Consumer complaint received 2025-07-29 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem when making payments — 
Company: Scratch Financial, Inc.

Complaint narrative:
In early 2025, I experienced a technical issue with Scratchpay ( Scratch Financial , Inc. ) that caused my pre-authorized debit ( PAD ) payment method to become unlinked from my account without any notice. As a result, multiple scheduled payments failed, and I was unaware of the problem until I contacted them directly. I later learned this issue was due to Scratchpays outdated integration with their previous XXXX payment processor. 

Whats most concerning is the lack of transparency and communication from Scratchpay. I was never informed proactively about the issue, nor was there any general notification to XXXX customers. I had to reach out several times by email and phone just to understand what was going on. 

On XX/XX/year>, I submitted a formal written complaint outlining the technical failures, communication issues, and requested a written response. Despite their promise to escalate my concerns and notify their back-end team, I have not received any reply from management to date. Ive followed up multiple times and have only been told, again and again, that they are " waiting to hear back. '' I am requesting a formal response from Scratchpay acknowledging the issue, detailing the steps theyve taken to resolve it for other customers, and providing some accountability for their communication failures. As a financial services provider managing sensitive customer data and payment schedules, I believe they have fallen far short of acceptable standards. 

Here is the formal Complaint i'm yet to have feedback on : Formal Complaint XX/XX/year> XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX XXXX Scratch Financial , Inc . 
Attn : Customer Support / Complaints Team XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, CA XXXX XXXX Scratchpay Team, I am writing to formally lodge a complaint regarding the ongoing and unresolved issues I have experienced as a XXXX customer of Scratchpay, as well as the unsatisfactory manner in which these issues have been handled over the past several months. 
As outlined in my previous communications, I was impacted by a system error that caused my pre-authorized debit ( PAD ) payment method to become unlinked without any notification. This failure, stemming from an outdated integration between your borrower portal and your previous XXXX payment processor, resulted in multiple failed recurring payments. This situation created unnecessary confusion, concern about missed obligations, and frustration, particularly given the absence of any outreach from your team to advise me or other affected customers.

While I recognize that technical challenges may arise in any system, the most troubling aspect of this experience has been Scratchpays complete lack of transparency, communication, and proactive customer care. I was only made aware of the nature of the issue and the eventual transition to Stripe after several of my own inquiries. Despite being assured that I would be kept informed of any developments, I received no meaningful updates unless I initiated contact first. At no point was there a general notification to XXXX users explaining the issue, outlining the interim solutions, or offering reassurance that a resolution was in progress. This left me, and likely many others, entirely in the dark. 
After XXXX months of silence and uncertainty, I was finally advised to manually reenter my payment information due to the system migration to XXXX. To receive such a critical update only after prolonged delays and repeated follow-ups is entirely unacceptable especially from a financial services company that manages sensitive banking information and is responsible for ensuring client accounts are accurately maintained. 
My primary concerns include : Failure to notify clients of known technical issues : Despite the issue being internally known, your team did not notify impacted XXXX clients or offer any explanation until well after the fact. There was no general communication or courtesy notice to warn users of payment disruptions or potential account problems. 
Lack of transparency and accountability : I was repeatedly assured that I would be kept in the loop regarding any developments. However, there was no consistent or proactive communication from your team. Every update I received was the result of my own follow-ups an entirely backwards model of client care. 
Inadequate customer service and communication standards : As a borrower, I expect timely, accurate, and empathetic responses when service failures affect my ability to meet financial obligations. Your team had my contact information, yet no one reached out personally or directly to address the issue or to assist in restoring the link between my account and payment method. 
Failure to uphold your companys stated values : Scratchpay publicly promotes values such as customer-first service, transparency, and trust. Unfortunately, my experience has not reflected these values at any stage. In fact, it has highlighted a significant gap between your companys marketing and the reality experienced by your XXXX users. 
In light of the above, I am formally requesting : XXXX. A written acknowledgment of this complaint and the service failures I have experienced as a XXXX client. 
XXXX. A clear explanation of the steps Scratchpay is taking to ensure similar issues do not impact XXXX customers in the future. 
XXXX. Confirmation that this complaint has been escalated to senior leadership, including XXXX and XXXX, so that they are made aware of the deficiencies in customer experience and service.

4. Consideration of a goodwill compensation to reflect the time, stress, and inconvenience I have endured as a result of the companys internal technical failures and its lack of accountability and communication. 
I expect a written response to this complaint within XXXX ( XXXX ) business days, in accordance with standard complaint handling timelines. Please note that I am prepared to escalate this matter further if necessary, including to regulatory or consumer protection authorities, should an appropriate and timely resolution not be provided. 
Thank you for your attention to this matter. I look forward to your response. 
Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation