One Nevada Credit Union agreed to a $76,000 fund, paying $2,000 to each of the 38 class members. It also agreed to pay MALDEF attorneys $21,229 in legal fees and costs.

MALDEF filed the lawsuit in May 2024 in U.S. District Court in Los Angeles on behalf of Rogelio Esqueda, a Kinecta member and Deferred Action for Childhood Arrivals (DACA) recipient. Esqueda will receive a $5,000 service fee as part of the settlement.

Kinecta denied Esqueda's auto loan application after he provided a "for work only" Social Security number, issued to noncitizens that legally authorizes them to work in the U.S.

MALDEF also filed a lawsuit in September 2022 in U.S. District Court in Nevada on behalf of Jorge Hernandez Castro, a DACA recipient and One Nevada CU member, whose auto loan was similarly rejected. He also will receive a $5,000 service fee.

Both credit unions agreed to change policies and train staff to evaluate loan applications based on creditworthiness, not immigration status. MALDEF argued that such discrimination violates the Civil Rights Act of 1866, which, under Section 1981, has been interpreted to protect noncitizens when discrimination is linked to race or national origin.

Current DACA recipients may renew status and work permits under U.S. Citizenship and Immigration Services rules. However, new applications are paused due to litigation. In January, the 5th Circuit Court of Appeals ruled the program unlawful for new applicants but allowed current recipients to retain protections pending litigation, according to the American Civil Liberties Union.

Peter Strozniak can be reached at [email protected].