Consumer complaint received 2020-07-29
Company: Upstart Holdings, Inc.
State: FL
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Problem when making payments

Complaint:
In XX/XX/XXXX, I applied for a personal loan in order to consolidate other bills. I was approved but had some doubts and called Upstart a couple more times before actually signing. I wanted to confirm that I could make extra payments that would be added to the principle. I was assured that this was the case and with some trepidation, I signed the papers. The first month was fine. I paid {$490.00} and my actual monthly payment is {$450.00}. Since then, not only have they not applied any of my extra payments to the principle but they are adding more money to their interest amounts and these amounts differ from the amortization schedule. I have not been late or missed a payment since I began paying in XXXX, even paying some extra but it seems that the more I pay, the more they apply to the interest. The amortization schedule shows that the interest gets adjusted each month with the interest getting higher and the money that should go to principle lower. 

I spoke to a supervisor named XXXX today ( XX/XX/XXXX ) whom when I asked why the amounts on the amortization schedule were higher from the actual amount added to interest, stated that those amounts are based on the payment being made on the due date ( XXXX ). I proceeded to point out that if that were true why was the actual interest taken higher ( {$250.00} ) and the principle amount lower ( {$200.00} ) on the XXXX payment ( {$460.00} ) which I made on the XXXX. He then said that it was because I made my XXXX payment on the XXXX of the month ( a day early ) rather than the XXXX ( the due date ). 

According to the amortization schedule, XXXX interest amount was {$240.00} and the amount towards principle was stated as {$200.00} based on the monthly payment of {$450.00}. 

I have made many calls ( XX/XX/XXXX, XX/XX/XXXX ( 2 calls ), XX/XX/XXXX, XXXX ( 3 calls ), XXXX, XXXX ( 3 calls ) XX/XX/XXXX ( 2 calls ) XX/XX/XXXX, XX/XX/XXXX ) to Upstart trying to make them understand that something is not right and numbers don't lie. They are increasing their interest based on how much more I pay so that, it seems, they keep me in debt with this loan for the full five years while simultaneously taking more in interest than originally stated and meanwhile my outstanding principle is the same amount as the amortization schedule to date. 

I also applied for help in XXXX due to Covid and they offered me two options both of which included adding over {$1000.00} in interest and placing a negative remark on my credit report. Not helpful to me. I did not accept it and since they don't send me anything showing how much interest they have been paid so far, I don't know if they have added the extra {$1000.00} + to my account. 

I even tried to split the payment in XXXX after speaking to a representative at Upstart who suggested it. I paid {$250.00} on XX/XX/XXXX and {$250.00} on XX/XX/XXXX. The interest applied on the XXXX was ( {$180.00} ) Principle ( {$66.00} ) and on the XXXX, interest ( {$150.00} ) principle ( {$93.00} ). I paid a total of {$500.00} and {$160.00} was applied to the principle. 

I want to pay my bills and I want to keep my credit as clean as possible but Upstart is making it hard for me with their unethical practices. They are robbing me blind and blaming it on the daily interest accumulation.

Company response to consumer: Closed with explanation