Consumer complaint received 2025-12-09 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem when making payments — 
Company: Upstart Holdings, Inc.
State: GA

Complaint narrative:
I am filing a complaint regarding Upstarts incorrect claim that my account is past due, their misapplication of my automatic biweekly payments, the assessment of an improper late fee, and the failure to send legally required notices of any failed or rejected payments. Upstarts errors have caused stress and confusion and may lead to inaccurate credit reporting. 
I have had an Upstart personal loan since XXXX and have always been enrolled in automatic biweekly payments of {$76.00}, which together make up my monthly installment of {$150.00}. I am also enrolled in paperless billing, and I regularly receive emails notifying me of upcoming payments and confirming successful withdrawals. 

Upstart has never sent me a communication indicating that a payment was late, failed, or returned during this time. On XX/XX/XXXX, Upstart emailed me stating that I had a past due balance of {$15.00} and that my XX/XX/XXXX installment was 28 days late and would be reported to the credit bureaus. 

This was the first notice I received that Upstart believed I was delinquent. Upstart provided me a PDF payment ledger ( attached to this complaint ), which clearly shows : XX/XX/XXXX {$76.00} completed XX/XX/XXXX {$76.00} completed These two payments equal my full monthly installment. 
This proves the XXXX payment was made in full and was not late. 

This is a servicer error and not borrower delinquency. Because Upstart wrongly treated the XXXX installment as unpaid, they diverted {$15.00} of my XX/XX/XXXX autopay withdrawal toward a late fee. That late fee is invalid because the XXXX payment was correctly made. I received no notice at all of any alleged failure in XXXX or any other month. Upstarts own payment ledger contains no record of failed payments in XXXX. When I disputed the issue, Upstart replied with generic instructions telling me how to set up twice-monthly paymentseven though I have been on biweekly automatic payments since XXXX. They did not address : the incorrect delinquency, the misapplied payments, the assessed late fee, the lack of failure notifications, or the contradictory information in their own payment history. 

Upstarts incorrect accounting could lead to inaccurate credit reporting, which violates the Fair Credit Reporting Act ( FCRA ) requirement for accurate furnishing. Failure to notify me of any failed payment violates Regulation E, and Misapplication of payments and charging late fees based on servicer errors violates the terms of my promissory note. The companys own documents prove the XXXX payment was completed, undermining their claim that I was 28 days late. 

I am requesting that Upstart be required to : Correct my account ledger to show the XX/XX/XXXX installment was paid in full and on time. 

Remove the improper {$15.00} late fee assessed in XXXX. 

Confirm in writing that no delinquency will be reported to any credit bureau. 

Investigate why my properly processed payments were misapplied and why their system falsely showed me as 28 days late. 

Confirm that my biweekly automatic payments remain active and functioning, since their recent responses suggested otherwise. 

Provide written assurance that my future payments will be applied correctly.

Company response to consumer: Closed with explanation