Consumer complaint received 2024-07-25
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Upgrade, Inc. (MO)

I am submitting this complaint to highlight the inaccurate data reflected on my credit report due to the actions of UPGRADE INC, with account number ending in XXXX, and the credit bureaus XXXX, XXXX, and XXXX. 
Under 15 U.S. Code 1681, Congress underscores the importance of accuracy and fairness in credit reporting, emphasizing consumer privacy. Consumer reporting agencies are mandated to establish procedures that protect the confidentiality and relevancy of consumer information. The erroneous data on my credit report represents a breach of these obligations, adversely affecting my creditworthiness. Specifically, 15 U.S. Code 1681a ( d ) ( 2 ) ( A ) ( i ) clarifies that a consumer report should not include information solely related to transactions or experiences between the consumer ( myself ) and the entity ( UPGRADE INC ) providing the report. Therefore, XXXX, XXXX, and XXXX should not include payment history, including late payments and utilization details, in their reports, as this information pertains to transactions or experiences confined to the relationship between myself and UPGRADE INC . 
Additionally, under IRS rules, a charge-off is treated as gross or ordinary income, which is not permissible for inclusion on a consumer credit report. Importantly, I have never received a 1099-C form, which is required for the reporting of canceled debts as income. Thus, the reporting of charge-offs or account cancellations on my credit report is inaccurate, and I request their removal.

Under 15 U.S. Code 1681b ( a ) ( 2 ), consumer reporting agencies are permitted to furnish a consumer report only in accordance with the written instructions of the consumer. Neither the financial institution nor the consumer reporting agencies XXXX, XXXX, and XXXX have my written consent to furnish this information. All forms of consentwhether verbal, non-verbal, written, or impliedhave been explicitly revoked. According to 12 CFR 1022.3, identity theft is defined as fraud committed or attempted using another persons identifying information without authorization. Therefore, any information added to my credit report without my written consent could be considered identity theft, and I demand its immediate removal. 
Per P.L. 90-321 ( 82 Stat. 146 ), only the head of a State or local child support enforcement agency or an authorized official can request a consumer report. Any access to my credit report outside these parameters, without my consent, is unlawful and should be promptly corrected.

15 U.S. Code 1681c prohibits consumer reporting agencies from including adverse items in consumer reports, other than records of criminal convictions older than seven years. This prohibition covers late payments, charge-offs, collections, and any other negative entries. Furthermore, under 15 U.S. Code 1681e, consumer reporting agencies are required to maintain reasonable procedures to ensure that consumer reports are used only for permissible purposes as outlined in section 1681b and to guarantee the accuracy of the information as per section 1681c. These agencies must verify the identity of users and ensure that information is not used for unauthorized purposes. By failing to comply with these standards, including the unauthorized inclusion of information and improper purposes for which consumer reports are furnished, the agencies are in direct violation of their compliance obligations. I demand that these agencies immediately rectify these violations and take corrective action to align with the legal requirements.

