Discover Bank Loans DACA Settlement: $979,500
Did you apply for a Discover student, personal, or home loan and were either denied or granted credit on the condition of having a U.S. citizen or permanent resident co-signer, while holding valid DACA status at the time of application? If so, you might be eligible in the class action settlement to receive up to $250, or up to $2,500 if you lived in California.
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Claim Form
Click Here to Submit a ClaimWho's eligible?
You are a member of the Settlement Class if you:
(1) applied for credit from Discover’s student, personal or home loan lines of business between July 22, 2018, and February 29, 2024, and were either declined credit or received credit after meeting Discover’s requirement to have a United States citizen or lawful permanent United States resident co-signer.
(2) were a recipient of valid and unexpired DACA status, resided in the United States and were not a citizen of the United States or a lawful permanent United States resident at the time of the Discover loan application.
If you did not have DACA status when you applied for a loan from Discover, you are not a Class Member, and your rights are not affected by this settlement.
If you are uncertain about whether you qualify as a Class Member, you can contact the Settlement Administrator.
Proof of Purchase
N/A
Settlement At a Glance
Settlement Amount
Varies, Up to $2,500.00
Claim Form Deadline
07/11/2024
Exclusion Deadline (Opt-Out)
07/11/2024
Final Approval Hearing
08/30/2024
Additional Information
After four years of litigation, DACA recipients nationwide have settled a class action lawsuit against Discover Bank, alleging the bank unlawfully denied them student, personal, and home equity loans based solely on their immigration status. Led by the Mexican American Legal Defense and Educational Fund (MALDEF) and Outten & Golden, the lawsuit asserted violations of federal and state civil rights laws, including California's Civil Rights Act.
The lawsuit, initiated by plaintiffs Iliana Perez and Flavio Guzman Magaña, highlighted instances where DACA recipients were denied loans or subjected to unfavorable terms. For instance, Perez, a San Francisco resident, was refused a loan consolidation by Discover in 2018 due to her citizenship status, despite previously securing a student loan from a Citibank subsidiary.
Similarly, Guzman Magaña, a DACA recipient since 2013, faced barriers when applying for a $35,000 loan in 2016 for graduate school, being required to have a co-signer due to his immigration status, despite possessing a work authorization and SSN card.
Despite disputing the claims, Discover Bank agreed to alter its lending policies for its student loan, personal loan, and home loan lines of business to make DACA recipients eligible for loans on terms comparable to U.S. citizens. Additionally, a class action settlement fund of $979,500 (excluding administration costs and attorneys’ fees) will compensate affected DACA recipients, pending preliminary court approval.
Think you might have a case? If you believe you've been affected by a similar situation, browse our list of Class Action Lawsuits and Open Class Action Settlements you may be able to join!
Stay Informed
Class Action Settlement Website:
https://lendingsettlementdaca.com/enClaims Administrator:
P.O. Box 5338
Portland, OR 97228-5338
1-888-841-6819
Legal Representation
Case Name:
Class Counsel:
Chauniqua D. Young
Adam L. Koshkin
OUTTEN & GOLDEN LLP
Defense Counsel:
STEPTOE LLP
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