Consumer complaint received 2025-01-29 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem when making payments — 
Company: UPGRADE, INC.
State: TX

Complaint narrative:
Dear CFPB Representative, I am submitting this formal complaint against Upgrade , Inc. for multiple violations of federal and state consumer protection laws. Despite my numerous good-faith attempts to resolve these issues, Upgrade has failed to comply with lawful requests, leading to unfair, deceptive, and unlawful practices. 

Dates and actions taken : XX/XX/XXXX : Called to ask for a copy of the contract with signature : This call has been recorded for evidence : I asked for a copy of the contract with evidence of executed signatures since I signed without prejudice. I was advised that they could not provide this and could only furnish the generic copies without verifiable signatures. 

XX/XX/XXXX : Called to ask for purchase order agreement for the alleged loans. 
This call was recorded for evidence. This request was denied. The representative advised me that they could not provide this document to consumers. 

XX/XX/XXXX : Called to ask for a copy of the contract with signature. 
I have a recording of the call advising the representative that I always sign all my contracts without prejudice to avoid waiving my consumer rights and I needed a copy of this version of the contract. I was advised by the representative that they could not furnish this to me. I advised the representative that I did not waive my Texas Common Law rights per the contract terms. 

XX/XX/XXXX : Sent Correspondence # XXXX : Amended Contract, Revocation of POA and Replacement Durable POA, tender of payment in full for {$48000.00}. 

UPGRADE LEGAL DEPT : CERTIFIED MAIL ( Delivered/Received XX/XX/XXXX ) UPGRADE PAYMENT PROCESSING : CERTIFIED MAIL ( Delivered/Received XX/XX/XXXX ) o Payment notification letter o COPY- Endorsed Negotiable Instrument o COPY- Payment processing instruction letter sent to XXXX & XXXX of XXXX XXXX XXXX XXXX Revocation of POA o Copy of POA XXXX XXXX XXXX LEGAL DEPT : CERTIFIED MAIL ( Delivered/Received XX/XX/XXXX ) XXXX- XXXX XXXX REGISTERED MAIL ( Delivered/Received XX/XX/XXXX ) XXXX XXXX XXXX : REGISTERED MAIL ( Delivered/Received XX/XX/XXXX ) XX/XX/XXXX : Upgrade called in response to the letters sent XX/XX/XXXX : This call was recorded for evidence : I advised the representative that they were receiving a copy of all communications sent including the tendered payment sent directly to XXXX  XXXX XXXX  and several representative. I advised the caller that the payment was sent to CRB since there were no instructions on Upgrade for how to submit endorsed negotiable instruments as tender of payment. I advised the Upgrade representative that the payment was sent directly to the alleged lender and the caller accepted the statement without dispute. 

XX/XX/XXXX : Notice of Breach of Contract- Civil Money Penalty Letters sent The sent instrument ( tendered payment ) was ignored. I contacted XXXX XXXX, the Chief Investment Officer and he pretended to be an AP Clerk and denied knowing anything about how to process a negotiable instrument. Since he handles SEC filings, this seems unlikely. I called the legal department several times to confirm receipt but no one ever returned my calls. 
CRB, XXXX XXXX Certified Mail Received XX/XX/XXXX CRB, XXXX XXXX Certified Mail Received CRB, Legal Dept Certified Mail Received XX/XX/XXXX : Upgrades Emailed Response : XX/XX/XXXX : Upgrade responded by email stating they were rejecting the amended contract. 
XX/XX/XXXX : I advised Upgrade that I will be pursuing legal remedy if denied an agreement with valuable consideration. 
XX/XX/XXXX : I responded to Upgrades email advising them that they can not reject the amended contract unless they can furnish the original contract verifying that the contract was not unilateral. I advised Upgrade that the other signer must be disclosed and if they could furnish proof that the contract was signed by XXXX parties, then they may be able to reject the amendments. Upgrade refused to respond. 

XX/XX/XXXX : Called Upgrade Confirming Upgrades Policy on Ink Signature Contracts : This call was recorded as evidence : The representative stated that Upgrade will refuse to conduct business with consumers if they refuse to sign a contract via e-signature. I advised the representative that this was against the law in Texas because Texas consumers have the right to request the option of signing a contract with a pen. The employee stated it was Upgrades policy. I asked if the company policy is superior to law. The representative stated that they will not allow customers to download a contract to sign with a pen. 

XX/XX/XXXX : Sent Debt Validation Letter Upgrade Legal team sent XX/XX/XXXX Certified Mail DELIVERED XX/XX/XXXX XXXX XXXX XXXX  Legal team sent XX/XX/XXXX Certified Mail Delivered XX/XX/XXXX : Sent Verification and validation requirements letter Upgrade Legal Team sent XX/XX/XXXX Certified Mail Delivered XX/XX/XXXX XXXX XXXX XXXX Legal team XX/XX/XXXX Certified Mail Delivered XX/XX/XXXX XX/XX/XXXX : Sent the next letter- Opportunity to Cure- Notice of Escalation of Civil Money Penalty ( Notice of Default Opportunity to Cure ) Upgrade Legal Team Sent XXXX Certified Mail received XXXX XXXX XXXX XXXX Legal Team sent XXXX Certified Mail Delivered XX/XX/XXXX XX/XX/XXXX : Upgrade called to advise of past due balance : This call was recorded for evidence : I advised the caller that I needed to put the account in billing error since I submitted a legal tender of payment and Ive been attempting to perform ; however all my efforts were being ignored. The called stated they could not put my account in billing error or dispute status. 