According to 15 U.S. Code 1681s-2 ( a ) ( 1 ) ( A ), UPGRADE INC is prohibited from furnishing any information relating to me to any consumer reporting agency if it knows or has reasonable cause to believe that the information is inaccurate. This provision underscores that inaccuracies in the information provided by UPGRADE INC should not be reflected in my credit reports maintained by XXXX, XXXX, and XXXX. 
The violation of privacy under the Privacy Act of 1974 is glaringly evident in this situation. According to the Act, a " record '' includes any item of information about an individual maintained by an agency, such as consumer reports, which encompasses personal details like financial transactions and identification data. The Act mandates that no agency may disclose such records without the individual 's prior written consent, except under specific conditions outlined in section 3711 ( e ) of title 31, which pertains to government claims and requires stringent compliance assurances from consumer reporting agencies. Despite these clear stipulations, the consumer reporting agencies involved have blatantly disregarded these requirements by disclosing my personal information without proper authorization. This constitutes a severe breach of both the Fair Credit Reporting Act and the Privacy Act of 1974. The failure to secure my explicit consent and the unauthorized dissemination of my records not only infringes upon my privacy rights but also exposes these agencies to significant legal and financial consequences. 
The blatant disregard for consumer privacy evidenced by these financial institutions is a clear violation of multiple regulations designed to protect personal information. Under 12 CFR 1016.1, financial institutions are mandated to provide clear and conspicuous privacy notices and establish reasonable methods for consumers to opt out of information sharing. This includes ensuring that any disclosure of nonpublic personal information to nonaffiliated third parties is done only with the consumer 's explicit consent and through clearly outlined opt-out procedures, as detailed in 12 CFR 1016.4 and 1016.7. These regulations require that consumers are given straightforward options to prevent their information from being shared and that their opt-out requests are honored promptly. The failure to provide an obvious and accessible means to exercise these rights is not only a regulatory breach but a direct infringement of my privacy rights under the law. 
Additionally, 15 U.S. Code 6802 reinforces the obligation of financial institutions to notify consumers about the potential for their nonpublic personal information to be disclosed to nonaffiliated third parties and to offer a clear opt-out mechanism prior to such disclosures. The failure to adhere to these requirements by not providing an explicit opt-out option and not honoring my requests for nondisclosure is a serious violation of the Privacy Act of 1974. This negligence undermines the very foundation of consumer protection laws designed to safeguard personal financial information. The institutions in question have not only neglected to deliver the required opt-out notices but have also ignored the necessity of providing a reasonable and accessible means for consumers to exercise their opt-out rights. 
I hereby formally opt out of any and all disclosures of my nonpublic personal information to nonaffiliated third parties. This includes, but is not limited to, charge-offs, payment history, account balances, and any other financial transactions or personal data. This opt-out request is effective immediately and shall remain in effect until explicitly revoked by me in writing. 
I would like to bring to your attention that I sent a formal opt-out letter to UPGRADE INC about 6 months ago, in which I explicitly revoked all authorizations, both written and unwritten, for the disclosure of my information to nonaffiliated third parties, including credit bureaus like XXXX, XXXX, and XXXX. This letter was sent pursuant to my rights under 15 U.S. Code 6802, and I have yet to receive a response from the creditor. Their failure to acknowledge and act upon this request constitutes an agreement through acquiescence to my terms of opting out. I will be providing a copy of this letter and the return receipt, as evidence of my attempts to enforce my privacy rights and the creditors noncompliance. 
Under 15 U.S. Code 1681n, the law mandates accountability for willful noncompliance with credit reporting requirements. Any organization that deliberately fails to adhere to these regulations is liable to the consumer for damages, including a minimum of {$1000.00} per violation. This provision highlights the severity of willful misconduct. If the violation is proven to be intentional, which I believe is, the offending party faces substantial financial penalties. Multiple infractions or patterns of noncompliance further increase liability. Given that these companies have acknowledged their commitment to legal compliance in their consumer agreements, their repeated violations, especially after notification, demonstrate a blatant disregard for legal standards and consumer rights. Such willful neglect is both unlawful and financially punitive under this statute. 
In reviewing the serious infractions outlined, it is clear that there have been at least seven distinct violations of credit reporting and privacy laws, each contributing to a total potential liability of approximately {$7000.00} in statutory damages. However, the impact extends far beyond mere statutory fines. The financial, emotional, employment impact, insurance costs, inconvenience and time, loss of opportunities, and health costs have been substantial. These cumulative damages amount to approximately {$100000.00}, reflecting the severe and multifaceted impact of the violations. I request the immediate deletion of the account from the credit report, compensation of {$1000.00} per violation, and additional damages suffered. Immediate corrective actions are necessary to address these issues and provide appropriate compensation for the extensive harm suffered. 
In light of the violations outlined, I am formally submitting this complaint to the Consumer Financial Protection Bureau ( CFPB ). As stipulated under 15 U.S. Code 6805, it is the Bureau 's responsibility to enforce compliance with these laws. This includes ensuring that all relevant parties, including UPGRADE INC and the credit bureaus XXXX, XXXX, and XXXX, adhere to the regulations and correct any breaches. I expect the CFPB to take appropriate action to rectify these violations and uphold consumer rights as mandated by law.