Consumer complaint received 2024-01-10
Company: LoanCare, LLC
State: MD
Product: Credit reporting or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a company's investigation into an existing problem
Sub-issue: Their investigation did not fix an error on your report

Complaint:
Loancare refuses to update my credit history and continues to report me as XXXX days late on a loan since paid-off. The issue is, according to Loancare, I should not have received a Payment Deferral Agreement Offer. Instead they say underwriters or some other internal investigative team discovered my loan was restricted by my investor and should have never been granted the forbearance in question. Therefore, Loancare corrected their error, which immediately put me in arrears and multiple month 's late. The multiple payments I sent based on my executed Payment Deferral Agreement Offer were then put into suspense and/or applied to previous balance, resulting in additional months of missed payments according to them. 

Loancare also consistently showed differing, erroneous account status and amounts due both on their website and during calls with multiple agents and management spanning many months. 

Below is an initial overview of the issue and my first of many attempts to resolve the issue. However, there is plenty more including detailed notes from multiple calls with Loancare representatives over several months. 

XXXX. On XX/XX/2022 XXXX XXXX received a Forbearance Plan Offer ( attachment A ) issued due to XXXX XXXX indication that his ability to make payments on his loan was negatively impacted by the XXXX pandemic. In the letter, Loancare confirmed monthly payments were paused effective XX/XX/2022 with an expiration date of XX/XX/2022. The communication further noted that while payments were not forgiven, XXXX XXXX could engage with Loancare at the end of the forbearance term for a payment solution, should he continue to need assistance after XX/XX/2022. Solutions included, but were not limited to, repayment plan, payment deferral, among others. 

XXXX. On XX/XX/2022 XXXX XXXX received a Payment Deferral Agreement Offer ( Attachment B ) from Loancare indicating he was approved for a payment deferral which would : a. Adjust the due date of the following scheduled monthly payments, making the mortgage current ; b. Defer the scheduled repayment of the total XXXX past-due amounts to the maturity date of the mortgage or upon sale or transfer of the property, refinance or payoff ; c. Waive any late charges. 
According to the offer instructions, XXXX XXXX returned the signed offer to the indicated address within the acceptance period and waited for further communication from the Loancare team indicating the following scheduled monthly payments, as indicated in the notice. 

XXXX. On XX/XX/2022, XXXX XXXX received a Notice of Default for failure to pay amounts due ( Attachment C ). The monthly payments included in the notice ranged from XX/XX/2022, to XX/XX/2022. XXXX XXXX was required to make full payment on the amount of {$9700.00} by XX/XX/2022, to cure the default. 

Given XXXX XXXX entered a Forbearance Plan from XXXX to XX/XX/2022 and then accepted Loancares Payment Deferral Agreement Offer, my clients dispute the Notice XXXX XXXX from XX/XX/2022. They further request Loancare immediately halt any foreclosure procedures against them and issues them with the new scheduled monthly payments, as indicated by the XX/XX/2022 notice.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation