Consumer complaint received 2025-08-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: Upstart Holdings, Inc.
State: CA

Complaint narrative:
Subject : Complaint Against Upstart Loan Finance for Mishandling Vehicle Loan and Damaging Credit Report. Along with obtaining documents specifically of title transfer.

Dear Consumer Financial Protection Bureau, I am filing this complaint against Upstart Loan Finance ( Upstart ) regarding the mishandling of my vehicle loan for a XXXX XXXXXXXX, the improper transfer of the vehicles title, and the resulting severe damage to my credit report due to inaccurate reporting. As a California resident, I believe Upstart has violated my rights under state law and federal consumer protection regulations, and I seek your assistance in resolving this matter. 

Details of the Issue I financed my XXXX XXXX through Upstart Loan Finance. After the vehicle was deemed a total loss, I contacted Upstart to inquire about retaining the salvage vehicle, as is my right under California law. However, Upstart ignored my inquiries and, without my consent or notification, transferred the vehicles title to Copart, a third-party salvage company, which now holds both the vehicle and its title. Upstart informed me that they do not allow owner-retained salvage and that the title was released as part of a settlement agreement with my insurance provider, XXXX XXXX XXXX I was neither informed of nor included in this settlement process, which denied me the opportunity to exercise my rights to the salvage vehicle or its value. 

Under California Vehicle Code Section 11515, a salvage certificate must be issued in the name of the owner shown on DMV records at the time of the loss, unless otherwise agreed. As the vehicle owner, I was not informed of any agreement to transfer the title to XXXX. Additionally, California Code of Regulations, Title 10, Section 2695.8 requires that I be notified in writing of my right to retain the salvage vehicle and the associated obligations, such as notifying the DMV and covering transfer fees. Upstart failed to provide this notification, violating my rights as the borrower and vehicle owner.

Furthermore, I am entitled to transparency regarding the title transfer, including access to documents such as the Application for Salvage Certificate ( REG 488C ) and the Certificate of Title or Application for Duplicate or Paperless Title ( REG 227 ). Upstart has refused to provide these documents, claiming they are unable to do so, which contradicts California law.

Impact on My Credit Report As a result of Upstarts mishandling, my loan account is listed as 649 days past due with an outstanding balance of {$2600.00}, which is being inaccurately reported to credit bureaus. This delinquency is not a fair reflection of what is owed, as I no longer possess the vehicle due to Upstarts unauthorized transfer of the title. The misreporting has caused severe damage to my credit score, limiting my ability to secure loans, obtain housing, or pursue other financial opportunities. This financial harm has caused significant distress and unfairly jeopardized my economic stability.

Requested Actions from Upstart I have requested the following from Upstart, but they have not adequately responded : 1. Copies of all documents related to the title transfer, including the Letter of Guarantee, the Application for Salvage Certificate ( REG 488C ), and correspondence with XXXX. 
2. Confirmation of the vehicles current status with XXXX and whether I can pursue any claim to the salvage value. 
3. An explanation of the settlement agreement and why I was not informed of my salvage rights.

4. Resolution of the {$2600.00} balance, either through a refund equivalent to the salvage value or cancellation of the debt, given the mishandling and credit damage.

Steps I Plan to Take To address the harm caused by Upstart, I intend to : Dispute the inaccurate delinquency with XXXX XXXX XXXX XXXX to correct my credit report. 
Consult a legal professional to explore potential damages for the financial and personal hardship caused by Upstarts actions. 
Continue to escalate this matter, including through this CFPB complaint, to ensure accountability.

Request for CFPB Assistance I respectfully request that the CFPB investigate Upstart Loan Finance for : Violating California laws ( Vehicle Code Section 11515 and California Code of Regulations, Title 10, Section 2695.8 ) by failing to notify me of my salvage rights and transferring the title without consent.

Failing to provide required documentation related to the title transfer.

Inaccurately reporting my loan as delinquent, causing severe damage to my credit report in violation of fair credit reporting standards under the Fair Credit Reporting Act ( 15 U.S.C. 1681 ).

Please compel Upstart to : 1. Provide all requested documentation related to the title transfer.

2. Correct the inaccurate reporting to credit bureaus and remove the delinquent status from my account.

3. Resolve the {$2600.00} balance, either through a refund or cancellation, to address the financial harm caused.

4. Compensate me for the damage to my credit and the loss of my salvage rights.

Supporting Information Loan Provider : Upstart Loan Finance Contact : auto.servicing@upstart.com, ( XXXX ) XXXX Vehicle : XXXX XXXX Outstanding Balance : {$2600.00} ( reported as 649 days past due ) Third Party Involved : Copart ( current holder of vehicle and title ) Insurance Provider : XXXX XXXX ( involved in settlement ) I have attached copies of my correspondence with Upstart, including their response denying my request for documents and salvage rights. I am happy to provide additional documentation or details as needed. 
Thank you for your attention to this matter. I trust the CFPB will investigate Upstarts practices and help resolve this issue to prevent further harm to my financial standing. 

Sincerely, Unsatisfied Customer

Company response to consumer: Closed with explanation