Consumer complaint received 2022-08-04
Company: Upgrade, Inc.
State: PA
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Problem when making payments

Complaint:
I am making this complaint due to the lack of disclosure, violation of FDCPA, FCRA, TILA and PA unfair business practices act. I obtained an extension of credit through UPGRADE INC and the required disclosures and notices were not provided to me. I have an abundance of evidence of extortion, coercion, harassment and deception by UPGRADE INC via the correspondences and emails sent by UPGRADE INC. UPGRADE also violated its own arbitration clause which states if a conflict arises by me or them there would be arbitration to settle the matter, 9 U.S. Code 4 - Failure to arbitrate under agreement, instead, UPGRADE sold the account to a third party nonaffiliate without my consent. 

UPGRADE INC have shared my nonpublic personal information to multiple nonaffiliated third parties without my consent, and did not give me the opportunity to opt out of sharing my nonpublic personal information as required by the Gramm Leach Bliley Act, 15 usc 6801. there are civil and criminal liabilities for violation of the ACT as described in 15 usc 6822. 

XXXX, XXXX, XXXX and XXXX are credit reporting agencies private for-profit corporations, they are not government bureaus. The only bureau that exists is the CONSUMER FINANCIAL PROTECTION BUREAU. I did not nor did I ever give UPGRADE INC my permission to report my private personal information to any credit reporting agency. Under the TRUTH IN LENDING ACT 15 usc 1605 the finance charge in connection with any consumer credit transaction is the SUM OF ALL CHARGES. That includes all late fees, and in accordance with 15 usc 1666b a credit card ( social security number as defined 15 usc 1602L ) under an open-end credit plan can not be treated late for any purpose. Failure to provide full disclosure in a clear and conspicuous manner is a violation of the act and subjected to civil and criminal liabilities. 

According to CFPB 1016.7 and 15 usc 6802 UPGRADE INC is supposed to provide a form of opt out notice to consumers, giving me the option to opt out of reporting of private information to credit reporting agencies. UPGRADE INC have never sent a form to of opt out notice via email or postal mail It is the duty of UPGRADE INC as fiduciary/trustee of a financial institution to safeguard my nonpublic personal information and respect my right to privacy, and be in compliance with State and Federal Law. It is not a privilege to have privacy, is a RIGHT given by the Gramm Leach Bliley Act, 15 usc 6801-6828. I was not provided the required disclosure for any consumer credit transaction/contract over {$25.00} the 2 notices of my right to cancel as per the PA 73 P.S. 201-1 - 201-9.2 on the Pennsylvania Attorney General website . UPGRADE INC is actively involved in extortion by punishing me for the nonpayment of extension of credit which is a violation of the RICO act and 18 usc 892-894. Listed below are the VIOLATIONS AND ILLEGAL ACTIVITIES BY UPGRADE INC *18 U.S. Code 894 - Collection of extensions of credit by extortionate means ( a ) Whoever knowingly participates in any way, or conspires to do so, in the use of any extortionate means ( 1 ) to collect or attempt to collect any extension of credit, or ( 2 ) to punish any person for the nonrepayment thereof, shall be fined under this title or imprisoned not more than 20 years, or both.

*Pursuant to PA 73 P.S 201-7. Contracts : effect of rescission I hereby would also like to exercise my right to rescind revoke and make void all agreements, consent or permission to perform on any alleged contract/agreement given to UPGRADE INC. Also , in accordance with federal law 15 usc 1635 ( a ) UPGRADE should have provided I the consumer with two forms of cancellation explaining how to cancel and the rights to cancel at the inception of the agreement *15 U.S. Code 6802 - Obligations with respect to disclosures of personal information * ( a ) NOTICE REQUIREMENTS Except as otherwise provided in this subchapter, a financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information, unless such financial institution provides or has provided to the consumer a notice that complies with section 6803 of this title.

* ( b ) OPT OUT ( 1 ) In general A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless ( A ) such financial institution clearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, that such information may be disclosed to such third party ; *15 usc 6809 ( 4 ) states that my personal information is nonpublic information ( 4 ) Nonpublic personal information ( A ) The term nonpublic personal information means personally identifiable financial information ( i ) provided by a consumer to a financial institution ; ( ii ) resulting from any transaction with the consumer or any service performed for the consumer ; or ( iii ) otherwise obtained by the financial institution.

15 usc 6809 ( 5 ) defines nonaffiliated third party as ( 5 ) Nonaffiliated third party The term nonaffiliated third party means any entity that is not an affiliate of, or related by common ownership or affiliated by corporate control with, the financial institution, but does not include a joint employee of such institution. 

I HEREBY REVOKE RESCIND AND MAKE VOID ALL AGREEMENTS/CONTRACTS/APPLICATION GIVEN TO UPGRADE INC. I expect the contract to be terminated with any and all security interests given by me XXXX XXXX the consumer, or by operation of law. copy of email below Sale of your Upgrade Account : XXXX Hi XXXX, Upgrade would like to take the opportunity to inform you of some important information regarding your above-referenced account. Please read this announcement carefully. 
On or about XX/XX/2022, your Upgrade account was sold to XXXX XXXX XXXX XXXX Please note, the sale and assignment of your account does not alter the terms and conditions of your account or your outstanding loan through Upgrade. 
XXXX XXXX XXXX XXXX is the new servicer of your account. As a result, starting on XX/XX/2022, all payments and correspondence should be directed to : XXXX XXXX XXXX XXXX XXXX 
XXXX XXXX XXXX XXXX # XXXX XXXX, UT XXXX Any payments received by Upgrade after XX/XX/2022 will be endorsed and forwarded to the new servicer for up to 60 days. Payments received after that time will be returned to the sender. If you are using a bill payment service, please make sure you update the payment information. 
You will receive a Welcome Letter from XXXX XXXX XXXX XXXX detailing important account and contact information shortly. In the meantime, if you have any questions regarding this transfer, please contact them at XXXX or online at XXXX and speak with one of their Specialists for assistance. 
Sincerely, Upgrade Loan Servicing Team

Company response to consumer: Closed with explanation