ATLANTA–Another lawsuit has been filed against a credit union that denied a car loan based on the applicant’s resident status in the U.S.

The case, filed in the United States District Court for the Northern District of Georgia, was filed against Credit Union of Georgia, and has the backing of the Mexican American Lega Defense and Educational Fund (MALDEF), which has backed numerous similar suits against credit unions that have made similar allegations. 

Again, the case involves a plaintiff, Carmen Belem Pimentel Alcocer, who has Deferred Action for Childhood Arrivals (DACA) status (sometimes referred to as “Dreamers”). 

‘Denying Full Access’

The suit alleges Credit Union of Georgia engaged in “a policy of denying full access to financial products to applicants who are not United States citizens or lawful permanent residents.”

Similar to the other suits, the complaint alleges Credit Union of Georgia’s policy is in violation of federal civil rights law that  bars discrimination based on race, ethnicity or color when making or enforcing contracts.

According to the suit, the plaintiff is a DACA recipient and has been in the U.S. since 1999 when she arrived from Mexico at the age of nine.  Pimentel reportedly has a Social Security and is authorized to work in the U.S. Pimentel Alcocer applied for the car loan in May of 2024.

Additional Allegations

The suit alleges that credit union representative inquired as to whether Pimentel Alcocer had a green card, and she responded by saying she did not but that she is a DACA recipient.

Allegedly, the credit union told  Pimentel Alcocer it had changed its policies in January 2024 to only approve loans U.S. citizens or lawful permanent residents.

As the CU Daily has reported, in nearly all the similar suits filed by MALDEF a settlement was reached. 

The lawsuit can be viewed here.