Consumer complaint received 2025-02-15 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Charged fees or interest you didn't expect — 
Company: Upstart Holdings, Inc.
State: MO

Complaint narrative:
I am filing another formal complaint regarding my loan originally issued through Upstart/XXXX XXXX XXXX which has now been transferred to XXXX XXXX XXXX without my knowledge or consent. My previous complaint was closed unfairly, dismissing key issues without resolution. I am now demanding a full cancellation of this loan due to the numerous violations, deceptive practices, and the predatory nature of the lending process. 

Key Issues : XXXX. Predatory Lending & Misrepresentation of Loan Purpose When I applied for this loan, I spoke with Upstart representatives over the phone regarding my intended use for the funds, which was for school-related expenses. However, their own documentation explicitly states that funds can not be used for education-related expenses. 
Despite this restriction, Upstart knowingly approved the loan and allowed me to proceed, contradicting their own terms and demonstrating clear negligence or intentional deception. 
I was not given the option to select education-related expenses online, meaning I had to list a different reason despite my verbal disclosure. This was an intentional loophole that Upstart used to issue a loan they knew I would not have been approved for otherwise. 
XXXX. Unfair Loan Transfer Without Notification My loan was originally with XXXX XXXX via Upstart, but has now been transferred to XXXX XXXX XXXX without any formal notification, explanation, or consent. 
I was not provided with any documentation regarding this transfer or the terms under which this occurred. 
This creates unnecessary obstacles for disputing the loan, as Upstart can now deflect responsibility by claiming they no longer own it. 
This is a well-known tactic used in predatory lending to shift liability and prevent borrowers from seeking legal recourse. 
XXXX. Excessive and Abusive Interest Rate The annual percentage rate ( APR ) on this loan is XXXX XXXX, which is unethically high and predatory, especially given the circumstances under which the loan was approved. 
The finance charge alone adds {$10000.00} in additional costs, more than doubling the total repayment amount to {$19000.00} on a loan of only {$9900.00}. 
This level of interest is comparable to payday loans and is clearly designed to trap borrowers in long-term debt. 
XXXX. Unfair Complaint Dismissal My previous complaint was dismissed under the claim that I clearly signed and agreed to the loan terms. 
This does not erase the fact that Upstart engaged in deceptive and misleading practices. 
Signing a contract does not make predatory lending acceptable, nor does it mean a borrower was given fair or transparent terms. 

Requested Resolution : Immediate cancellation and discharge of this loan in full due to the above violations. 
Full investigation into Upstart, XXXX XXXX, and XXXX XXXX XXXX regarding their loan transfer practices, failure to disclose information, and violations of lending laws. 
Confirmation in writing that I will no longer be held liable for this loan or any associated debts. 

I expect this to be taken seriously, and I will escalate this matter further if necessary. This complaint will be forwarded to the CFPB, the FTC, the Missouri Attorney General, and any other relevant consumer protection agencies.

Company response to consumer: Closed with explanation