Perez v. Discover Bank

This lawsuit claims that Discover unlawfully discriminated against DACA recipients who applied for student, personal, and home loans. This Settlement provides different relief for people who lived in or outside California at the time they applied for a loan and were declined credit (or received credit with a U.S. citizen or permanent resident co-signer) due to the different protections available under California and federal laws.

Discover denies the Plaintiffs’ claims and maintains that its policies complied with the law. The Court has not decided in either Plaintiffs’ or Discover’s favor.

The Parties have now settled this lawsuit, and a Settlement Administrator has sent a notice. As part of the Settlement, Discover has agreed to change 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 and to make cash payments to members of the Settlement Class.

Discover’s records show that you may have:

1. submitted an application to Discover for a student loan, personal loan, or home loan (during the period covered by this case);
2. had a U.S. address at the time of your application(s); and
3. been denied credit or received credit after meeting Discover’s requirement to have a U.S. citizen or permanent resident co-signer.

Discover’s records do not indicate who had DACA status at the time of these applications, which means you and others receiving a notice may need to demonstrate you had such status to receive cash payments.

The Court ordered you be sent a notice because the proposed Settlement may apply to you, and you have a right to know about it and all your options before the Court decides whether to approve the Settlement.

In a class action, one or more people called “Class Representatives” sue on behalf of other people who have similar claims. All those people together are the “Class” or “Class Members.” The Class Representatives and Class Members together are the “Plaintiffs,” and in this case, Discover is the “Defendant.” One court resolves the issues for everyone in the Class.

The Court did not decide in either Plaintiffs’ or Discover’s favor. Both sides believe they would have won this lawsuit, but there was no ruling in favor of either party. Instead, both sides agreed to a Settlement, which avoids the costs, delays, and uncertainties associated with a trial and ensures that Class Members get a payment. Plaintiffs and Plaintiffs’ lawyers think the Settlement is the best result for all Class Members and that the terms and conditions of the Settlement are fair, reasonable, and adequate.

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; and
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 not sure whether you qualify as a Class Member, you can contact the Settlement Administrator. Please refer to the Contact Us page and use the method of communication you are most comfortable with.

The Settlement provides cash payments and changes to Discover’s lending policies. First, Discover has agreed to change its lending policies for its student loan, personal loan, and home loan lines of business so DACA recipients are evaluated for loan eligibility on the same terms as U.S. citizen applicants as long as the applicant satisfies Discover’s credit requirements and underwriting guidelines.

Second, Discover has agreed to make cash payments to Class Members who timely submit a verified Claim Form. Discover has agreed to pay those Class Members in California who timely submit a verified Claim Form up to $2,500 and to pay those Class Members outside of California who timely submit a verified Claim Form up to $250. In the event that the total amount of Claims of California Class Members and National Class Members combined exceeds the amount available in the Settlement Fund, each Class Member will receive a pro rata share, with California Class Members entitled to ten times the pro rata share as compared to non-California Class Members. In the event that the combined total payments to Settlement Class Members are less than the amount for distribution in the Settlement Fund, the remaining amount will be reallocated to Class Members based on this same allocation formula, but no individual payment will be more than $16,000.

Remainder of Funds and Cy Pres: The maximum amount in the Settlement Fund for the class is $979,500, including Service Awards of $8,000 for each of the three Class Representatives. Any amount left in the Settlement Fund after making payments to Class Members and paying the Service Awards to the Class Representatives will be distributed to The Dream.US.

Attorneys’ Fees and Costs and Settlement Administration: Discover has agreed to pay an additional amount (to be determined by the Court) to cover Class Counsel’s attorneys’ fees and costs and to cover the cost of administering the Settlement.

To receive a payment under the Settlement, you must submit a Claim Form either through this website at a later date, by email to claims@LendingSettlementDACA.com, or by mail to the address on the Contact Us page. Please read the instructions and certification carefully, fill out the applicable form completely and accurately, and submit the form and any documents when requested. Claim Forms must be sent to the Settlement Administrator, postmarked no later than July 11, 2024, or submitted online (coming soon) by July 11, 2024.

