Valley First Credit Union Denied Loan to DACA Recipient Based on Immigration Status, Lawsuit Claims

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Valley First Credit Union faces a proposed class action from a DACA recipient who claims the financial institution has unlawfully denied membership and financial products to consumers based on their immigration status.

The 10-page lawsuit alleges Valley First, which operates eight locations in California’s Central Valley, has violated federal and state civil rights laws by imposing unequal conditions on potential members and customers based on their alienage or immigration status.

The plaintiff, who is represented by attorneys with the Mexican American Legal Defense and Educational Fund, is a DACA recipient who received a Social Security number and authorization to work in the U.S. in 2012. Per the suit, the woman was hired by Valley First as a virtual teller in October 2021.

Later that month, the plaintiff applied for a personal loan from the member-owned credit union and received an email on November 1 stating that her loan had been approved, the case relays. A Valley First representative informed the plaintiff that in order to receive the loan, she would need to apply for membership with the credit union, open a savings account, pay a membership fee and upload a copy of her Social Security card, according to the complaint.

The lawsuit says that the plaintiff was denied membership to Valley First around November 5. Per the case, the woman received a voicemail in which a credit union representative informed her that Valley First is “unable to establish membership with a work-only Social Security number” and was therefore unable to fund her loan even though she was an employee of the institution.

The plaintiff says she experienced harm, including emotional distress and potential negative effects on her credit score, as a result of the defendant’s denial of her membership and loan application based on her immigration status.

The lawsuit looks to cover anyone who attempted to apply for a membership with or financial product from Valley First but was denied full and equal consideration by the credit union on the basis of their alienage or immigration status.

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