Wells Fargo Class Action Says Bank Refuses Loans To DACA Residents

Wells Fargo faces a new class action claiming that the bank discriminates against immigrants by denying auto loans to DACA applicants.

Plaintiff Eduardo Peña says he was denied an auto loan when he applied with Wells Fargo in November 2018.

Peña, who was born in Mexico and holds Deferred Action for Childhood Arrivals (DACA) status, reportedly disclosed his immigrant status and submitted his work permit during his loan application.

Despite having a 748 credit score, Peña was allegedly denied an auto loan simply because of his DACA status.

“When he provided his work permit, the representative told him he was ineligible for the loan because his DACA status expired within the loan period,” the Wells Fargo class action claims.

“Mr. Peña explained that his status would be renewed and that work authorization under DACA is for two-year periods. The representative told Mr. Peña that he could not be approved for an auto loan.”

Despite allegedly looking at Peña’s application and choosing to deny it based on his DACA status, Wells Fargo ran a hard credit check on Peña anyways. This reportedly caused a derogatory mark on Peña’s credit report, resulting in negative consequences for his credit score.

According to Peña, Wells Fargo expressly discriminates against DACA individuals in violation of the Civil Rights Act of 1866. He also claims that the bank violates the Equal Credit Opportunity Act by failing to provide DACA individuals with accurate written statements regarding why their applications were denied.

Peña also claims that Wells Fargo has a long history of discrimination.

“Wells Fargo’s discriminatory auto loan policies are of a piece with the bank’s broader discriminatory consumer lending policies,” Peña claims in his Wells Fargo class action. “Plaintiff is similarly ineligible for a Wells Fargo student loan, unsecured credit card, personal loan, and small business loan due to his status under DACA. Wells Fargo has a long history of credit discrimination claims against it.”

Wells Fargo may also discriminate against other groups, according to Peña. In 2012, the bank reportedly paid $175 million to the Department of Justice to resolve claims that they discriminated against African American and Hispanic borrowers when they applied for mortgage loans during the housing boom.

Local governments, including those from Oakland, Sacramento, and Philadelphia, have reportedly also taken legal action against Wells Fargo for discrimination against African American and Hispanic individuals.

Peña seeks to represent two Classes in his Wells Fargo class action. The first Class includes DACA residents who were declined for an auto loan by Wells Fargo after July 16, 2017. The second Class includes DACA residents who were declined an auto loan through Wells Fargo and did not receive a written notice of adverse action with an accurate statement of denial reasons after July 16, 2017.

The Wells Fargo class action lawsuit seeks actual damages, nominal damages, exemplary damages, punitive damages, interest, court costs, and attorneys’ fees.

Peña and the proposed Class 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 Lawsuit is Peña, et al. 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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