PHOENIX — OneAZ Credit Union has agreed to pay $100,000 and change its lending practices to settle a class-action lawsuit alleging it denied financial products to some non-U.S. citizens based on their immigration status.
U.S. District Judge Sharad Desai on Sept. 9 granted preliminary approval to the settlement, which would provide nearly $2,000 each to 32 people identified in OneAZ records as having been denied full and equal consideration for financial products or services because of their alienage or immigration status.
The settlement still requires final court approval, with a fairness hearing scheduled for Jan. 7, 2027.
The lawsuit was brought by Deyra Pamela Carranza Aguilar, a Phoenix resident who has been a recipient of Deferred Action for Childhood Arrivals, or DACA, since 2015.
Basis for Case
According to court filings, Carranza Aguilar approached OneAZ in March 2022 about refinancing an automobile loan as she and her family prepared to move to Flagstaff, where they expected higher living expenses.
The lawsuit alleges she was turned away because OneAZ’s processing systems at the time did not accept applications from DACA recipients. Carranza Aguilar is authorized to work in the United States and has a Social Security number designated for work purposes, according to the filing.
She filed the proposed class action in October 2024, alleging OneAZ discriminated against applicants based on alienage or immigration status in violation of Section 1981 of the Civil Rights Act of 1866.
32 People to Receive Payments
Under the settlement, OneAZ will pay a total of $100,000.
Of that amount, $63,500.16 will go to a settlement fund for the 32 class members. Each would receive $1,984.38 without having to submit a claim form or documentation. Checks will be mailed to their last known addresses.
The remaining $36,499.84 would cover attorneys’ fees and costs of up to $24,999.84, settlement administration expenses estimated at $6,500 and a service award of up to $5,000 for Carranza Aguilar, subject to court approval.
Any settlement checks that remain uncashed after 150 days would not revert to OneAZ. Instead, the money would be divided between TheDream.US, which provides college scholarships and other assistance to undocumented immigrants, and the Florence Immigrant & Refugee Rights Project, which provides legal and social services to immigrant communities in Arizona.
OneAZ Agrees to Change Practices
The settlement also requires changes in OneAZ’s practices.
OneAZ has represented that it has already stopped the practice challenged in the lawsuit and agreed it will not deny financial products, services or consumer credit products to otherwise qualified applicants solely because of alienage or immigration status, unless required by applicable law or regulation.
That commitment also applies when an applicant provides an Individual Taxpayer Identification Number, or ITIN, or a Social Security number marked “For Work Purposes Only.”
OneAZ also agreed to revise its underwriting criteria and train managers, supervisors and employees on the changes.
The settlement class covers people who, on or before Jan. 26, 2024, lived in the United States when they applied or attempted to apply for a OneAZ financial product or service but were denied full and equal consideration based on alienage or immigration status.
Judge Grants Preliminary Approval
The parties reached an agreement in principle in 2025 following negotiations that included exchanges of information about credit applications, loan records, OneAZ’s membership base and its policies and procedures.
Carranza Aguilar asked the court July 15 to approve the settlement, and OneAZ did not oppose the request.
Desai held a hearing Aug. 25 before issuing his preliminary approval order Sept. 9.
The judge noted that the proposed attorneys’ fee arrangement raised a potential concern because OneAZ agreed not to challenge fees of up to $24,999.84. But Desai concluded the amount was relatively small compared with the overall settlement and that the record did not indicate class counsel had allowed its financial interests to affect the negotiations.
Additional Findings
The judge also found the proposed $5,000 service payment to Carranza Aguilar was reasonable in light of her work representing the class.
The court stressed that preliminary approval does not constitute a determination on the merits of the allegations and that neither the settlement nor the approval order represents an admission of liability or wrongdoing by OneAZ.
Class members are scheduled to receive notice of the settlement by Oct. 9 and will have until Dec. 8 to object or opt out. Motions seeking final approval and approval of attorneys’ fees, costs and the service award are due Nov. 8.
