NEW YORK — The Mexican American Legal Defense and Educational Fund (MALDEF) has filed a class-action lawsuit against Municipal Credit Union that alleges loan denials to recipients of Deferred Action for Childhood Arrivals (DACA) and other immigrants solely because of their citizenship status.
MALDEF, which has filed similar lawsuits against other credit unions and 23 such lawsuits against financial institutions since 2017, filed the lawsuit on behalf of Jose Uri Perez Fernandez, a Brooklyn resident and DACA recipient.
According to the complaint, the $4.6-billion 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, the complaint alleges.
‘Discrimination is Irrational’
“A financial system that is open to all residents on equal terms is essential to a thriving U.S. economy,” MALDEF President and General Counsel Thomas A. Saenz said in a statement. “Discrimination against immigrants is irrational, and it remains unlawful despite the execrable rhetoric of the current president and his administration.”
According to MALDEF, Perez has maintained a valid work authorization and a Social Security number since receiving DACA in 2014, and had a 750 credit score when he applied for the loan in July 2023.
The complaint further 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, MALDEF said.
‘No Place in Society’
“Lending decisions that discriminate against lenders based solely on their immigration status have no place in business or our society,” Andrea Senteno, MALDEF Washington, D.C., regional counsel, said in a statement. “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.”
According to MALDEF, 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.
‘Slammed Shut’
“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,” Perez said in a statement. “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.”
