Consumer complaint received 2020-01-14
Company: LoanCare, LLC
State: CA
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
BLUF : Loancare doubled up a mortgage payment during a servicer change, cancelled our autodraft payment when this redundant charge was paid to the previous servicer, and the reported us incorrectly 30 days behind on our mortgage to our the credit bureaus. Loancare has failed to carry out promised actions from customer service to rectify the situation. 

My mortgage servicer changed from XXXX XXXX Mortgage to Loancare in XX/XX/XXXX. I contacted Loancare customer service when notified of the of change and received information about both online automatic payments and the 60 day grace period for mortgage holders whose servicers change. I was concerned because the change overlapped with my wedding and honeymoon ( where I would be out of the country ) and wanted to make sure the process ran smoothly. I signed up for automatic payments on XXXX XXXX and, based on the information received from your customer service representative, believed that my payment was safely taken care of. 

XXXX XXXX XXXX  received our monthly payments that were due on XX/XX/XXXX and XX/XX/XXXX. We received a bill from Loancare through the mail for a payment due on XX/XX/XXXX, and it states that we would be subject to a late fee if we didn't pay even though we were within our 60 day transfer period between servicers. On XXXX XXXX I set up auto-draft through Loancare 's website. When I noticed that no payment was auto deducted from my checking account, I called customer service on XXXX XXXX and was informed that my auto draft was suspended without my knowledge. Loancare told me I was delinquent in my payment due on XX/XX/XXXX, and directed me to make a payment immediately but that in doing so I would avoid any derogatory information on my and my wife 's credit. This XX/XX/XXXX deliquency was in error, as I had already paid XXXX ( as is permitted under the 60 day window ). I made  the online payments ( XX/XX/XXXX and XX/XX/XXXX respectively ) and then re-signed up for autodraft for the coming month. Loancare did not charge me for a late fee, but Loancare did incorrectly furnish information to the credit bureaus that we were over 30 days late in our XXXX mortgage payment. We have contacted Loancare multiple times and filed disputes with Loancare and the credit bureaus. Over the phone, Loancare customer service stated that they were incorrect in reporting us as late since we were within our 60 day between servicer window and payed within the mortgage grace period in XXXX. 

On XX/XX/XXXX I received multiple notifications that there was a late mortgage payment on my record and that my credit score was negatively impacted. This caused the refinance options I was exploring to evaporate. I called the customer service and filed a dispute. I lodged disputes with all three credit bureaus as well. I wrote the attached letter with my payment history included, which showed how there was a double payment for XX/XX/XXXX and that I wasn't delinquent ( just went to the previous servicer, which is allowed under the 60 days ) and that Loancare made the error in suspending my autopay. My wife followed up with a phonecall on XXXX XXXX and ( after a 3 hours on hold on the phone ) a Loancare supervisor affirmed the error, said that they would rectify the information with the credit bureaus. On XX/XX/XXXX we received a letter from Loancare stating that their information was correct and that the late payment should remain on our records, despite their mistake. At this time the late payment remains in our records.

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