Consumer complaint received 2024-07-02 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Lender trying to repossess or disable the vehicle
Company: Upstart Holdings, Inc.
State: FL

Complaint narrative:
Hello, I am filing a formal complaint against Upstart Loans for unfair and illegal acts regarding my vehicle loan payment. I made payments on time for my vehicle loan since inception and then had to file bankruptcy in XXXX due to medical debt. During the bankruptcy Upstart communicated with my attorney and agreed in writing to reaffirm my vehicle loan and allowed me to keep making payments to keep the vehicle. Upstart 's legal department sent my attorney a reaffirmation agreement and he sent it back. It was Upstart 's responsibility to send the reaffirmation back to the court but they failed to do so and failed to appear in court. They then continued taking my payments on the vehicle for the next 15 months with no issue and reported the loan on time on my credit report. Then out of the blue I received notice that they had charged the loan off on my credit report and that they shut off my online access to make payments. When calling them multiple times in regards to their error, they apologized time and time again and said it was a company wide issue where they had made an error on a large portfolio of bankruptcy accounts and " forgot '' to file the reaffirmation agreements. They assured me I could keep making payments soon and they should have the issue fixed within 30 days. This was in XX/XX/XXXX at this time. I kept contacting them to make payments and they then started refusing my payments and changed their response completely telling me because I filed bankruptcy that they discharged the car loan and they fraudulently claimed that they never sent my attorney a reaffirmation agreement. 
My attorney then contacted them via email and phone and certified mail with proof of their reaffirmation agreement demanding they fix their error and pay attorney costs and they refused to respond to him at all. When I again reached out they told me they would not speak to me anymore. Then I received a notice demanding full payment of {$9200.00} on the entire loan or they will repossess the vehicle. I disputed their claim and repossession attempts but they refuse to honor their reaffirmation agreement. I have received unlimited stress and suffering from their gross negligence and just want them to fix the issue. They violated their own agreement and also violated bankruptcy law by accepting my payments during the stay and for over a year afterward, then trying to report my loan charged off and try to repossess a vehicle I always paid on time until they began refusing payments. 

In reviewing the online forums after their reps told me this was a companywide error on their part effecting many consumers, I found many people sharing similar stories about Upstart and their fraudulent practices. I want my loan put back in good standing, allowed to make my monthly payments as I was doing, and all repossession efforts to immediately stop. I am also looking into a class action lawsuit against Upstart for their deceptive loan handling, but am trying to give them the opportunity to resolve their error. I am disputing the balance they claim is owed and disputing the repossession attempt. 

Sincerely, XXXX

Company response to consumer: Closed with explanation