Consumer complaint received 2024-08-27 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: Upstart Holdings, Inc.
State: CO

Complaint narrative:
Subject : Notice of Dispute- Inadequate Notice and Misleading Credit Extentsion Practices To Whom it may concerns, I am writing to formally dispute the handling and reporting of my account with your institution. I have identified signifigant issues regarding the lack of proper and adequate notice provided to me, as well as deceptive practices related to the extenstion of credit. I have discovered that your company has engaged in actions that are both unfair and deceptive, which has caused significant confusion and concern on my part. 
Specifically, I was led to believe that your company had extended credit to me as part of a new credit agreement. However, it has come to my attention that your company did not actually extend new credit but instead accessed my credit information using my Social Security Number ( SSN ) and utilized an open-end credit plan that I had not explicitly authorized for such purposes. As noted in 15 U.S.C 1602- Definitions and rules of construction ( f ) The term credit means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment. 
( g ) The term creditor refers only to a person who both ( 1 ) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and ( 2 ) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement. Notwithstanding the preceding sentence, in the case of an open-end credit plan involving a credit card, the card issuer and any person who honors the credit card and offers a discount which is a finance charge are creditors. 
( j ) The terms open end credit plan and open end consumer credit plan mean a plan under which the creditor reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and which provides for a finance charge which may be computed from time to time on the outstanding unpaid balance. A credit plan or open end consumer credit plan which is an open end credit plan or open end consumer credit plan within the meaning of the preceding sentence is an open end credit plan or open end consumer credit plan even if credit information is verified from time to time. 
( l ) The term credit card means any card, plate, coupon book or other credit device existing for the purpose of obtaining money, property, labor, or services on credit. 
This misleading representation of credit extension, combined with the unauthorized use of my existing credit resources, constitutes a serious breach of trust and may also violate applicable consumer protection laws. I relied on the information provided by your company to make informed financial decisions, and the deceptive practices employed have directly impacted my financial situation. 

Under 15 U.S.C 1602 ( k ), the term " adequate notice '' means a printed notice to a cardholder which sets forth the perttinent facts clearly and conspicoulsy so that a person against who it is to operate could reasonably be expected to have noticed it and understood its meaning. This notice should be printed on any credit card, on each periodic statement of account issued to the cardholder, or provided by any other means reasonably assuring receipt by the cardholder. At no point during the process of my extenstion on credit did your institution clearly or conspicuously disclose the agreement to me. As a result I was deceived througout the process In light of the above, I am requesting the following actions to be taken immediately : Full Disclosure : I request a detailed explanation of how my credit information was obtained and used, including any documentation or agreements that authorize such actions. 

Account Review : I request a thorough review of my account to identify any and all transactions or activities that were conducted without my explicit authorization. 

Correction and Rectification : I request that any negative impact on my credit report or financial standing resulting from these practices be corrected immediately. This includes the removal of any unauthorized transactions or entries related to this matter. 

Cease and Desist : I demand that your company immediately cease any further unauthorized use of my credit information and refrain from engaging in any misleading practices in the future. 

Confirmation of Compliance : I request written confirmation that these actions have been taken and that my concerns have been fully addressed. 

I trust that you will treat this matter with the urgency and seriousness it deserves. Please respond to this notice within [ 15/30 ] days of receipt, confirming the steps that have been taken to address my concerns. Failure to respond adequately may result in further action, including but not limited to filing complaints with the appropriate regulatory authorities and seeking legal remedies. 

Thank you for your prompt attention to this matter. 

Sincerely,

Company response to consumer: Closed with explanation