The U.S.-based Latino national legal and civil rights organization, MALDEF (Mexican American Legal Defense and Educational Fund), has been filing lawsuits for the past seven years against financial institutions in the country. It should be noted that the actions aim to combat discriminatory policies of these institutions against eligible beneficiaries of the DACA (Deferred Action for Childhood Arrivals) program. Among these policies are the refusal to provide loans and other services based on the applicant’s immigration status.

According to NBC News, MALDEF recently filed two lawsuits, one against Noble Credit Union “on behalf of a 28-year-old DACA recipient from California who was denied a car loan based on the credit union’s ‘limited and arbitrary immigration-status requirements’”, and another against an Oregon-based credit union, Oregon Credit Union for “unlawfully denying a home equity loan to a DACA recipient based on his immigration status”.

MALDEF had previously sued Wells Fargo in 2017,  alleging discrimination against DACA recipients, resulting in a settlement in 2020 that required the bank to pay more than $18.7 million to those affected and to change its lending policies. Other similar cases involving financial institutions have been settled in recent years.

“Since DACA started in 2012, this section of the population has contributed $108 billion to the U.S. economy, as well as $33 billion in combined taxes, according to the immigration advocacy group FWD.us”.

 MALDEF continues to pursue legal action to obtain definitive decisions on discrimination based on immigration status, arguing that federal laws are unclear in this regard.

MALDEF President Thomas Saenz highlights the importance of clarifying the long-standing policies of financial institutions, stating that the swift resolution of these cases suggests a lack of awareness at the highest levels about discriminatory practices. The Consumer Financial Protection Bureau and the Department of Justice issued a joint statement warning of possible violation of nondiscrimination laws in the credit decision process based on immigration status, according to the NBC publication.