Consumer complaint received 2025-03-25 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Getting the loan — 
Company: UPGRADE, INC.
State: CA

Complaint narrative:
To Whom It May Concern, I am filing a formal complaint against XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX, and XXXX XXXX, which are all affiliated entities. My concern arises from a recent experience applying for a personal loan through XXXX XXXX, where I submitted an online application intended to be reviewed by potential lenders for prequalification. 

On XX/XX/year>, I received a pre-approval from XXXX XXXX XXXX, pending verification and submission of my personal information. I promptly provided all the requested information, and shortly after, I received a phone call from an XXXX representative to verify my identity. During the call, I was informed of the loan terms and asked several verification questions. I was then told that my loan application was being finalized. 

However, I later received another call from an XXXX representative who informed me that there was a system glitch preventing further progress on my application. I was given XXXX options : either withdraw my application voluntarily or allow it to remain in the system, where it would automatically cancel after XXXX  days. The representative stated that the issue was being addressed by their IT department, and I could reapply once it was resolved. Based on this guidance, I opted to withdraw the application voluntarily. 

On XX/XX/year>, following their advice, I reapplied for the loan. Again, I was pre-approved, this time with a condition that a portion of the loan be used to pay off an existing account. I submitted all requested personal and financial documentation, including my bank information for income verification. I received a follow-up call to verify my identity and confirm the loan terms and was told that my application was moving to final review. 

On XX/XX/year>, I received another callthis time from a representative named XXXX that the same system glitch had occurred again, and I was once more presented with the same XXXX options : voluntary withdrawal or wait for auto-withdrawal after XXXX  days. 

At this point, I became deeply concerned about the transparency and integrity of Upgrades practices. I believe this experience may constitute a violation of UDAAP ( Unfair, Deceptive, or Abusive Acts or Practices ) due to misleading conduct. In both instances, I was told I was approved, met the conditions of the loan, completed all verification steps, and was led to believe my application was proceedingonly to later be encouraged to withdraw due to internal system issues. 

It is highly concerning that Upgrade is offering loan approvals to qualifying consumers without the ability to follow through. The repeated system glitch explanation appears questionable and potentially deceptive, especially since I was never informed of any technical issues until after multiple stages of the process were completed, including sharing sensitive personal and financial information. 

As a XXXX XXXX with over XXXX  years of experience in the lending industry, I find this practice unacceptable. A consumer should not be misled into thinking they are approved only to be later asked to self-withdraw without a clear, formal adverse action or reason for denial. If an internal mistake occurred or if the loan should not have been approved, XXXX should have communicated this transparently and provided an appropriate adverse action notice, rather than pressuring the applicant to withdraw. 

I am currently seeking legal assistance to further investigate this matter and determine whether these practices have affected other consumers similarly. I believe this issue merits regulatory attention and further review.

Company response to consumer: Closed with explanation