Consumer complaint received 2024-10-03 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: SOP Pioneer Partners LP
State: LA

Complaint narrative:
I submitted a request to Pioneer Military Credit to request the application of the Louisiana Provision of the SCRA to my loans Dear Pioneer Military Credit SCRA Customer Service, I hope this message finds you well. I am writing to formally request the application of the Louisiana Provision of the SCRA to my loan # ( XXXX ) ( XXXX ) ( XXXX ) ( XXXX ) ( XXXX ) Louisiana Statute Section 29:311 and 29:312 to my personal loan .

As you may be aware, this Louisiana law differs from the federal requirements of the Servicemembers Civil Relief Act ( SCRA ). I believe that my situation qualifies under the provisions of this specific state statute and I am seeking to have it applied to my account accordingly. 

Please let me know if any additional information or documentation is required to facilitate this request. I appreciate your prompt attention to this matter and look forward to your response. 

Thank you for your assistance. 

Pioneer Military Credit replied this below Pioneer Military Credit LLC has received your request to reduce the interest rate on your current loan offer under the federal Servicemembers Civil Relief Act, 50 U.S.C. 3937 ( SCRA ), and Louisianas Servicemembers Civil Relief and Consumer Rights Act, LA Rev Stat 29:312. Pioneer Military Credit LLC strives for the best in customer satisfaction and appreciates the opportunity to assist you.

The SCRA allows a service member to request a creditor reduce the rate of interest to six percent ( 6 % ) only for financial obligations that were incurred prior to the service member entering military service.

Louisianas interest rate cap for active-duty service members only applies to retail installment sales contracts, other contracts for the purchase of goods or services, or bonds, bills, notes, or other instruments of writing for the payment of money arising out of the contract or other transaction for the purchase of goods or services. LA Rev Stat 29:311 ( 3 ). As your loan with Pioneer Military Credit is a personal installment loan and is not in connection with the purchase of goods or services, your account does not qualify for the requested reduction in your interest rate. 

Pioneer Military Credit LLC thanks you for your service to our country. If you have any questions, please contact us at XXXX or by email at XXXX. 

Sincerely, Pioneer Military Credit I replied explaining how and why the personal installment loan does fall under Louisiana SCRA Dear Pioneer Military Credit, I appreciate your response regarding my request for an interest rate reduction under the Servicemembers Civil Relief Act ( SCRA ). However, I believe there has been a misunderstanding regarding the applicability of Louisianas SCRA provisions to my personal installment loan with Pioneer Military Credit. 

Louisiana Revised Statutes 29:311 ( 3 ) specifies that the states interest rate cap for active-duty service members applies to : > Retail installment sales contracts, other contracts for the purchase of goods or services, or bonds, bills, notes, or other instruments of writing for the payment of money arising out of the contract or other transaction for the purchase of goods or services. 



It is important to recognize that personal installment loans, though not directly tied to the purchase of specific goods or services, often serve to finance such purchases indirectly. When service members utilize personal loans to pay for various goods or services, these loans effectively become instruments of writing for the payment of money arising out of contracts for goods or services. Therefore, personal installment loans can fall within the scope of the SCRAs protections.

Key Points : 1. Broad Interpretation of Instruments of Writing : The term instruments of writing for the payment of money arising out of the contract or other transaction for the purchase of goods or services should be interpreted broadly to include personal installment loans used for such purchases. This interpretation ensures that service members are afforded comprehensive financial protections.

2. Purpose and Use of Loan : If the funds from my personal installment loan were used to purchase goods or services, this should qualify the loan under LA Rev Stat 29:311 ( 3 ). It is common for personal loans to be used for various necessary expenditures, effectively tying them to transactions for goods or services.

3. Intent of SCRA Protections : The intent of both federal and state SCRA provisions is to alleviate financial burdens on service members during active duty. Excluding personal loans, which are frequently used for essential purchases, undermines this intent.

Given these points, I respectfully request a reconsideration of my eligibility for the SCRA interest rate reduction for my personal installment loan with Pioneer Military Credit. I believe that applying the interest rate cap to my loan aligns with both the letter and spirit of Louisianas SCRA protections.

Thank you for your attention to this matter. I look forward to your favorable response. 

Sincerely,

Company response to consumer: Closed with explanation