Consumer complaint received 2024-09-07 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Upstart Holdings, Inc.
State: MI

Complaint narrative:
I am writing to formally dispute the reporting of an account on my consumer report. This account has been inaccurately and misleadingly reported by the original creditor despite the transfer to a subsequent purchaser of the debt, in clear violation of the Fair Credit Reporting Act ( FCRA ) and other applicable regulations. I am demanding the immediate deletion of this account from my credit report. 

The creditor has continued to report the account as " charged off '' every month, despite showing the balance as fully paid off and transferred to another lender. 
This is misleading and inaccurate. A charge-off is typically reported once, reflecting that the creditor has deemed the debt uncollectible and written it off. Continuous reporting of the charge-off each month, especially after the debt has been transferred or sold, is considered misleading and inaccurate under the FCRA. This is a clear violation of 15 U.S. Code 1681s-2 ( a ), which mandates that furnishers report only accurate and complete information. The ongoing monthly reporting of a charge-off is both false and deceptive when the account is no longer under the original creditor 's ownership.

The new lender has also been reporting the same debt as " charged off and in collections. '' This results in double reporting of the same debt, creating the false appearance that two separate charge-offs exist. This duplicative reporting is extremely damaging to my credit score and financial standing and violates the FCRAs requirement for accuracy under 15 U.S. Code 1681e ( b ). Both entities reporting the same debt as a charge-off is misleading and unfair, as it artificially inflates the severity of the accounts impact on my credit report. 

The inaccurate reporting of this account has had a profound and negative impact on my overall financial standing. Due to this duplicative and misleading reporting, I have been denied multiple credit opportunities, including credit cards, loans, and other financial products. These denials have harmed my ability to manage my financial affairs, contributing to unnecessary financial stress and losses. 

The creditors continuous inaccurate reporting is an intentional, negligent, defamatory, and unlawful FCRA violation. 
Therefore I demand that the following actions be taken immediately : 1. Complete and permanent deletion of the account from my consumer report 2. A written confirmation from your agency that this account has been fully deleted from my consumer report. 3. Compensation for damages due to the negative impact this reporting has had on my financial standing, including but not limited to a check payable to XXXX XXXX in the minimum amount of {$1000.00} for each violation, as authorized under 15 U.S.

Code 1692k for FDCPA violations and 15 U.S. Code 1681n for the following violations listed below including but not limited to : 15 U.S. Code 1681s-2 ( a ) Duty to Provide Accurate Information : The original creditor is in violation of this provision by reporting the account as " charged off '' after it was fully paid off and transferred. The debt has been discharged from their ownership, and they no longer have the legal right to report it as an active liability.

15 U.S. Code 1681e ( b ) Accuracy of Consumer Report Information : Credit reporting agencies have a legal duty to ensure maximum possible accuracy of the information reported. Allowing both the original creditor and the purchaser of the debt to report charge-offs for the same account leads to inaccurate and duplicative reporting. This has led to significant negative consequences for my creditworthiness, resulting in unfair denials of credit opportunities.

Unfair and Deceptive Practices : Reporting this debt in a manner that falsely suggests multiple charge-offs is both unfair and deceptive. This is a violation of consumer protection laws prohibiting unfair and deceptive acts and practices ( UDAP ). 

I demand swift resolution of this matter within 30 days from this report.

Company response to consumer: Closed with explanation