Ally Class Action Alleges Bank Denies Accounts to Non-US Citizens

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Ally Bank Account Denial Class Action Lawsuit Overview:

• Who: A woman who was brought to the United States as a child and is allowed to work under the Deferred Action for Childhood Arrivals program is suing Ally Bank.
• Why: The woman says the bank denied her an account because she is not a U.S. citizen or legal permanent resident in violation of the law.
• Where: The class action lawsuit was filed in a California federal court.

Ally Bank illegally denies non-United States residents access to bank accounts even if they are legally allowed to work in the country, a new class action lawsuit alleges.

Plaintiff Mariela Aguilar Velazquez filed the class action complaint against Ally Bank Dec. 20 in a California federal court, alleging violations of the Civil Rights Act and California Civil Code. 

Aguilar is a recipient of the Deferred Action for Childhood Arrivals (DACA) program. 

DACA is a policy that allows immigrants who were brought to the United States as children to receive a renewable two-year period of deferred action from deportation and become eligible for a work permit in the U.S. 

Aguilar has had authorization to work in the United States and a Social Security Number since 2012. However, in Nov. 2020, she says when she went to open a checking and savings account with Ally Bank, she was unlawfully denied.

“Plaintiff Aguilar received a phone call from an Ally Bank representative informing Plaintiff Aguilar that she is ineligible to open a checking and savings account with Ally Bank because she is not a U.S. citizen or an Legal Permanent Resident,” the lawsuit says. “Plaintiff Aguilar asked the representative whether this denial was allowed by law. The representative answered that it is Ally Bank’s policy to deny anyone who is not a U.S. citizen or permanent resident.”

Plaintiff Claims No Other Bank Denied Her An Account Because Of Immigration Status

Aguilar is alleging unlawful discrimination on the basis of alienage in violation of the Civil Rights Act and the Unruh Civil Rights Act, as codified at California Civil Code. She said no other bank has denied her a bank account because of her immigration status.

“Plaintiff Aguilar suffered harm as a result of Ally Bank’s denial of her checking and savings account application because of her alienage,” the lawsuit states. “Ally Bank’s denial of her application caused Plaintiff Aguilar to suffer emotional distress.”

She’s seeking to represent anyone in the United States who was denied a bank account from Ally Bank on the basis of alienage plus a California class.

She’s seeking certification of the class action, an injunction, damages, fees, costs and a jury trial.

In 2020, Wells Fargo agreed to pay a $20 million settlement to DACA recipients whose loan applications were denied by Wells Fargo. 

What do you think of the allegations against Ally Bank? Let us know in the comments! 

The plaintiffs are represented by Deylin O. Thrift-Viveros of the Mexican American Legal Defense and Educational Fund. 

The Ally Bank Alienage Class Action Lawsuit is Mariela Velazquez et al., v. Ally Bank, Case No. 2:21-at-01225, in the U.S. District Court Eastern District of California Sacramento Division. 

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