Consumer complaint received 2025-03-22 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Payday loan
Issue: Charged fees or interest you didn't expect — 
Company: Marlette Funding, LLC
State: NJ

Complaint narrative:
Formal Complaint XXXX XXXX / XXXX XXXX XXXX  XXXX XXXX XXXX, XXXX Product : Personal Loan Company : XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX, XXXX Account Number : XXXX Loan Amount : {$6700.00} Loan Start Date : XX/XX/XXXX Consumer Name : XXXX XXXX XXXX XXXX Address : XXXX XXXX XXXX, XXXX XXXX, NJ XXXX Email : XXXX Phone : XXXX Nature of the Complaint : I am submitting this complaint due to serious discrepancies, abusive practices, and lack of transparency regarding a personal loan I received from XXXX XXXX XXXX through XXXX XXXX, which is currently serviced by XXXX XXXX, XXXX. 

1. Discrepancy between the Loan Agreement and the TILA Disclosure : My signed loan agreement states a fixed interest rate of 18.99 %. 

However, the Truth in Lending Disclosure Statement ( TILA ) lists an APR of 23.53 %, which significantly inflates the actual cost of the loan.

This discrepancy was not clearly explained or disclosed in a transparent way prior to accepting the loan and may represent a violation of the Truth in Lending Act ( 15 U.S.C. 1601 ).

2. Excessive and misleading fees : A {$400.00} origination fee was deducted from the loan proceeds without clear consent or prior explanation, reducing the amount actually received and adding interest to that fee.

Over time, this greatly increased the effective cost of the loan. 

3. Incoherent and inflated loan balance : After making regular payments for over three years, the loan balance remains high.

As of XX/XX/XXXX, the balance is {$960.00}, and in one statement, it reached {$1700.00} even after a {$120.00} payment, which is illogical and indicates improper or deceptive loan servicing. 

4. Phone harassment : I received between 3 to 5 phone calls per day on multiple occasions.

I have screenshots of my call logs showing this pattern of excessive and repetitive contact. 

This violates the Fair Debt Collection Practices Act ( FDCPA, 1692d ) which prohibits harassment or abuse through repeated phone calls.

5. Abuse when making partial or early payments : Whenever I made partial or early payments, the company still charged the full monthly installment.

In several cases where I paid the equivalent of two monthly payments, my balance and schedule remained unchanged, showing no credit toward principal or future months.

This behavior is not only abusive but potentially fraudulent, as it appears to deliberately maximize interest and fees, contrary to the purpose of early or extra payments. 

6. Unclear payment application structure : The company applies payments first to fees, then to interest, and lastly to principal, which extends the loan unnecessarily and inflates interest costs, even when the borrower is attempting to pay responsibly.

I request the CFPB to : Conduct a full audit of my loan and how each payment was applied.

Determine whether the company violated TILA, the FDCPA, or the New Jersey Consumer Fraud Act ( N.J.S.A. 56:8-1 et seq. ).

Order a correction of the remaining balance if errors or abusive practices are confirmed.

Require the company to stop any form of phone harassment and provide written notice of resolution. 

Provide appropriate compensation for emotional distress, financial harm, and unlawful practices. 

Investigate whether XXXX XXXX XXXX XXXX XXXX systematically engages in predatory lending and servicing behavior.

Company response to consumer: Closed with non-monetary relief