You must complete the entire Claim Form and submit any required documentation to the Settlement Administrator. Failure to do so may result in the denial of your Claim, which means you will not receive a cash payment from this Settlement.

Once the deadline for making claims has passed, the Court will hold a hearing on August 30, 2024, at 10:00 a.m. to decide whether to approve the Settlement. If the Court approves the Settlement and there are no appeals, checks/payments may be mailed/disbursed tentatively around November 2024. However, because it is always possible for there to be unexpected delays or appeals, it is possible the payments will be delayed by a year or more, or an appeals court will determine the payments cannot be made.

We will provide regular updates on the status of the Settlement on this website. If your contact information changes, please submit your new contact information to the Settlement Administrator.

If the Court grants final approval of the Settlement, all Class Members who do not opt out of the Settlement are giving up (also called “releasing”) their right to sue Discover for any claims based on immigration status, alienage, or lack of United States citizenship. This release includes but is not limited to, claims under Section 1981 of the Civil Rights Act of 1866 and the Unruh Civil Rights Act and both known and unknown claims. Class Members will give up these rights whether or not they choose to submit a Verified Claim Form. Unless you exclude yourself, you will remain a Class Member. If the Settlement is approved and becomes final, all Court orders and judgments will apply to you and legally bind you.

The full text of the release is outlined in the Settlement Agreement, which is available for review or download here.

The Court has decided that the lawyers at Outten & Golden LLP and the Mexican American Legal Defense and Educational Fund are qualified to represent you and all Class Members. These lawyers have been designated as “Class Counsel” based on a determination that they are capable and experienced in handling complex discrimination class actions.

You can contact Class Counsel at:

OUTTEN & GOLDEN LLP
Ossai Miazad
1225 New York Avenue NW
Suite 1200B
Washington, DC 20005

Chauniqua D. Young
Adam L. Koshkin
One California Street
12th Floor
San Francisco, CA 94111
DiscoverDACASettlement@outtengolden.com
Phone: 866-772-7338

Class Counsel will submit an application to the Court to recover their attorneys’ fees and costs. Discover will not object to Class Counsel seeking an award of attorneys’ fees and costs but may challenge the amount of the attorneys’ fees and costs sought. The award of attorneys’ fees and costs will be paid by Discover separately and apart from the Settlement Fund.

To exclude yourself from the Settlement, you must submit a written request to the Settlement Administrator with the following information:

1. the case name;
2. your name and address;
3. your signature;
4. a statement that indicates a desire to be excluded from the Settlement Class, such as, “I hereby request that I be excluded from the proposed Settlement Class”; and
5. an affirmation via sworn statement that you were denied a loan or received a loan with a U.S. citizen or permanent resident co-signer and held valid and unexpired DACA status at the time of your application.

If you are asked to do so, you must also provide either:

1. a copy of your I-797 approval notice for an I-821D application or
2. a work authorization card containing the code “C- 33,” or other documentation agreed upon by the Parties that shows valid and unexpired DACA status at the time of your loan application.

Your exclusion request must be postmarked no later than July 11, 2024, and must be mailed to the Settlement Administrator at:

Perez et al. v. Discover Bank
Settlement Administrator
P.O. Box 5338
Portland, OR 97228-5338

Requests for exclusion must be mailed to the Settlement Administrator and cannot be sent via email. If you ask to be excluded, you will not receive a Settlement payment and you cannot object to the Settlement.

If your request for exclusion is late or deficient, you will still be considered a part of the Settlement Class. You will be bound by the Settlement and by all other orders and judgments in this lawsuit, and you will not be able to participate in any other lawsuits based on the claims in this case.

You can ask the Court to deny approval by filing an objection. You cannot ask the Court to order a different Settlement; the Court can only approve or reject the Settlement. If the Court denies approval, no Settlement payments will be sent out and the lawsuit will continue. If that is what you want to happen, you must object.

