Consumer complaint received 2025-06-17 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: Upstart Holdings, Inc.
State: MI

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, MI XXXX ( XXXX ) XXXX XXXX XX/XX/XXXX XXXX, PC XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, MI XXXX RE : Disputed Debt Allegedly Owed to XXXX XXXX, XXXX Account # XXXX To Whom It May Concern, This letter serves as a formal dispute and request for validation regarding the above-referenced account. I am in receipt of your firms claim on behalf of XXXX XXXX, XXXX related to an account originally held by Upstart XXXX XXXX. I do not acknowledge any debt to XXXX XXXX or your office, and I assert my rights under federal law to dispute and request verification. I was not properly served in the legal matter you initiated on XX/XX/XXXX, and I challenge both the validity of the debt and the process by which legal action was pursued. 

Accordingly, I demand the immediate cessation of any and all collection efforts, including the lawsuit filed on XX/XX/XXXX, until proper and lawful validation is provided. This includes, but is not limited to, a copy of the original signed agreement or promissory note bearing my signature, not a generic agreement template, spreadsheet, or balance summary. Under the Fair Debt Collection Practices Act ( FDCPA ) and relevant case XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) a debt collector can not lawfully pursue collection or litigation without possessing or producing competent evidence that the debt is valid and that the consumer owes it. The absence of such a signed agreement calls into question the entire basis for your claim, and any further attempt to litigate or collect without it will constitute a knowing and willful violation of federal law.

Under 15 U.S.C. 1692g ( b ) of the Fair Debt Collection Practices Act, I further demand the immediate cessation of any collection activity, including litigation, until you provide the following documentation : a copy of the original signed agreement between myself and Upstart Loan Operations ; a complete and itemized payment history including all interest, fees, and adjustments ; proof of the legal chain of assignment transferring ownership from Upstart to XXXX XXXX ; a copy of the complaint filed and documented evidence of proper service; and written confirmation of Velocitys legal authority to collect and your firms authority to litigate this debt. 

At this time, I also bring to your attention multiple violations of the Fair Credit Reporting Act and Metro 2 reporting standards by the original creditor, Upstart Loan Operations. My XXXX credit report dated XX/XX/XXXX, shows this account as Closed. {$8400.00} written off, with a balance of {$0.00}. The payment history indicates a charge-off in XXXX and XXXX of XXXX, and XXXX  clearly lists Company Sold : Velocity Investments XXXX XXXX Despite acknowledging the sale, Upstart continues to report the account as charged off, which is inaccurate and materially misleading under 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ), 1681s-2 ( a ) ( 2 ), 1681i ( a ) ( 1 ) ( A ), and 1681s-2 ( b ). Furthermore, Metro 2 guidelines require that when a debt is sold, it be reported with a {$0.00} balance, the status code updated to reflect the transfer, and the Special Comment Code AU included to signify it was sold to another lender. Upstarts failure to comply with these standards has created a misleading and damaging impression of my creditworthiness. 

Additionally, XXXX is reporting this same account with equally conflicting and erroneous information. As of XX/XX/XXXXXXXX XXXX  shows the account as a charge-off with a {$0.00} balance, a charge-off amount of {$8400.00}, and lists Narrative Codes 067 ( Charged Off ), 123 ( Account Transferred or Sold ), and 238 ( Unsecured ). This is a direct contradiction. If the account was soldas statedthe charge-off designation must be removed, and only the transfer status retained. Retaining both codes simultaneously creates the false impression that I continue to owe a debt to Upstart, which I do not. These are additional violations of the FCRA and the Metro 2 Format, and they show a failure to conduct a reasonable investigation or to make the required corrections following disputes I previously submitted. 

As established in XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ), furnishers and consumer reporting agencies are required to conduct meaningful reinvestigations. In XXXX v. XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ), the court held that failure to correct inaccurate data after notice of dispute establishes liability. Moreover, XXXX v. XXXXXXXX XXXX XXXXXXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX Md. XXXX ), and XXXX v. XXXX XXXX  XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX. XXXX ), confirm that debt collection litigation without proper validation or based on unverifiable data violates both the FDCPA and the FCRA. 

Accordingly, I demand that all collection and legal activity be suspended until the requested documentation is provided. I further request written confirmation that your lawsuit has been stayed pending resolution of this dispute. You are also advised to notify Upstart Loan Operations and all credit reporting agencies that the accuracy of the reported information is disputed and that the tradeline should be corrected or removed entirely. If I do not receive a satisfactory response within thirty ( 30 ) days from the date of this letter, I will proceed with complaints to the Consumer Financial Protection Bureau, the Michigan Attorney General, and the State Bar of Michigan, and I will explore civil action for violations of the FDCPA and FCRA, including recovery of statutory and actual damages, costs, and attorneys fees. 

All communication regarding this matter must be made in writing. I do not consent to phone calls. I reserve all rights under federal and state law. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation