Perez v. Discover Bank

Outten & Golden and the Mexican American Legal Defense and Educational Fund (MALDEF), settled a proposed nationwide class action, brought by Deferred Action for Childhood Arrivals (DACA) recipients who alleged that Discover Bank unlawfully denied them loans.

Specifically, the lawsuit alleged that Discover Bank’s denials violated federal and state civil rights laws, including the California Civil Rights Act, which prohibits discrimination based on alienage and immigration status. Discover agreed to the settlement but disputed the claims in the lawsuit and maintains that it complied with the law.

Discover, a major U.S. lender, agreed to change its lending policies to make DACA recipients eligible for loans on terms comparable to U.S. citizens. It also agreed to create a settlement fund of $979,500 (excluding administration costs and attorneys’ fees) to compensate impacted DACA recipients.

“There are nearly 600,000 DACA recipients in the U.S,” said Ossai Miazad, counsel for the plaintiffs and partner at Outten & Golden LLP, “Many of them came to the U.S. as young children, and the denial of access to credit seriously restricts their ability to pay for college, buy homes, and otherwise promote their financial stability. We’re very pleased to have helped our clients seek justice, and make a positive impact on the consumer lending industry.”

The case was initially filed by plaintiffs Iliana Perez and Flavio Guzman Magaña who were subsequently joined by Josue Jimenez Magaña and Emiliano Galicia Felix.

Plaintiffs were represented by Ossai Miazad and Chauniqua Young of Outten & Golden LLP, and Thomas A. Saenz and Ernest I. Herrera of the MALDEF.