Consumer complaint received 2025-03-25 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Struggling to pay your loan — 
Company: Upstart Holdings, Inc.
State: CA

Complaint narrative:
Subject : Formal Dispute Account # XXXX Dear Upstart Servicing, I am writing to formally dispute the negative reporting on my account ( # XXXX ) and request a resolution regarding the handling of my hardship request. While I understand your obligations to report accurate information, I believe the current reporting fails to reflect the full context of my case. Ive made several efforts to address my financial hardship, and I am asking for your help in rectifying this matter. 

Key Points Regarding My Account : Notification of Hardship : I reached out to Upstart proactively to notify you of my financial hardship, in hopes of finding a resolution before the situation escalated. I applied for a loss mitigation option, as I had hoped to avoid falling behind on my payments and mitigate any negative consequences. However, I was denied due to the requirement of XXXX successful payments since the completion of my previous hardship plan, which I was unaware of and unable to fulfill. 

No Clear Communication on Requirements : I believe the requirements for eligibility were not clearly communicated during the application process. Given the financial difficulties I was facing, I acted in good faith and attempted to find a reasonable solution. The lack of clear information regarding the need for XXXX successful payments before reapplying for loss mitigation placed me in a difficult position. 

Failure to Offer Assistance or Relief : Despite my proactive communication and the request for a hardship plan, I received little to no tangible assistance to avoid negative reporting or a charge-off. I was hoping for more flexibility given my situation and previous communication with Upstart. 

Negative Credit Reporting : As a result of the lack of assistance, my account was charged off, negatively impacting my credit. Given my proactive attempts to communicate and resolve the issue, I believe this reporting is unfair and does not fully reflect my actions or intentions. 

Relevant Legal Context : Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681 : Upstart has an obligation to report accurate information to credit bureaus. Given my proactive efforts and attempts to resolve this issue, I believe the current reporting does not fully reflect the accurate status of my account.

Fair Credit Billing Act ( FCBA ) 15 U.S.C. 1666 : As outlined in the FCBA, I have the right to dispute billing errors, including situations where Ive made a reasonable effort to address payment challenges.

Equal Credit Opportunity Act ( ECOA ) 15 U.S.C. 1691 : The ECOA prohibits discriminatory or unfair treatment in the handling of credit applications and requests for assistance. I feel that my request for relief was not given the attention or consideration it deserved.

Gramm-Leach-Bliley Act ( GLBA ) 15 U.S.C. 6801 and 6802 : As a financial service provider, Upstart is required to treat consumer financial information with the utmost care. I believe the handling of my hardship request did not align with this duty.

Consumer Financial Protection Act ( CFPA ) 12 U.S.C. 5531 : The CFPA protects consumers from unfair practices. Given the lack of clear communication and assistance in my case, I believe I was not given a fair opportunity to resolve this issue before it escalated.

Request for Resolution : I am requesting the following actions : Immediate Review and Correction of Credit Reporting : I ask that you reconsider the negative reporting on my account and remove any inaccurate or unfair marks from my credit report.

A Comprehensive Review of My Case : Please review the circumstances surrounding my hardship request and the denial of assistance. I would appreciate understanding why the XXXX successful payments requirement was not clearly communicated during my Hardship application process. 

Consideration of Alternative Relief Options : I would like to explore any other potential relief options available to resolve this matter in a fair and reasonable manner, taking into account my current financial situation. 

I am hopeful that we can resolve this issue promptly and amicably. Please let me know the next steps you will take to address my concerns. I am confident that with your cooperation, we can reach a fair resolution that accurately reflects my efforts to maintain this account responsibly. 

Thank you for your time and attention to this matter. I look forward to your response. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation