Social Finance (SoFi) Lending Discrimination
SoFi Settles Case Alleging Lending Discrimination Against DACA Recipients
On December 15, 2022, the Court ordered preliminary approval of a proposed settlement in the lawsuit, Juarez v. Social Finance, Case No. 3:20-cv-03386-LB. If approved, the settlement requires Sofi to consider DACA and Conditional Permanent Residents on the same terms as U.S. citizens when making lending decisions. Sofi has also created a settlement fund for a subset of individuals who called its dedicated hotline for non-U.S. citizen applicants between December 2019, 2019 through December 15, 2022 and who were denied loan products. These individuals for whom Sofi has records will receive notice of the settlement and an opportunity to file a claim.
On May 19, 2020, Ruben Juarez filed a nationwide class action lawsuit against SoFi, a major online personal finance company, challenging policies which deny DACA recipients equal access to student loans and other financial products. The lawsuit, Juarez v. Social Finance, Case No. 3:20-cv-03386-LB, was filed in federal court in San Francisco. Mr. Juarez is represented by Outten & Golden LLP and Lawyers for Civil Rights.
Many DACA recipients, particularly those seeking to better themselves through higher education, have good credit and could greatly benefit from student loan or refinancing assistance from companies such as SoFi. The suit alleges, however, that SoFi has systematically denied and limited DACA recipients’ access to lending and refinancing opportunities. First, the suit alleges that SoFi blocked any DACA recipients from receiving loans solely because of their immigration status. Then, when confronted about this policy in late 2019, the suit alleges that SoFi made changes, but still only makes DACA recipients eligible for financing if they have access to a creditworthy co-signer who is a U.S. citizen or Legal Permanent Resident – an unnecessary and potentially difficult requirement that SoFi does not impose on other qualified borrowers.
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If you are a DACA recipient and SoFi denied you student loans, refinancing options, or access to other credit services, please contact us to learn more about your rights. All information will be held strictly confidential. There are no charges or obligations for our review of your case.