Ninth Circuit Affirms Judgment for Students in RICO Loan Fraud Case
A federal appeals court confirmed that a California district court correctly ruled in favor of students who sued loan service providers under RICO.
The U.S. Court of Appeals for the Ninth Circuit held that the lower court's verdict supporting the students was proper. A jury had found the loan companies ran a scheme that left the borrowers with large, illegitimate loan balances. Because the plaintiffs did not discover the fraud until after the four-year limitation period, the court ruled the claims were timely. The decision upholds the students' RICO claims against the loan services.
Why it matters
The ruling confirms that borrowers can successfully use RICO to challenge deceptive loan practices within the legal time limits.
In this story
student loan fraudRICOstatute of limitationsjudgmentappeals courtloan servicesborrowers