Consumer complaint received 2025-07-21 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: UPGRADE, INC.
State: CA

Complaint narrative:
THIS IS NOT A DISPUTE, THIS IS A PRE SETTLEMENT OFFER TO UPGRADXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX To Whom It May Concern, This letter serves as a good faith pre-arbitration settlement offer concerning the following XXXX Upgrade accounts associated with XXXX XXXX : Account ending in XXXX ( allegedly sold to XXXX XXXX XXXX ) Account ending in XXXX ( still being reported by XXXX XXXX ) I previously issued a XXXX formal notice via email. Please note : this is not a dispute, but a final opportunity to resolve this matter amicably prior to arbitration. 

Despite repeated attempts to address the issue, both accounts are currently being reported inaccurately on XXXX XXXX consumer credit reports. Among the violations : A sham reinvestigation was conducted, where Upgrade or its agents failed to perform a meaningful review under 15 U.S.C. 1681i.

Inaccurate, unverifiable, or outdated information was verified as accurate, despite being formally disputed.

A full accounting and chain of title documentation was requested and never presented, in violation of 15 U.S.C. 1681s-2 ( b ), as well as your duties to investigate and correct under the FCRA. 

Further, based on publicly available SEC filings, including the Upgrade Receivables XXXX XXXX XXXX, our research confirms that Upgrade has securitized these receivables, transferring legal title and economic risk to third-party investors. Once securitized, Upgrade : Is no longer the true party in interest ; Retains, at best, servicing rights without ownership ; Can not legally or factually report tradeline information on these accounts as a creditor. 

Continued reporting by Upgrade in its own nameparticularly on account XXXX, which was allegedly XXXX misleading and XXXXay constitute a material misrepresentation under federal consumer protection laws, including : FCRA 1681b, 1681s-2, 1681e ( b ) TILA 1666 ( for billing error and accounting ) And possibly SEC Rule XXXX ( for misrepresenting beneficial interest in accounts on credit reports ) To resolve this matter privately and without further escalation, I am offering a one-time settlement of {$6000.00} USD ( XXXX XXXX Dollars ). This offer is made in good faith to avoid the time and expense of formal arbitration proceedings. 

Please be advised that if this matter is not resolved within XXXX calendar days, I will proceed with filing an arbitration claim through XXXX, per your cardmember agreement, and will also consider regulatory complaints through the Consumer Financial Protection Bureau ( CFPB ) and Securities and Exchange Commission ( SEC ). As you are aware, arbitration will likely cost your organization substantially more in filing, administrative, and legal fees than this pre-settlement offer. 

This is a final opportunity to settle amicably and confidentially. I reserve all rights under contract, law, and equity. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation