EL PASO, Texas – A Latino civil rights organization that has targeted other credit unions has filed a class-action lawsuit against GECU FCU alleging the credit union unlawfully refused to consider loans and financial services to certain immigrants because of their immigration status rather than credit-worthiness.
The litigation was filed by Los Angeles-based MALDEF (Mexican American Legal Defense and Educational Fund) and Arizona attorney Daniel Ortega of Ortega Law Firm on behalf of Carlos Barraza Trevino, who has Deferred Action for Childhood Arrivals (DACA) status.
In a statement, MALDEF is alleging the $4.3-billion GECU refused Barraza Trevino an auto loan because he is not a United States citizen or a legal permanent resident. According to the complaint, GECU’s denial of Barraza Trevino’s application violates Section 1981 of the federal Civil Rights Act of 1866, which prohibits discrimination based on citizenship or alienage.
“Discrimination against immigrants harms our economy; the anti-immigrant views of the current president do not change that social-scientific fact,” Thomas A. Saenz, MALDEF president and general counsel, said in a statement. “That is why federal law prohibits this type of irrational discrimination; credit unions in particular should cease treating members of their community unequally.”
According to the complaint, in May 2024, Barraza Trevino applied for an auto loan from the credit union but was denied.
‘Adverse Action’
“He called GECU to inquire about the reason for the denial; he was told it was because his Social Security number is solely for work purposes and because of his ‘legal status’,” MALDEF said in its statement. “Soon after, he received an ‘adverse action’ letter indicating that one reason he was not eligible to receive a loan was ‘temporary residence’.”
Added Luis Lozada, a staff attorney with MALDEF, in the statement, “Access to credit, including auto loans, is vital for DACA recipients to better their lives. GECU’s explicit denial based on residency showcases that, rather than reviewing Barraza Trevino’s application, it made the discriminatory determination that work-only Social Security numbers are inferior and deficient compared to non-work-only Social Security numbers held by U.S. citizens.”
‘Feels Like a Betrayal’
The lawsuit, filed in the Phoenix Division of the U.S. District Court for the District of Arizona, seeks class certification.
“I was excited to contribute when I opened my first bank account with GECU as a DACA recipient. This denial feels like a betrayal,” Barraza Trevino said in a statement distributed by MALDEF. “Immigrants deserve fair access to financial services based on our creditworthiness, not discrimination based on where we were born. We are the backbone of the U.S. economy. We work hard, pay taxes, and contribute to society in countless ways. I hope this case will inspire others to speak up and demand the fair treatment they deserve.”
21st Suit Filed
MALDEF said the litigation marks the 21st lawsuit it has filed since 2017 challenging the policies of financial institutions that discriminate against DACA recipients and other immigrants.
MALDEF has also filed similar lawsuits against Florida Credit Union, Community Choice Credit Union, University Credit Union and others.