Tzedek DC celebrates the federal government’s actions to end the inclusion of credit history and credit scores in evaluating immigrants that had previously been mandated under the Public Charge Rule promulgated by the U.S. Department of Homeland Security (DHS).
Tzedek DC was one of a number of consumer, anti-poverty, and civil rights groups that sued the DHS over the Public Charge Rule. In particular, we opposed a provision requiring immigration officials to consider an immigrant's credit report and credit score in the determination of whether an immigrant is likely to become a “public charge,” and therefore could by law be denied lawful permanent residency or some visa applications to the United States.
Credit scores only measure a borrower’s likelihood of repaying on a credit obligation—they do not reveal the most important determinant of whether an immigrant is likely to become a public charge, (i.e., the person’s current and future income). Credit reports and credit scores are also subject to a high rate of errors. For these and other reasons, Tzedek DC and our allies argued that credit scores are an especially poor indicator of an immigrant or their family’s long-term earning and self-reliance potential.
President Biden’s recent Executive Order recognizes that it is “essential to ensure that our laws and policies encourage full participation by immigrants, including refugees, in our civic life; that immigration processes and other benefits are delivered effectively and efficiently; and that the Federal Government eliminates sources of fear and other barriers that prevent immigrants from accessing government services available to them.”
In keeping with that commitment, DHS has as of March 10, 2021, announced that it no longer will defend or implement the challenged provisions of the Public Charge Rule. This change in policy restores the approach that previously has been in place since 1999 under which DHS will not consider a person’s credit score as part of the public charge determination.
Tzedek DC President and Director-Counsel Ariel Levinson-Waldman said:
We applaud the Biden Administration for this this major step forward in ending a rule that created fear and imposed undue barriers to our immigrant neighbors and client community members who are in pursuit of legal status. We especially appreciate the outstanding work done on the issue by Tzedek DC Staff Attorneys Josh Levin and Linda Coe and pro bono litigation counsel Harvey Reiter and colleagues at Stinson LLP.
About Tzedek DC
Drawing from the Jewish teachings of “Tzedek, tzedek tirdof,” or “Justice, justice you shall pursue,” Tzedek DC’s mission is to safeguard the legal rights and financial health of DC residents with low incomes dealing with the often devastating consequences of abusive debt collection practices and other consumer-related issues.