Spokane Teachers Credit Union Unlawfully Denies Loan Applicants Based on Immigration Status, Class Action Claims

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A proposed class action alleges Spokane Teachers Credit Union (STCU) unlawfully denies consumers full and equal access to loans and credit products based on their immigration status.

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The 16-page lawsuit claims STCU, a credit union that serves members in Washington and North Idaho, has violated federal and state civil rights laws by rejecting applicants for financial products based on their alienage or immigration status.

The plaintiff, a Deferred Action for Childhood Arrivals (DACA) recipient residing in Washington, says she purchased a 2017 Buick Enclave from a used-vehicle dealership in August 2023 after she applied and was approved for a $19,800 loan from STCU. About two weeks later, the woman was informed that STCU had requested additional documentation, so she provided the defendant her work-only Social Security number card, the complaint relays.

According to the filing, a notice STCU sent to the plaintiff on September 7, 2023 stated that her loan was denied due to “incomplete identity information.” Internal communications between the dealership and the defendant reveal that STCU had received the plaintiff’s Social Security number card but required “proof of permanent residency or citizenship to proceed,” the lawsuit alleges.

In other words, STCU denied the woman’s auto loan because of her DACA status, the complaint contends.

“[The plaintiff] has never previously been denied the opportunity to apply for credit because of her immigration status,” the suit says, noting that the woman was able to receive an auto loan with a higher interest rate from a different credit union following STCU’s denial.

The case claims that the defendant’s “limited and arbitrary alienage requirements” amount to unlawful discrimination under the Civil Rights Act of 1866 and the Washington Law Against Discrimination. Such misconduct caused the plaintiff emotional distress and forced her to incur a less favorable loan than what was originally offered to her by STCU, the filing charges.

The lawsuit looks to represent anyone with a Social Security number who resided in Washington state or North Idaho when they applied for or attempted to apply for a loan or credit product from Spokane Teachers Credit Union but were denied full and equal consideration by the financial institution due to their alienage or immigration status.

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