Suit accuses Wells Fargo of denying student loans to immigrants

A federal lawsuit on Monday accused Wells Fargo of illegally denying student loans to young immigrants who are protected from deportation and allowed to work and study in the U.S. under a program created by former President Barack Obama.

The young immigrants have Social Security numbers and documents that meet bank requirements for identification, but Wells Fargo refuses to give them loans based on their citizenship status, according to the lawsuit from the Mexican American Legal Defense and Educational Fund, based in Los Angeles.

Banking experts say financial institutions can face unique challenges getting repaid by borrowers who are not in the country permanently, including potential difficulty in accepting payments from foreign banks.

The lawsuit comes amid concern among immigrant groups that President Trump will cancel the deferred action program as part of a broader effort to control immigration.

Obama created program by executive order in 2012, providing temporary protection for immigrants brought to the United States by their parents before the age of 16 and who live in the country without authorization.

Under the program, recipients receive a Social Security number, allowing them to work, pay taxes, study and travel for a two-year period.