Filed Date: Jan. 5, 2024
Case Ongoing
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This is a case about whether a California-based credit union illegally discriminated against loan or credit product applicants on the basis of immigration status. On January 5, 2024, a Deferred Action for Childhood Arrivals (DACA) recipient residing in California brought a putative class action lawsuit against Noble Credit Union (“Noble”) in the Superior Court of California, County of Fresno. The plaintiff brought her suit under California’s Civil Rights Act (California Civil Code §§ 51, et seq.), which forbids discrimination on the basis of immigration status. The case was assigned to Judge Kristi Culver Kapetan.
As a DACA recipient, the plaintiff was authorized to work in the United States and had a Social Security Number. In her complaint, the plaintiff alleged that after she had applied for an auto loan from defendant on July 13, 2023, a Noble consumer loan originator representative informed her that her application was approved. On July 14, 2023, Noble sent the plaintiff an offer letter for the loan, which the plaintiff accepted. However, on July 19, 2023, defendant reversed course and informed the plaintiff that her loan was denied because her driver’s license stated that it was for “limited-term.” Later, in a letter sent to the plaintiff on September 7, 2023, defendant stated that it “[does] not grant credit to any applicants on the terms and conditions you requested.” The plaintiff then applied and received a loan from another bank, but with a higher interest rate.
The plaintiff maintained that defendant had denied her loan application on the basis of her immigration status, and that the institution’s banking policies and practices generally discriminated on the basis of immigration status. The plaintiff defined the proposed class as “[p]ersons with Social Security Numbers who attempted to apply for a loan or credit product from Noble Credit Union but were denied full and equal consideration by defendant based on their alienage or immigration status.” Represented by the Mexican American Legal Defense and Educational Fund, the plaintiff, on behalf of the proposed class, sought injunctive relief to stop the alleged discriminatory policies and practices, statutory and compensatory damages, declaratory relief, and the payment of attorneys’ fees.
From January to March 2024, the parties agreed twice to extend the deadline for defendant to file its response to the complaint. On March 18, 2024, the parties stated that were "engaged in preliminary discussions to potentially resolve this action.” Judge Kapetan scheduled a case management conference for May 1, 2024.
On August 23, 2024, Judge Kapetan granted preliminary approval to the settlement. As a part of the settlement, defendant agreed to create a settlement fund of $159,000 (not including administration costs or attorneys’ fees) to compensate the class of immigrants affected by the previous practice.
Summary Authors
Muiz Wani (4/9/2024)
Madilynn O'Hara (8/27/2024)
Lozada, Luis Leonardo (California)
Richter, Stuart M. (California)
Last updated April 9, 2024, 1:10 p.m.
State / Territory: California
Case Type(s):
Fair Housing/Lending/Insurance
Key Dates
Filing Date: Jan. 5, 2024
Case Ongoing: Yes
Plaintiffs
Plaintiff Description:
Persons with Social Security Numbers who attempted to apply for a loan or credit product from Noble Credit Union but were denied full and equal consideration by Noble based on their alienage or immigration status.
Plaintiff Type(s):
Attorney Organizations:
Public Interest Lawyer: Yes
Filed Pro Se: No
Class Action Sought: Yes
Class Action Outcome: Pending
Defendants
Noble Credit Union (Fresno, Fresno), Private Entity/Person
Defendant Type(s):
Case Details
Causes of Action:
Available Documents:
Outcome
Prevailing Party: None Yet / None
Nature of Relief:
Source of Relief:
Issues
General/Misc.:
Discrimination Area:
Discrimination Basis:
Immigration/Border: