Kay F. Millard v. United Student Aid Funds, Inc., an Indiana Corporation and Superior Credit Service, Inc., an Indiana Corporation

Good Law
66 F.3d 252·95 Daily Journal DAR 12738·1995 WL 559923·1995 U.S. App. LEXIS 27150·95 Cal. Daily Op. Serv. 7433
United States Court of Appeals for the Ninth CircuitSeptember 22, 199594-35490California561 words

Opinion

Opinion

Wright, J.

We must decide whether 20 U.S.C. § 1091a(a)(2)(B), which retroactively abrogates time-bars on the collection of student loans, applies to Kay Millard’s loans. We hold that the statute does apply to the loans at issue.

The court granted defendants’ motion for summary judgment. We have jurisdiction pursuant to 28 U.S.C. § 1291 and affirm.

I

In 1967, Kay Millard obtained two student loans, each for $1,000, from the First National Bank. United Student Ad Funds (“USA Funds”), a private agency, provided and processed the application, prepared notes for Millard’s signature and guaranteed the loans. After Millard defaulted in 1969, USA Funds paid on the guaranty.

In 1991, Congress retroactively abrogated statutes of limitations on the collection of student loans. 20 U.S.C. § 1091a. USA Funds then assigned Millard’s loans to Superior Credit Service (“Superior Credit”) for collection.

When USA Funds and Superior Credit attempted to collect on the loans, Millard sued them, claiming violations of the Fair Debt Collection Practices Act (“FDCPA”). She alleged primarily that USA Funds and Superior Credit misrepresented that collection of the loans was not time-barred. The court granted…

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