Consumer complaint received 2024-04-26 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: UPGRADE, INC.
State: TX

Complaint narrative:
I am a covered borrower under the XXXX XXXX XXXX, as defined in 32 C.F.R. 232.3 ( g ) ( 1 ). Entering XXXX XXXX on XX/XX/2007, and serving. 

On two Upgrade loans, payments were rolled over this extends the terms, and more interest is charged. At no time is the interest rate allowed to exceed the XXXX XXXX OF 36 %, pursuant to 10 USC 987. 

Upgrade Inc., violates the MLA in ( 6 ) separate ways : ( 1 ) charging interest above the 36 % statutory rate cap for the Military Annual Percentage Rate ( MAPR ) ; ( 2 ) failing to provide any required MLA Disclosures before I signed for the loan ; ( 3 ) failing to verbally explain the MLA, which is prohibited by the MLA ; ( 4 ) Failing to include fees and prepaid interest paid to them within the MAPR calculations ; ( 5 ) Having an unknown attorney obligate the terms and sign for me in these loans issued to upgrade by another lender. ( 6 ) rolling over loan payments that extend the terms and charge more interest. 

According to information and belief, all Upgrade Inc. loans exceed 36 percent MAPR. Upgrade failed to include a Loan Origination Fee/Prepaid Finance Charge ( Paid to Lender ) in two of its loans to me. Processing fees are included in the MAPR calculation. Due to this, my loans exceed the MLA 's statutory rate cap of 36 percent MAPR. In addition, Upgrade Inc. loan documents are signed without my knowledge or authority by an unknown attorney. 

I am a Covered Borrower, subject to the MLA protections and limitations. A covered borrower is a consumer who, at the time becomes obligated on a consumer credit transaction or establishes an account for consumer credit, is a covered member of the armed forces or a dependent of such a member ( as defined in 32 CFR 232.3 ( g ) ( 2 ) and ( g ) ( 3 ) ). 

Upon my reasonable request to Upgrade management team to come within the Law, Upgrade failed to act and refused to act on grounds generally applicable to a Covered Borrower. This was in violation of the MLA pursuant to 10 USC 987. Therefore, these loans are legally invalid and void from their inception. 

Military annual percentage rate or MAPR is the cost of consumer credit expressed as an annual rate and shall be determined according to 232.4 ( c ). Moreover, computing the MAPR in closed-end credit shall be calculated following the rules for calculating and disclosing the Annual Percentage Rate ( APR ) for credit transactions under Regulation Z based on the charges set forth in paragraph ( c ) ( 1 ) of 32 C.F.R.232.4.

Any Upgrade Agreement with an MAPR greater than 36 percent is void. They must be rescinded with a refund of all amounts paid by me to Upgrade.

XXXX XXXX XXXX XXXX TIL APR 30.74 % MAPR Is 35.785 % with the three-rollover payment the MAPR becomes 39.124 %. See Exhibit # 1 attachment for evidence. 

Loan XXXX # XXXX TIL XXXX is 34.48 % and MAPR is 39.6 %. With the XXXXhree rollover payments the MAPR is 40.466 %. Rollover payments are illegal under the MLA.

Company response to consumer: Closed with explanation