XX/XX/XXXX : Received from Upgrade : XXXX separate duplicate generic letter with copies of irrelevant documents not requested, including an unauthenticated or non-original contract without any signatures. 

XX/XX/XXXX : I called Upgrade to request the opportunity to dispute or put the account in billing status : This call was recorded for evidence. The employee advised me that they do not allow customers to dispute anything unless it's about a dispute with the contractor. I was advised that I would have to litigate and they would report my non-payment to the credit bureaus. I explained to the representative all the correspondences I sent and advised the representative of all the requests I made and he admitted that all my requests are noted as rejected in the system. 

XX/XX/XXXX : I called Upgrade and asked who had the original promissory note/contract : I asked the representative if Upgrade sold the note or if they had the original note. I was advised they dont have it and that legal may have it. I asked to speak with someone in legal, and was denied. All representatives I spoke with had no idea who owned the note or where it was and stated that no one at Upgrade had the note. I asked if it was sent to XXXX XXXX XXXX  and they were unable to confirm where the original contract was located. 

XX/XX/XXXX : Sent Final Notice of Intent : Escalation and Reporting to Regulatory Board Escalation & Reporting to Regulatory Boards Sent invoice to both parties Upgrade Legal Team Sent 1-27-25 : Certified Mail Cross River Bank Legal Team sent 1-27-2025 Certified Mail Violations Reported : XXXX. Violation of the Truth in Lending Act ( TILA ) ( XXXX XXXX. XXXX et seq. ) Upgrade failed to fully disclose the terms and conditions of the credit agreement, including changes in balance calculations and interest rate applications. The alleged loan TILA statement was for {$79000.00} even though the actual alleged loan was for {$49000.00}. 
The company failed to provide a full accounting of the alleged debt and omitted key financial information, including the proper application of payments. 

XXXX. Violation of the Fair Credit Billing Act ( FCBA ) ( XXXX XXXX. XXXX ) On XX/XX/XXXX, I tendered a lawful negotiable instrument, specifically an endorsed Bill of Exchange, as full payment for the alleged debt. This payment was sent to XXXX XXXXXXXX XXXX XXXX XXXX  ) for processing, as XXXX  is responsible for handling these particular payments. 
Upgrade was provided a copy of this correspondence for transparency. However, despite being informed that the debt had been settled, Upgrade continued collection efforts, including threats of negative credit reporting.

Upgrade refused to allow the account to be placed into " billing error '' status or acknowledge the disputed payment despite several requests. 

XXXX. Violation of the Fair Debt Collection Practices Act ( FDCPA ) ( XXXX U.S.C. XXXX et seq. ) Upgrade continued to attempt to collect on a debt that had been disputed and for which a valid payment had been tendered. 
Despite repeated requests, Upgrade refused to validate the debt per FDCPA requirements.

Collection actions taken by Upgrade while ignoring a disputed transaction violate XXXX XXXX. XXXX ( XXXX ), which prohibits false credit reporting. 
XXXX. Breach of Contract and Unfair Business Practices Upgrade denied my right to amend the agreement despite my status as the sole signatory. 
They failed to provide a countersigned contract or evidence of a two-party agreement, effectively rendering the contract unilateral and void under contract law. 
The company falsely claimed that consumers can not sign contracts with wet ink, a policy that directly contradicts Texas state contract law. 

XXXX. Violation of the Uniform Commercial Code ( XXXX ) Negotiable Instruments XXXX XXXX ( Enforcement of Lost, Destroyed, or Stolen Instruments ) Under UCC XXXX XXXX a party attempting to enforce a promissory note must prove possession of the original note or provide a valid legal reason for its loss.

Upgrade has failed to produce the original note, meaning they lack standing to collect on the debt.

If Upgrade does not hold the note but continues collections, they are attempting to enforce a debt without proper authority. 
XXXX XXXX ( Presentment ) I demanded proof of the original negotiable instrument ( such as the original promissory note ), and Upgrade advised me that they were unable to furnish the proof. 
Failure to prove possession of the original promissory note invalidates any claim of debt and enforcement. 
XXXX XXXX ( Tender of Payment & Discharge ) Upgrade was unable to produce the note, they can not prove that the obligation has not already been discharged. 
I have attached all supporting documentation, including recorded phone calls, my original correspondences, debt validation requests, contract amendment notices, and proof of Upgrades failure to comply with federal and state laws. 
Thank you for your time and attention to this matter. I look forward to your prompt action.

Company response to consumer: Closed with explanation