Any objection to the proposed Settlement must be in writing and submitted to the Settlement Administrator at the following address:

Perez et al. v. Discover Bank
Settlement Administrator
P.O. Box 5338
Portland, OR 97228-5338

If you file a timely written objection, you may, but are not required to, appear at the Final Approval Hearing either in person or through your own attorney. If you appear through your own attorney, you are responsible for hiring and paying that attorney. All written objections must include:

1. the case name and number (Perez et al. v. Discover Bank, Case Number 3:20-cv-06896-SI);
2. the name, address, and telephone number of the Settlement Class Member objecting and, if represented by counsel, of his/her counsel;
3. the reasons for the objection;
4. a statement of whether he/she intends to appear at the Final Approval Hearing, either with or without counsel; and
5. an affirmation via a sworn statement that the individual had valid and unexpired DACA status and was denied a student loan, personal loan and/or home loan, from Discover or received a loan after meeting Discover’s requirement to have a U.S. citizen or permanent resident co-signer.

In addition to the Settlement Administrator, objections must be submitted to the Court either by mailing them to the Clerk of Court, United States District Court for the Northern District of California, Phillip Burton Federal Building and United States Courthouse, 450 Golden Gate Avenue, San Francisco, California 94102, or by filing them in person at that location. Objections must be filed or postmarked on or before July 11, 2024.

Additionally, if you choose to make a written objection, you may be requested to send to the Settlement Administrator either a copy of:

1. an I-797 approval notice for an I-821D application
2. a Work Authorization Card containing the code “C-33” or
3. other documentation agreed upon by the Parties to show valid and unexpired DACA status at the time of your loan application.

Please only send copies of these documents and not the actual documents. DO NOT SEND THESE DACA/WORK AUTHORIZATION DOCUMENTS TO THE COURT.

The Court plans to hold a Final Approval Hearing by video conference on August 30, 2024, at 10:00 a.m., at the United States District Court for the Northern District of California, Phillip Burton Federal Building and United States Courthouse, 450 Golden Gate Avenue, San Francisco, California 94102, in Courtroom 1. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will listen to people who wish to speak at the hearing, if any. The Court may also decide how much to pay the Class Counsel and the Class Representatives. After the hearing, the Court will decide whether to approve the Settlement. The Final Approval Hearing may be postponed without further notice to the Class. If you plan to attend the hearing, you should check this website or the Court’s PACER site at https://ecf.cand.uscourts.gov to confirm that the date has not been changed.

No. Class Counsel represents you and will answer any questions the Court may have. But you are welcome to come at your own expense. If you send a comment (including an objection), you do not have to come to Court to talk about it. You may also pay your own lawyer to attend, but it is not necessary.

You may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must send a letter to the Clerk of the United States District Court for the Northern District of California, Phillip Burton Federal Building and United States Courthouse, 450 Golden Gate Avenue, San Francisco, California 94102, stating: “Notice of Intention to Appear at the Fairness Hearing in Perez et al. v. Discover Bank, Case No. 3:20-cv-06896-SI.” Your letter must include copies of any papers, exhibits, or other evidence that you intend to present to the Court.

You cannot speak at the hearing if you have opted out or excluded yourself, because the case no longer affects you.

This website is intended to be a summary of the terms of the Settlement. You may also review and/or download the Settlement Agreement, the operative Complaint, and the Notice for more detail.

You may also obtain this information by contacting the Settlement Administrator at info@LendingSettlementDACA.com or class counsel Adam L. Koshkin at Outten & Golden LLP DiscoverDACASettlement@outtengolden.com or 866-772-7338 or by accessing the Court docket for a fee, through the Court’s Public Access to Court Electronic Records (PACER) system at https://ecf.cand.uscourts.gov, or by visiting the office of the Clerk of the Court for the United States District Court for the Northern District of California, Northern District of California, Phillip Burton Federal Building and United States Courthouse, 450 Golden Gate Avenue, San Francisco, California 94102, between 9:00 a.m. and 4:00 p.m., Monday through Friday, excluding Court holidays.

DO NOT TELEPHONE THE COURT OR THE COURT CLERK’S OFFICE TO INQUIRE ABOUT THIS Settlement OR THE CLAIM PROCESS.