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Judge Approves Class-Action Lawsuit Settlement Against California CU

Valley First CU agrees to pay $120,000 and denies allegations it violated federal and state civil rights of 48 individuals.

gavel on money Credit/Shutterstock.

A federal magistrate judge granted preliminary approval last week to settle a proposed class action lawsuit against a California credit union for allegedly violating state and federal laws after denying a personal loan and membership to a woman because she could only provide a “work only” Social Security number as a recipient of the Deferred Action for Childhood Arrivals (DACA) policy of 2012.

The $1 billion Valley First Credit Union in Modesto has agreed to pay $120,000 that will include a $1,200 payment to 48 individuals who are part of the class action lawsuit, $36,000 in estimated attorney fees, a $10,000 administrator’s fee and a $5,000 service award for Karla Ayala. She filed the lawsuit in June of last year and is represented by attorneys from the Mexican American Legal Defense and Educational Fund in Los Angeles, according to court documents.

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Peter Strozniak

 

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