Wells Fargo DACA Class Action Lawsuit Settles Days Before Major Supreme Court Ruling

A mere two days before a landmark Supreme Court ruling refusing to gut the Dreamers Act, a $20 million settlement was made in the Wells Fargo DACA class action lawsuit.

Several years ago, a pair of class action lawsuits were filed against Wells Fargo alleging the bank had improperly refused loans to non-citizens. The plaintiffs in the complaints were individuals who had attained DACA status, or “deferred action” to young people who had been raised in the United States, but who did not have legal citizenship.

During the same time, the Trump administration attempted to end the DACA program and the legal protections it afforded to its young recipients. That attempt recently failed, according to The New York Times, when the Supreme Court ruled in a 5-4 decision against the administration.

DACA, or the “Deferred Action for Childhood Arrivals,” was enacted by the previous presidential administration. Under the executive order, those who had arrived in the United States as children with “undocumented” status would be able to apply for two year renewable work permits that also deferred immigration actions, including deportation.

The plaintiffs in the class action lawsuits claimed that Wells Fargo had systematically denied those with DACA status for various loans, including student loans and car loans.

One plaintiff, a student, says that her application for a student loan was denied because of her DACA status.

In another case, a man claimed that he had been denied for a car loan simply because of his DACA status and because his permit would expire (and be renewed) during the term of the loan.

The Wells Fargo DACA class action lawsuits claimed that denial of loans to DACA recipients violated the Civil Rights Act of 1866, the Equal Credit Opportunity Act, and California laws prohibiting discrimination.

Earlier this year, the parties put the Wells Fargo DACA class action lawsuits on hold to negotiate a resolution.

On June 16, the bank announced that it would pay $20 million to end the pair of class action lawsuits, including up to $13.73 million in payments to proposed Class Members. Proposed Class Members include DACA recipients who were denied loans by the bank in recent years.

The Wells Fargo DACA class action settlement was announced just days before the U.S. Supreme Court refused to uphold the Trump administration’s decision to end the DACA program. According to Fox News, that decision violated the Administrative Procedure Act.

Of note, the opinion of the Supreme Court Justices found that DACA is a program that confers a benefit to people who apply.

“In short, the DACA Memorandum does not announce a passive non-enforcement policy; it created a program for conferring affirmative immigration relief,” states the Supreme Court opinion.

Under the terms of the Wells Fargo DACA class action settlement, the bank admits no wrongdoing. However, Wells Fargo will offer loans to DACA recipients.

Additionally, the terms of these loans will be on the same terms and conditions as U.S. citizens.

“The parties have now settled this litigation for significant monetary and programmatic relief. In connection with the settlement, Wells Fargo will change its direct auto lending policy to make direct auto loans available to DACA recipients on the same terms and conditions as it offers credit to U.S. citizens, fully eliminating the harm challenged by the lawsuit,” states the settlement agreement with the plaintiff who alleged he was denied a car loan by Wells Fargo due to discrimination.

Under the terms of the settlement agreement relating to the Wells Fargo DACA class action lawsuit over student loans, the bank has agreed to “change its lending policies to make credit and loans available to DACA recipients on the same terms and conditions as it offers credit to U.S. citizens.”

Will you benefit from the Wells Fargo DACA class action settlement? Share your experience in the comment section below!

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The lead plaintiffs and proposed Class Members are represented by Jahan C. Sagafi, Rachel Dempsey, Ossai Miazad and Michael N. Litrownik of Outten & Golden LLP. The Perez plaintiffs are also represented by Daniel S. Stromberg and Hannah Cole-Chu of Outten & Golden, and by Thomas A. Saenz and Belinda Escobosa Helzer of the Mexican American Legal Defense and Educational Fund. Peña is also represented by Brian James Shearer, Craig L. Briskin and Benjamin D. Elga of Justice Catalyst Law.

The Wells Fargo DACA Class Action Lawsuits are Perez et al v. Wells Fargo Bank NA, Case No. 3:17-cv-00454, and Peña v. Wells Fargo Bank NA, Case No. 3:19-cv-04065, in the U.S. District Court for the Northern District of California.

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