MALDEF sues over discriminatory policy in class-action lawsuit

t union from granting loans to anyone who is not a U.S. citizen or a lawful permanent resident.

The lawsuit, filed in U.S. District Court for the Northern District of Georgia, argues that CUGA’s policy is in violation of Section 1981 of the federal Civil Rights Act of 1866. The legal team representing Pimentel and MALDEF contends that denying financial services based on citizenship status is discriminatory and goes against the core principles of capitalism. Every individual should have the opportunity to demonstrate their creditworthiness without being turned away solely because they are not a U.S. citizen or green card holder.

CUGA, a credit union with $6.3 million in assets, offers various financial products, including savings, mortgages, student loans, personal loans, and auto loans. The change in the credit union’s policy in January 2024 to exclude non-citizens from loan eligibility prompted this class-action lawsuit. MALDEF has a history of challenging discriminatory policies against immigrants and has filed 22 lawsuits since 2017 against financial institutions engaging in similar practices.

The case of Carmen Belem Pimentel Alcocer highlights the impact of such discriminatory policies on individuals seeking financial assistance. Pimentel, a DACA recipient authorized to work in the U.S., was denied a loan by CUGA based solely on her immigration status, despite having previously received an auto loan from the credit union in 2022. After applying for another auto loan in May 2024, she was informed by a credit union representative that she was ineligible for the loan because she was not a U.S. citizen or a lawful permanent resident with a green card. This denial of banking services solely on the grounds of immigration status not only violates federal civil rights laws but also reflects poorly on the credit union’s business practices.

By filing this class-action lawsuit, MALDEF aims to challenge and rectify the discriminatory policy of CUGA and ensure that financial institutions do not discriminate against individuals based on their citizenship status. The lawsuit asserts that all customers, regardless of their immigration status, should have the opportunity to prove their creditworthiness and receive fair consideration for banking products and services.

It is crucial to address and eliminate such discriminatory practices to uphold the principles of equality and fairness in the financial sector. By holding institutions like CUGA accountable for their discriminatory policies, MALDEF continues its fight for the civil rights of immigrants and challenges unjust practices that undermine the financial well-being of individuals like Carmen Belem Pimentel Alcocer.