SAN JOSE, Calif.–A settlement has been reached between a credit union and a group of members who alleged bias against people who have Deferred Action for Childhood Arrivals (DACA) status.
The DACA plaintiffs, sometimes known as “Dreamers,” have “work only” Social Security numbers, with the lead plaintiff, Yuliana Camacho, alleging she applied for a loan in October of 2021 with Chicago-based Alliant Credit Union. Camacho said she was asked to upload I-797 and I-94 forms if she was a visa-holder, a permanent resident card, or a naturalization certificate.
‘Residency Status’ Cited
According to the suit, filed in United States District Court for the Northern District of California, San Jose Division, Camacho said she did not have such documents, as she is a DACA recipient, and the credit union denied her application and further sent an adverse action notice indicating her “residency status” was the principal reason for the denial.
Along with the Mexican American Legal Defense and Educational Fund, Camacho filed the class action suit alleging violations of the Civil Rights Act of 1966 and several California laws.
The court earlier ruled against a motion by Alliant Credit Union to dismiss the lawsuit.
According to the terms of the settlement reviewed by CUToday.info, there are 95 proposed members of the Settlement Class who will divide a Settlement Fund of $86,750 ($2,500 per California class member; $250 per national class member).
Alliant is also to pay attorneys’ fees up to $50,000.
CU to Change Policies
In addition to monetary relief, the settlement says Alliant has also agreed to update its underwriting policies as appropriate so that applicants are not denied credit based on immigration status.
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