Judge Arthur Spatt
HICA Education Loan Corp. is incorporated in South Dakota. Three promissory notes that Feintuch signed in the 1980s pursuant to the statutory and regulatory provisions of the Health Education Assistance Loan program were sold, transferred and assigned to HICA by the Student Loan Marketing Association, commonly known as Sallie Mae. Feintuch contended that in May 2012, through Sallie Mae’s automated phone system, he obtained a forbearance on all his student loans. The court granted Feintuch’s motion to vacate a Dec. 17, 2012, certificate of default entered in connection with HICA’s action to enforce Feintuch’s debt. The three considerations outlined in Pecarsky v. Galaxiworld.com, favored vacatur. Feintuch’s default was not willful as it was occasioned by the recent passing of his elderly fatherwho had lived with Feintuch and his wifeand serious medical issues involving his then three year old daughter. Further Feintuch presented a meritorious defense grounded on his alleged May 2012 forbearance agreement for the promissory notes at issue. Noting the two week delay between entry of default and Feintuch’s vacatur motion, the court found that HICA would not be prejudiced by vacatur.
