Man Files Proposed Class Action Lawsuit Against Kinecta FCU
Rogelio Esqueda alleges he was unlawfully denied a car loan because of his immigration status, which the credit union denies.
A California man filed a proposed class action lawsuit against the $6.8 billion Kinecta Federal Credit Union in Manhattan Beach, Calif., on the allegation that it unlawfully rejected his car loan application because of his immigration status.
Rogelio Esqueda, 42, of Huntington Park claimed in his class action lawsuit filed in U.S. District Court in Los Angeles earlier this month that the credit union unlawfully discriminated against him because he obtained his Social Security number as a recipient of the Deferred Action for Childhood Arrivals (DACA).
“Kinecta denies the claims alleged in the lawsuit and denies that it now does or ever has discriminated against anyone in violation of the Civil Rights Act or the California Unruh Act,” the credit union said in a prepared statement. “Beyond that, Kinecta can’t comment on pending litigation.”
On Oct. 5, 2023, Esqueda applied for a $16,000 auto loan through Kinecta’s website. Although he was not a member, he lived in a ZIP code that the credit union serves.
Although he received an automated reply from the credit union that his application was being reviewed, the following day Esqueda received another email indicating that Kinecta could not verify his identity, which was necessary for opening an online account. However, a few hours later, he received an email congratulating him on the approval of his loan, according to the lawsuit.
The email reiterated that Esqueda was pre-approved for a $16,000 loan with a 6.99% interest rate, which could be lowered to 6.74% with automated payments through a Kinecta checking account.
After he submitted the required documents to process the loan, he received no response. He then called a loan representative who said Esqueda’s application had been rejected because he was not a permanent resident, according to the lawsuit.
Esqueda claimed when he applied for the Kinecta loan his credit score was 780, but when he checked it after the credit union’s loan denial, it fell to 748. He obtained another car loan elsewhere but on less favorable terms. That loan was for $18,466 with a finance charge of $6,158 and an interest rate of 9.84%, according to the lawsuit.
Esqueda is being represented by attorneys for the Mexican American Legal Defense and Educational Fund in Los Angeles. This proposed class action lawsuit is the 12th filed by the organization since 2017 challenging the lending policies of financial institutions involving DACA recipients.