MALDEF Sues Wells Fargo Over Loans to DACA Students

A Latino legal and civil rights organization is suing one of the nation's biggest lenders, alleging it denied loans to qualified applicants based on their immigration status.

The Mexican American Legal Defense and Education Fund (MALDEF) and the law firm Outten & Golden LLP filed the federal lawsuit against Wells Fargo.

In a press release announcing the lawsuit, MALDEF cited the case of Mitzie Perez, a third-year student at the University of California, Riverside. Perez successfully applied to the Obama administration's DACA program, which has allowed young immigrants without legal status who were brought here as young children to lawfully study and work in the U.S. Under the program, which was renewable every two years, Perez had obtained a Social Security number.

Perez applied for a student loan; she answered on the application that she wasn't a citizen or permanent resident and was denied. She then changed her response to "permanent resident alien" and was told she would need a co-signer for the loan.

Ossai Miazad, of Outten & Golden said in a statement that denying individuals the right to contract for a loan "based on alienage is discriminatory under California and federal law."

In a statement, Wells Fargo said it was "disappointed" that MALDEF and the California League of United Latino Citizens had filed suit "rather than work with us on solutions to help people realize their goals of higher education." The company stated it remains "focused on our responsible lending practices to assist temporary and permanent residents and U.S. citizens in obtaining student financing."

DACA students are not eligible for federal financial aid, though they may be eligible for state or college aid, or private scholarships. The suit states there is no federal or state law or regulation that restricts banks from providing financial products to customers because they are not citizens, though under federal law, it is one factor that can be used to verify a person's identity.http://www.nbcnews.com/news/latino/m...udents-n714416

I don't blame Wells Fargo for not wanting to give us loans. There is no guarantee that we will keep our DACA status. So if we lost our EAD and unable to work or deported, Wells Fargo will be screwed. Loan business is all base on risk, no hard feeling.

Chase happily took my business.

Do you also not blame them for opening credit card accounts to people and not telling them ?

Been denied by Wells Fargo more than once due to immigration status. I just opened an account with BoA. Hopefully they are more lenient.

Chase is the way to go. Wells Fargo and BOA are a bunch of crooks

Never had an issue with Chase either.

All banks are crooks.

Yep,

I have credit cards but pay them right away. Avoid loans for your own good, unless absolutely necessary.

Chase will rip you apart with fees if you miss one payment and they will rocket your interest.

Two different issues. My point is that I understand from a lender's point of view on why immigration status is an important factor. Of course I want them to be more accepting, I have DACA too. It's Wells Fargo's decision and I'm happy to take my business elsewhere