Consumer complaint received 2022-10-12
Company: Upgrade, Inc.
State: MD
Product: Checking or savings account
Sub-product: Checking account
Issue: Opening an account
Sub-issue: Unable to open an account

Complaint:
I attempted to open a checking account with Upgrade last month and provided all the necessary documents that were asked of me : a photo of my drivers license, three selfies taken from three different angles, etc. Even though I had received an email stating no further documents were required, I received an email stating I needed to speak with Upgrade. It turns out they used a disconnected landline phone number on my credit report instead of my cellphone number, which I listed on the Upgrade checking account application. They claim that the disconnected landline number was a credible number by which they could verify my identity. I told them I had recently moved and disconnected my landline. I dont know why XXXX ( their source for my credit profile ) didnt have my cellphone listed at the time. When I applied for this checking account, nothing in the fine print stated that they would be using a phone number on my credit report to verify my identity. The only way I could finish setting up my account, according to a supervisor, was to take a selfie of me holding a piece of paper with my Upgrade checking account number on it. I refused, stating that my identity had been stolen twice in the last two years. The other option I was given was to call XXXX to update my phone number. That I did. However, when I called Upgrade to tell them my cellphone number is listed on my credit file, they told me I would have to re-apply for a checking account because they could only do a soft credit check on me once. I offered to send them a screenshot of my credit report with my cellphone number on it to expedite the process. I stated that I felt I was being XXXX discriminated against because the selfies I submitted shows I am a XXXX woman. I am also currently unemployed. Nothing in their fine print or policy stated that I would have to undergo these excessive and intrusive means of proving my identity. I already provided the documents they required but it seems like its not enough. I asked for any written policy that proves that they would impose these same requirements on applicants similarly situated as me. If I withdraw my application, I am concerned that my image and likeness ( photos plus a photo of my drivers license ) can be stolen and sold on the Dark web by bad actors. My only recourse is to finish the process and open this checking account so I can have some control over my identity data. Also, when I applied for an Upgrade checking account, I was to receive XXXX points from XXXX, which was the only incentive for me to bank with Upgrade. I stand to lose these points ( if I havent already ) if I re-apply. 

Again, nothing on their website or terms and conditions states that the identity of the applicant would have to be verified through a phone number listed on a credit report and not the application itself. It also didnt state that I would have to take a selfie holding up my checking account number on a piece of paper, which would make me vulnerable to identity theft should an unscrupulous employee download that photo. I have never experienced this with any other online-only banking or fintech institution and every time I asked for a copy of the company rules that prove that what is being asked of me is across-the-board and in good faith, they could not provide one.

Company response to consumer: Closed with explanation