Truist Unit Sued Over DACA Loan Denial

Deferred Action for Childhood Arrivals, or DACA, was introduced by the Obama administration in 2012 to shield eligible undocumented immigrants from deportation and grant work authorization. The case tests whether lenders may exclude applicants based on citizenship or immigration status and could expose financial institutions to liability under Section 1981 of the Civil Rights Act of 1866, which protects equal rights in contracting.

Oscar Guillén Arauz, a Honduras-born man who has lived in the United States since age 2, alleges Sheffield Financial denied his 2024 application to finance a motorcycle from Matt's ATV & Offroad in Tulsa, Oklahoma, despite his above-average credit score. He filed a proposed class action against Truist Financial, doing business as Sheffield Financial, and the dealership in the U.S. District Court for the Northern District of Oklahoma on June 18, 2026. Neither the requested loan amount nor a damages figure was disclosed.