in the Superior Court of Washington in Franklin County and seeks class certification.
“Just because this doesn’t seem to be a big deal to STCU, it’s a huge deal for people like me,” said Ayala. “I am here doing everything I can to make sure I’m perfect in the eyes of the law, and I still get discriminated against. I’m human and should be treated equally as everyone else. This is bigger than me not being approved for a car loan; this is about not discriminating against anyone, no matter your status. I hope STCU can find it in themselves to give people like me a chance, especially when we try our hardest to be perfect for this society.”
This is the 24th lawsuit filed by MALDEF since 2017 that challenges the policies of financial institutions that discriminate against DACA recipients.
Read the complaint HERE.