Facts

On July 22, 2020, Iliana Perez filed a class action complaint against Discover Bank in San Mateo Superior, contending that defendant's policy and practice of denying applicants who were not United States citizens or Legal Permanent Residents complete access to student and other loan and credit products, violated discrimination laws. Other Plaintiffs joined the case later. Plaintiffs, individuals who were recipients of Deferred Action for Childhood Arrivals (DACA), alleged that defendant rejected their applications due to having DACA or required them to have a U.S. citizen or permanent resident co-signer to extend or obtain loans.

Defendant, who later removed the case to USDC Northern, denied all allegations of liability and wrongdoing, maintaining it comported with all applicable laws.

Defendant, who later removed the case to USDC Northern, denied all allegations of liability and wrongdoing, maintaining it comported with all applicable laws.

Result

The parties reached an agreement wherein Discover admitted no wrongdoing or liability but agreed to pay $979,500 to settle class members' claims. Moreover, Discover agreed to review and amend its lending policies as needed to ensure DACA recipients are evaluated for credit eligibility on the same terms as citizens.

Other Information

Final approval hearing will be held on August 30, 2024.