Consumer complaint received 2025-05-01 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem with the payoff process at the end of the loan — 
Company: Upstart Holdings, Inc.
State: NY

Complaint narrative:
I am filing this complaint regarding Upstart Network , Inc.s handling of a loan payoff I attempted in XX/XX/XXXX. I believe their actions have led to improper late fees and interest charges being assessed against me despite my good faith efforts to resolve the loan. 

In XX/XX/XXXX, I took out an Upstart loan to consolidate some debt. By XXXX, I was in a better credit position, and refinanced with my bank XXXX XXXX XXXX. XXXX XXXX XXXX sent a check to them for payoff in the amount of {$21000.00}, dated XX/XX/XXXX. XXXX. 

On XX/XX/XXXX, I received an email from Upstart confirming they had received a payment of $ XXXX by my bank XXXX XXXX XXXX XXXX XXXX  XXXX to satisfy the full balance of my loan ( XXXX ). This amount matched my loan payoff and was sent via official check. 

I received no indication from Upstart that there was any issue with the check for over a month. Then, on XX/XX/XXXX, I received a email stating my loan was past due ( I did not see this email ), a late fee of {$31.00} had been assessed, and I owed a total of {$660.00}. This was the first notification I received that there was a problem. 

After I received a notification that my autopay was resuming I called Upstart on XX/XX/XXXX, and was told that their back office did not process the check due to poor image quality. However, no one could explain what specifically was wrong with the image. I asked whether the check had been returned, and I was told they could not locate it. 

On XX/XX/XXXX, I received a photo of the check from my bank. The image was clear and legible. I do not believe Upstart made a reasonable or good-faith effort to notify me or process the payment they acknowledged receiving. 

On XX/XX/XXXX, I paid the original {$21000.00} again, using the released funds from my bank. I also called Upstart and asked them to waive any accrued interest or fees beyond the original amount, given that I acted promptly, in good faith, and was never properly notified of an issue with the original check. I also filed a complaint with the XXXX XXXX XXXX on this day. 

To date, Upstart has not explained what was wrong with the check image nor have they agreed to remove the additional interest and fees. They have also reported my XX/XX/XXXX payment as late on my credit. Further, I cancelled my autopay for any outstanding balance, and it appear it has begun again without the option to turn it off ( I will call and have them do this ). 

I believe it is unlawful and unfair for Upstart to assess any interest or fees beyond XX/XX/XXXX, the date they acknowledged receiving my check. I am requesting : XXXX. A full waiver of all late fees and accrued interest after XX/XX/XXXX. 
2. Written confirmation that my loan is marked as satisfied in full as of that date.

3. Assurance that no negative credit reporting will be made due to this incident.

Thank you for your assistance in resolving this matter.

Company response to consumer: Closed with explanation