Upstart Loan $435K Debt Collection Class Action Settlement

Consumers who had a loan originated through or serviced by Upstart Network and, after filing for bankruptcy in the eastern district of Kentucky or western district of Kentucky, received communications from Upstart, made payments to Upstart or had their account reported to credit reporting agencies may be eligible to receive a cash payment from a class action settlement.

Upstart Network Inc. agreed to pay up to $435,000 to resolve two class action lawsuits alleging it violated the automatic stay in bankruptcy by sending certain communications, collecting payments and reporting credit information after individuals filed for bankruptcy. The settlement includes an estimated 277 class members.

Who is eligible for an Upstart settlement payout?

Class members must meet the following criteria:

• Upstart Network originate or serviced their loan.
• They filed for bankruptcy in either the eastern district of Kentucky or western district of Kentucky.
• After filing for bankruptcy, they received communications from Upstart, made payments to Upstart or had their account reported to credit reporting agencies.

How much will the class action settlement payment be?

Class members may receive one or more of the following cash payments:

• Payments made after bankruptcy: Class members who made loan or fee payments to Upstart after filing for bankruptcy will receive a refund of their payments plus an additional $800 cash payment.
• Credit reporting after bankruptcy: Class members who had their account, or certain credit information about their account, reported to credit agencies by Upstart after bankruptcy will receive a $100 cash payment.
• Communications after bankruptcy: Class members who received certain communications from Upstart after filing bankruptcy will receive a pro rata cash payment from the remaining net settlement funds after the settlement administrator distributes the above cash payments.

No claim form required

• Class members do not need to file a claim to receive a settlement payment.
• Class members can update their address information online using the notice ID and PIN from the settlement notice by emailing the settlement administrator or mailing a request to the settlement administrator.

Settlement administrator's address: UNIClass Action, c/o Administrator, P.O. Box 23648, Jacksonville, FL 32241

Settlement administrator's email address: info@uniclassaction.com

Payout options

• Paper check mailed to the address provided

Upstart debt collection settlement fund breakdown

The settlement fund will include:

• Settlement administration costs: Up to $25,000
• Attorneys’ fees and costs: Up to $100,000
• Plaintiffs’ incentive award: Up to $10,000
• Payments to eligible class members: $300,000

Important dates

• Exclusion deadline: March 9, 2026
• Final fairness hearing (eastern district): March 19, 2026
• Final fairness hearing (western district): April 7, 2026

When is the Upstart Network settlement payout date?

The settlement administrator will mail payments to class members approximately 50 days after the court grants final approval of both settlements.

Why is there a class action settlement?

Two class action lawsuits alleged Upstart Network violated the automatic stay in bankruptcy by sending certain communications, collecting payments and reporting credit information after individuals filed for bankruptcy.

Upstart denies these allegations and any wrongdoing but agreed to settle to avoid the risk and expense of further litigation.

Sources

1. Class notice
2. Settlement website FAQ page
3. Settlement website key dates page