Wells Fargo DACA Loans Class Action Lawsuits Paused For Negotiations

Citing negotiations between the parties, a federal judge stayed a pair of Wells Fargo DACA loan denial class action lawsuits.

The complaints were lodged over claims that Wells Fargo discriminated against DACA recipients when issuing loan approvals.

DACA refers to Deferred Action for Childhood Arrivals, a federal law that extends protections to immigrants who are undocumented and arrived in the United States as children.

The Wells Fargo DACA loan denial class action lawsuits allege that the bank refused to issue loans to those without citizenship or permanent residency.

The plaintiffs argued that Wells Fargo’s policy violated both the federal Civil Rights Act and California state laws.

The first complaint was filed in 2017 by a plaintiff who said despite having DACA status and a federal work permit under the act, she was denied a student loan by Wells Fargo in 2016.

Another Wells Fargo DACA loan denial class action lawsuit was filed in 2019 by a man with DACA status who says his application for a car loan was denied simply because his work permit expired during the term of the loan, despite him explaining that it would be renewed.

The Wells Fargo class action lawsuits sought to represent those who were denied a loan by Wells Fargo because of their citizenship status, including DACA recipients.

Recently, Wells Fargo reportedly expanded its loan offerings to include options for DACA recipients. The parties also submitted stipulations to the court asking for time to reach a resolution in the class actions, before proceeding with the litigation.

According to Law360, Wells Fargo issued a statement indicating the bank intended to put new loan products on the market in 2020 and 2021. The company also said it would open up access to DACA recipients; a decision it came to after working with the Mexican American Legal Defense Fund.

“We believe it is incumbent upon us to make credit as available as possible for these individuals as they seek to realize their aspirations,” the CEO of Wells Fargo said in the statement.

In their stipulations submitted the day after the statement, Wells Fargo and the plaintiffs noted in January they participated in a productive mediation and have reached an agreement on the principle of the matter. They each indicate that, with a little more time, they should be able to reach a resolution.

U.S. District Court Judge Maxine M. Chesney agreed to give the parties until May 5, 2020 to reach an agreement in the Wells Fargo DACA loan denial class action lawsuits.

Both plaintiffs and the proposed Classes are represented by Jahan C. Sagafi, Rachel Dempsey, Ossai Miazad and Michael N. Litrownik of Outten & Golden LLP.

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

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