Settlement Stock Art. Photo by John Disney/ALM
A federal judge granted approval of a preliminary class action lawsuit settlement on Aug. 6 between the $3.8 billion Nuvision Credit Union of Huntington Beach, Calif., and 34 members who were allegedly denied loans because of their immigration status rather than on their ability to repay.
While Nuvision disputed the lawsuit’s allegations and denied any wrongdoing or liability, the credit union decided to settle the case to avoid the additional expense, inconvenience and distraction of further litigation.
The Mexican American Legal Defense and Educational Fund (MALDEF) filed the lawsuit in U.S. District Court in Santa Ana on behalf of Luis Saul Bautista Martinez, 29, of Los Angeles, a Deferred Action for Childhood Arrivals (DACA) recipient, and other immigrants.
In April 2023, Nuvision initially approved Martinez’s $35,000 auto loan application but later allegedly denied it because he is not a permanent U.S. resident. As a DACA recipient, Martinez is authorized to work in the U.S. and possesses a Social Security number. Federal and state laws prohibit financial institutions from denying credit products based on race, sex, color, religion, ancestry, national origin, immigration status, age and other characteristics.
As part of the agreement, Nuvision has agreed to create a settlement fund of $108,800 to compensate the lawsuit’s 34 class members who will each be paid $3,200.
Martinez will receive a $5,000 for his assistance in the case.
Attorneys who filed the class action lawsuit are expected to be paid up to $40,000, according to the preliminary settlement.
Nuvision also has agreed to update its underwriting policies to ensure applicants will not be denied consumer credit products solely based on their immigration or citizenship status.
Peter Strozniak can be reached at pstrozniak@cutimes.com.
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