Consumer complaint received 2018-05-23
Company: LoanCare, LLC
State: MD
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
I contacted Loancare on XX/XX/XXXX after my insurance company ( XXXX XXXX ) sent me a bill for the unpaid Hazard Insurance that was due on XX/XX/XXXX. I was transferred around to multiple people, who stated that they would not pay a bill until they received an evidence of coverage document. I then contacted my insurance agent, and was told that multiple bills and coverage documents had been sent going back to the beginning of XX/XX/XXXX. My insurance agent assured me that they would generate another document and send it that day. I was copied on the document that was sent to Loancare on XX/XX/XXXX at XXXX XXXX ( Eastern ). 

I called my insurance agent on or about XX/XX/XXXX to see if payment had been made, and found out it had not. I again contacted Loancare to determine why, and the person on the line was very irate, and told me that it would be paid, but refused to commit to a timeline. 

I contacted my insurance agent again on XX/XX/XXXX to see if payment had been made, and again, found is was not. I contacted Loancare again, spoke to someone who transferred me to " the insurance division ''. I spoke to a " XXXX '' who told me that a check was being cut and would be overnighted - being mailed on XX/XX/XXXX, and told me that I could again call in tomorrow to get the check number and XXXX tracking number, but that they would not follow up with me. I asked why it took so long to get the insurance paid, considering that there was plenty of money in my escrow account, and the bills had been submitted to Loancare for several months. XXXX stated that there was a " disbursement hold '' but that it had been removed. I questioned what that is, who and why it was there, but she could not answer, so she sent me back to Loancare ( apparently, the " insurance division '' is a separate company ). I was transferred back, and requested the who/when/why of this disbursement hold. The lady I spoke with said that there is no hold, and she can not see anything about it. I requested to speak with a manager, and after about 10 minutes on hold, spoke with XXXX. She reiterated that since there was no hold, she could not tell who/when/why. I requested that she research why and tell me. She stated that she would have to contact another department and await a response, but refused to commit to following up with me by a specific date. ( I'm concerned that my insurance is going to lapse, as I can not trust that Loancare will have paid the bill ) I stated this to XXXX, who " understands my concern ''. I asked that she follow up by Monday XX/XX/XXXX, however, she refused again to commit to a date. I reiterated that the insurance MUST be paid before XX/XX/XXXX to avoid a lapse in coverage, however, she stated " the insurance division said they are sending a check ''. I reiterated that I could not trust that, since Loancare has been receiving bills for over 3 1/2 months and still had not paid it. I requested to speak with her manager, and after a long hold, was transferred to a " XXXX '' voicemail box. I left a message to him to get back to me no later than XX/XX/XXXX so that I can guarantee that my insurance is paid properly. 

In looking at my account while speaking with XXXX, I noted and asked her why all the escrow disbursements to date are late : XX/XX/XXXX insurance bill deducted from escrow on XX/XX/XXXX ; and XX/XX/XXXX State/County taxes not paid until XX/XX/XXXX. In both cases, there was an excess balance in the escrow account, so there should have been no reason to pay these late. 

It appears to me that Loancare is intentionally holding onto escrow funds beyond due dates of disbursements solely to reap interest on their customer 's money.

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