Consumer complaint received 2025-10-10 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt was already discharged in bankruptcy and is no longer owed
Company: Upstart Holdings, Inc.
State: NJ

Complaint narrative:
XXXX XXXX XXXX is reporting a debt to credit bureaus that was DISCHARGED IN XXXX  XXXX XXXX, violating federal bankruptcy law and credit reporting requirements. 

BACKGROUND : I obtained a personal loan from Upstart XXXX XXXX in XX/XX/XXXX. I experienced financial hardship and the account charged off in late XXXX. According to Upstart, they sold this debt to XXXX XXXX XXXX on XX/XX/XXXX. 

In XX/XX/XXXX, I filed XXXX XXXX XXXX  and this debt was included in my XXXX  schedules. In XX/XX/XXXX, I received a full discharge of all qualifying debts, including this one. 

THE VIOLATION : Despite the bankruptcy discharge, my credit report shows this account is STILL being reported as : Status : " Charge Off '' Portfolio Status : " Sold To XXXX XXXX XXXX XXXX Last Reported : XX/XX/XXXX Balance : {$0.00} NO mention of bankruptcy discharge I NEVER HEARD FROM XXXX  : This is the first time I am learning that XXXX  owns this debt. I received : No collection letters or calls No communication whatsoever Yet they are reporting this discharged debt to credit bureaus as a collectible charge-off. 
LEGAL VIOLATIONS : 11 U.S.C. 524 - Reporting a discharged debt as collectible violates the bankruptcy discharge injunction Fair Credit Reporting Act - Misrepresenting the status of a legally eliminated debt Fair Debt Collection Practices Act - Falsely representing the legal status of a debt EVIDENCE I HAVE : Official bankruptcy discharge order from federal court ( XX/XX/XXXX ) Bankruptcy schedules listing this specific debt XXXX reports showing continued " Charge Off '' status with no bankruptcy notation Email from Upstart confirming they sold debt to XXXX  on XX/XX/XXXX WHAT MAKES THIS EGREGIOUS : XXXX  purchased this debt in XX/XX/XXXX I filed bankruptcy in XX/XX/XXXX ( 16 months later ) The debt was XXXX in XX/XX/XXXX XXXX  is STILL reporting it incorrectly as of XX/XX/XXXX They never notified me they owned the debt They never updated their reporting after the discharge IMPACT ON ME : Damages my credit score and creditworthiness Misrepresents my legal obligations to potential creditors Causes significant emotional distress Violates my fresh start guaranteed by bankruptcy law UPSTART 'S ROLE AND DEFLECTION : I also filed a complaint against the original creditor, Upstart XXXX XXXX, regarding their inaccurate credit reporting of this XXXX debt. 
Upstart responded by claiming they sold this debt to XXXX XXXX XXXX on XX/XX/XXXX, and " ceased reporting '' in XX/XX/XXXX. They stated it was no longer their responsibility. 

However, this response was misleading : My credit report shows this account was last updated XX/XX/XXXX - nearly 2 years after Upstart claims they stopped reporting Whether Upstart or XXXX  is currently reporting, the account still shows " Charge Off '' with no bankruptcy notation Upstart sold this debt to XXXX, but the bankruptcy discharge applies REGARDLESS of who owns the debt. Both companies have a legal obligation to ensure accurate credit reporting that reflects the bankruptcy discharge. 

I am including Upstart in this complaint because : They sold the debt to XXXX  and may have ongoing reporting obligations They failed to ensure their debt buyer reports accurately after the discharge They attempted to deflect responsibility rather than resolve the legal violation Someone is still reporting this incorrectly as of XX/XX/XXXX Both companies must be held accountable for violating my bankruptcy discharge through inaccurate credit reporting.

Company response to consumer: Closed with explanation