‘When will this end?’ asks woman who was denied car loan due to ‘type of license she had’ despite application being approved

A class action lawsuit has been filed against Noble Credit Union for discrimination.

Filed by a Latino civil rights organization, the lawsuit alleges that the Fresno, Calif.-based credit union discriminated against Noemi Peraza Lopez, 28, by denying her a loan.

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Lopez has Deferred Action for Childhood Arrivals (DACA) status as an immigrant from Mexico.

The lawsuit alleges that Noble Credit Union denied her an automobile loan based on her DACA status.

The Mexican American Legal Defense and Educational Fund, the civil rights organization that filed the lawsuit, says the credit union’s policies violate state anti-discrimination laws.

Thomas Saenz, President and General Counsel of MALDEF spoke with O Fresno Bee about the credit union’s “limited and arbitrary immigration status requirements.”

“By definition, credit unions must provide more affordable financial products to their members,” Saenz said.

“Anti-immigrant bias and illegal discrimination are antithetical to the mission of any credit union.”

Her organization claims that Lopez’s limited-term driver’s license, granted to DACA residents, is what disqualified her for the loan.

The functional difference between the limited-term license and a standard California license is that the former must be renewed every two years instead of every five years.

Lopez is convinced that she was discriminated against by the union and cannot believe that this is still an occurrence in 2024.

She applied for a loan of $35,865.30, co-signed by a US citizen, and was approved the next day for $35,000.

Lopez continued planning to purchase the car, but was reportedly caught off guard by a message from Nobel Credit Union denying her the money.

“[Noble] we cannot give you credit at this time,” the text said.

She took a phone call with a credit union representative, who told Lopez she was denied because of her “limited-term” license, the MALDEF press release said.

Shortly thereafter, Lopez alleges, an official letter followed informing her that the credit union was “unable to offer you credit on the terms you requested” because it does not “grant credit to any applicants on the terms and conditions you requested.”

Anti-immigrant bias and illegal discrimination are antithetical to the mission of any credit union.”

Thomas Saenz, President of MALDEF

Lopez then allegedly had to apply for a loan at a bank, where he was approved with a higher interest rate.

“I was treated unfairly and discriminated against,” Lopez said in a press release.

“It’s 2024 and [DACA recipients] are still being treated unfairly. We help the economy, but we are still denied opportunities for growth. When will this end?”

But, according to Saenz, many other residents with DACA status face similar discrimination.

“In our experience…it’s not an isolated experience,” MALDEF attorney Luis Lozada, co-counsel in the suit, told The Bee. “It’s a policy.”

The Code of Federal Regulations allows lenders to take immigration status into consideration when evaluating loan applications “to ascertain the lender’s rights and remedies with respect to repayment.”

But the Consumer Financial Protection Bureau and the Department of Justice issued a statement warning lenders not to rely excessively on immigration status.

Doing so, they warned, could “conflict with the anti-discrimination provisions of the ECOA (Equal Credit Opportunity Act) and could also violate other laws.”

Nobel Credit Union deferred comment to The Fresno Bee, stating it is “not in a position to provide further comment.”

The US Sun also reached out to Nobel Credit Union for comment but did not immediately receive a response.