Consumer complaint received 2026-02-22 00:00:00
Product: Debt collection — I do not know
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: Upstart Holdings, Inc.
State: NC

Complaint narrative:
To Whom It May Concern, I am submitting this formal complaint against Upstart Network ( UPSTART NETW ) for improper credit reporting following a charge-off and sale/transfer of an unsecured loan, and for failure to issue the legally required IRS Form 1099-C after declaring the debt a loss. 

This conduct violates 26 U.S.C. 6050P, Treasury Regulation 1.6050P-1, the Fair Credit Reporting Act ( FCRA ), and XXXX XXXX  reporting standards. 

Account Information Creditor : Upstart Network Account Number : XXXXXXXX XXXX XXXX  Account Type : Unsecured Loan ( 65-month term ) Date Opened : XX/XX/XXXX Closed Date : XX/XX/XXXX High Balance Reported : {$15000.00} ( XXXX XXXX XXXX ) High Balance Reported : {$12000.00} ( XXXX XXXX Current Balance Reported : {$0.00} Account Status : Collection / Charge-Off Creditor Remarks : Charged off as bad debt Purchased by another lender Account transferred or sold Unpaid balance reported as a loss by the credit grantor Cancellation-of-Debt Event & 1099-C Requirement Upstart Network has explicitly reported that this account was : Charged off as bad debt Reported as a loss Transferred or sold to another lender Reduced to a {$0.00} balance Under 26 U.S.C. 6050P ( a ) and Treasury Regulation 1.6050P-1 ( b ) ( 2 ), these actions constitute an identifiable cancellation-of-debt event for indebtedness exceeding {$600.00}, which legally requires issuance of IRS Form 1099-C.

To date : No IRS Form 1099-C has been issued or provided No written explanation has been provided disputing the occurrence of a cancellation-of-debt event Upstart Network can not lawfully claim the
debt was both sold and canceled as a loss while continuing to report it as a derogatory tradeline without issuing the required tax form.

FCRA & XXXX XXXX Reporting Violations This tradeline is inaccurate and materially misleading for the following reasons : Conflicting high balances across consumer reporting agencies ( {$15000.00} vs. {$12000.00} ) Reporting a {$0.00} balance while continuing to report severe derogatory status Reporting both sale/transfer and loss/cancellation simultaneously Failure to clarify the legal enforceability of the obligation These actions violate : 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) Furnishing inaccurate or misleading information 15 U.S.C. 1681s-2 ( b ) Failure to conduct a reasonable investigation after dispute 15 U.S.C. 1681e ( b ) Failure to maintain reasonable procedures to ensure maximum possible accuracy Under XXXX XXXX  guidelines, a furnisher may not continue reporting a tradeline in a manner that misrepresents ownership, balance status, or legal responsibility after sale or cancellation. 

Demand for Relief I hereby demand that Upstart Network : Provide a copy of the IRS Form 1099-C issued for this account ; Provide written documentation establishing that no cancellation-of-debt event occurred and clarifying current ownership and reporting authority ; Immediately delete this tradeline from all consumer reporting agencies, including XXXX XXXX XXXX XXXX XXXX 

Absent legally sufficient documentation, continued reporting constitutes willful noncompliance with federal law. 

This complaint is being submitted to the Consumer Financial Protection Bureau ( CFPB ) for regulatory re

view and enforcement. Please provide a written response within the CFPB-mandated resp
onse timeframe.

Company response to consumer: Closed with explanation