Guracar

I. BACKGROUND

A. The Loan at Issue and Guracar’s Default In December 2007, Guracar was a law student at Lincoln Law School in San José, and he took out a private student loan from Bank of America, N.A. (Bank of America) for $7,000. The loan required Guracar to make 240 monthly payments of $77.82. An associated credit agreement required Bank of America to send monthly statements showing “the Monthly Payment Amounts and the monthly due dates.” The agreement also contained an acceleration clause granting the bank the option, if Guracar failed to 2 make a payment, to accelerate repayment of his loan by providing notice that “the whole outstanding principal balance, accrued interest, and all other amounts payable . . . are due and payable at once.” Beginning in January 2009, Guracar made payments on his loan, but he stopped in August 2009 because he could no longer afford the payments. In January 2010, Bank of America charged off $8,288.53 in principal, interest, and other amounts on Guracar’s loan. B. The February 2010 Letter In February 2010, several weeks after charging off Guracar’s loan, Bank of America sent, and Guracar received, a letter. The letter listed the balance on…