Consumer complaint received 2025-06-23 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: Marlette Funding, LLC
State: MD

Complaint narrative:
Dear XXXX XXXX  Complaints Team, Thank you for your response dated XX/XX/XXXX. You previously emailed me on XXXX XX/XX/XXXX to advise me that my loan is ineligible for the 6 % rate reduction under the Federal Servicemembers Civil Relief Act, which I was not requesting, I was requesting the protections offered under Louisiana SCRA. 

On XXXX XX/XX/XXXX you responded to a complaint I filed with Consumer Financial Protection Bureau ( CFPB ) on XXXX XX/XX/XXXX. I filed this complaint on the advice of my lawyer which I consulted on XXXX XX/XX/XXXX. I appreciate your investigation into my request for an interest rate reduction under the Louisiana Servicemembers Civil Relief Act ( La. SCRA ). However, I respectfully dispute the conclusion that my XXXX XXXX Personal Loan does not qualify as an obligation under Louisiana law and request reconsideration based on a broader and more equitable reading of the statute. 

At the time of signing the loan agreement on XXXX XX/XX/XXXX, I did so under the good faith belief that SCRA protections, Louisiana-specific, would apply to this loan, as they have consistently been honored by other lenders in similar circumstances. My signature was given with the understanding that Louisiana SCRA would apply, which is why on the same day it was funded XXXX XX/XX/XXXX, I submitted my request XXXX XX/XX/XXXX. 

Your letter cites Section 293:311 ( 3 ) of the Louisiana Revised Statutes, which defines an obligation as any retail installment sales contract, other contract for the purchase of goods or services, or bond, bill, note, or other instrument of writing for the payment of money arising out of a contract or other transaction for the purchase of goods or services. My loan qualifies under this statute for several reasons : Broad Legal Interpretation of Services : A personal loan extended for the purpose of consolidating debt, managing expenses, or financing necessary life events while on XXXX XXXX fits within the definition of a financial service. XXXX XXXX  markets its loans as a form of financial service that provides flexible, unsecured borrowing to customers. This service is rendered under a contract, in exchange for interest and fees. Therefore, the agreement between myself and XXXX XXXX constitutes an instrument of writing for the payment of money arising out of a service transaction. 

Commercial Purpose is Not Required : The statute does not require the obligation to be tied to the purchase of tangible goods or specific commercial services. The statute clearly includes other contract [ s ] for the purchase of goods or services, without limiting this to retail or commercial transactions. By this definition, personal loans, such as the one I entered into, are not excluded, particularly when the loan itself forms part of a broader set of consumer services offered by your company. 

Legislative Intent Supports Servicemember Protection : The spirit and intent of the Louisiana SCRA align with that of the federal SCRA : to protect servicemembers from financial hardship while serving. A narrow reading that excludes unsecured personal loans, even when originated during XXXX XXXX, undermines this purpose. I was on XXXX XXXX at the time of loan origination, and it is precisely these circumstances that the law was designed to address. 

Equitable and Consistent Treatment : Multiple other lenders have honored Louisianas SCRA protections for similar loans I have incurred while serving. XXXX XXXX denial creates an inconsistent standard of application that effectively penalizes servicemembers based solely on the lenders interpretation, rather than the laws intent or the servicemembers circumstances. 

Public Policy Consideration : Finally, personal loans taken out while on XXXX XXXX are often a response to financial stress associated with military service. Denying servicemembers the protections of the SCRA on the basis that the obligation isnt narrowly transactional ignores the very real and service-connected nature of these financial decisions. Upholding the interest rate cap in such cases strengthens public trust in lenders and honors the service of our military members. 

For these reasons, I respectfully ask XXXX XXXX to reconsider my eligibility for interest rate reduction under the Louisiana Servicemembers Civil Relief Act. 

Thank you for your time, and I look forward to your reconsideration. 

Sincerely,

Company response to consumer: Closed with explanation