MCU, which serves more than 631,000 members, said in a statement that it is committed to serving its diverse membership and takes concerns about discrimination seriously. The credit union said it is reviewing the lawsuit but declined to comment further regarding individual members or pending legal matters.
Fernandez is a Brooklyn resident who has been a Deferred Action for Childhood (DACA) recipient since 2014 and holds a Social Security number.
Authorized to work in the U.S., Fernandez is a network engineer for a national sports organization, according to the lawsuit.
In 2023, Perez decided to buy a car for the first time and visited MCU’s Brooklyn branch on July 17 after seeing its offer of auto loans with an interest rate of 5.750%. At the time, he had a 750 credit score. To apply for the loan, Perez became a member and opened a savings account. On the same day, MCU approved a $30,000, 60-month auto loan for him.
About a month later, an employee told the new member that MCU could no longer honor the terms of car loan because he had a “limited-term” driver’s license. New York and other states issue “limited-term” licenses to people who are not U.S. citizens or permanent residents but who hold a lawful temporary status. The employee told Perez the revocation of the loan was consistent with MCU guidelines, according to the lawsuit.
After Perez explained to the MCU employee that he is a DACA recipient, the employee said DACA recipients can only apply for a two-year loan under MCU guidelines but added that the loan could be extended to five years if Perez became a permanent resident.
“On August 16, 2023, at or around 2:05 PM, Plaintiff Perez received a Notice of Adverse Action via email from MCU,” the lawsuit stated. “The email stated that MCU was unable to approve Plaintiff’s loan request due to “[t]emporary residence” as well as “[e]xcessive obligations in relation to income” and “[t]emporary or irregular employment.”
