MALDEF SUES NORTH CAROLINA FINANCIAL INSTITUTION AND TULSA DEALERSHIP FOR DISCRIMINATORY LENDING PRACTICES
MALDEF – News
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Jun 22, 2026 | Court Cases Immigrants' Rights , DACA , News Releases LOS ANGELES — A Latino civil rights organization filed a lawsuit Thursday against a North Carolina financial institution and a Tulsa, Oklahoma motorcycle dealership for unlawfully denying a loan to a Deferred Action for Childhood Arrivals (DACA) recipient on the basis of his immigration status. MALDEF (Mexican American Legal Defense and Educational Fund) filed suit in federal court on behalf of Oscar Guillén Arauz, a DACA recipient, challenging the lending practices of Sheffield Financial, a subsidiary of Truist Financial Corporation, and Matt’s ATV & Offroad. The lawsuit alleges that Sheffield Financial and Matt’s ATV & Offroad unlawfully denied Guillén Arauz credit because the companies require applicants to be either U.S. citizens or lawful permanent residents, in violation of federal civil rights law. “Whether or not the current presidential administration invites discrimination against immigrants, businesses of all kinds need to understand that such discrimination is likely unlawful under longstanding and continuing legal constraints,” said Thomas A. Although Guillén Arauz had a credit score of 772, he received an adverse action notice stating the denial was due to the financer being “unable to verify your identity,” while also indicating he could be reconsidered with “acceptable proof of identity.” Following the denial, Guillén Arauz was informed by a dealership representative that Sheffield Financial only approves loans for U.S. citizens or permanent residents. Guillén Arauz, who has been in the DACA program since 2017, was not offered any loan terms and was forced to seek alternative financing on an emergency basis to complete the purchase. “By denying his motorcycle loan application, the defendants effectively denied the plaintiff’s only means of transportation for work and life,” said Luis Lozada, MALDEF staff attorney. “There is no reason for the defendants to have denied the loan in a modest sum when the plaintiff is a college graduate with good credit history.” Guillén Arauz, who was born in Honduras and brought to the United States as a child, is a college graduate employed in Oklahoma. He has since filed a complaint with the Consumer Financial Protection Bureau regarding the denial and later learned the lender had no record of his application, despite issuing the adverse action notice. The lawsuit seeks declaratory relief, damages, and class certification for all people who were denied credit based on citizenship or immigration status. “My mother sacrificed everything to bring me to this country almost 24 years ago so we could build a better life,” said Guillén Arauz. “As a DACA recipient, I have worked tirelessly to give back to the community that welcomed us. Yet, despite my financial background and deep commitment to this community, Sheffield Financial denied me the same opportunities available to others simply because of my immigration status. This lawsuit is not just about me; it’s about demanding that financial institutions stop using discriminatory practices that undermine the hard work of immigrant families who are vital to the fabric of our economy.” Sheffield Financial specializes in financing for consumer recreational vehicles and commercial equipment. This is the 25th lawsuit filed by MALDEF since 2017 that challenges the policies of financial and other consumer institutions that discriminate against DACA recipients and other immigrants.
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LOS ANGELES — A Latino civil rights organization filed a lawsuit Thursday against a North Carolina financial institution and a Tulsa, Oklahoma motorcycle dealership for unlawfully denying a loan to a Deferred Action for Childhood Arrivals (DACA) recipient on the basis of his immigration status. MALDEF (Mexican American Legal Defense and Educational Fund) filed suit in federal court on behalf of Oscar Guillén Arauz, a DACA recipient, challenging the lending practices of Sheffield Financial, a subsidiary of Truist Financial Corporation, and Matt’s ATV & Offroad. The lawsuit alleges that Sheffield Financial and Matt’s ATV & Offroad unlawfully denied Guillén Arauz credit because the companies require applicants to be either U.S. citizens or lawful permanent residents, in violation of federal civil rights law. “Whether or not the current presidential administration invites discrimination against immigrants, businesses of all kinds need to understand that such discrimination is likely unlawf
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