Consumer complaint received 2019-07-20
Company: LoanCare, LLC
State: AL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Loancare initiated the transfer of servicing my mortgage without publishing the new account numbers they established, resulting in Loancare misapplying two of my payments. Currently, I still have one payment that Loancare has not applied to my account, and I am facing the end of the 60-day period that late fee and negative credit reporting are suspended following a mortgage servicing transfer. I fear that my credit will be negatively impacted due to Loancares poor execution of the transfer of servicing of my mortgage. Due to extremely unresponsive customer service, I have spent many hours on the phone, researching the Loancare website, and writing email messages without adequate resolution to my problem. The servicing of my mortgage transferred from XXXX to Loancare on XX/XX/2019. I received a letter from XXXX approximately a week before the loan servicing transferred announcing the change of mortgage loan servicer. There was no mention in the XXXX letter of a change in the account number, but the letter did provide a new address to send payments. I changed the payment address in the bill pay system provided by my bank, XXXX XXXX XXXX XXXX. The XXXX website indicated that the for the XXXX payment check was cashed on XXXX XX/XX/2019. 

On XXXX XX/XX/2019, I received two letters from Loancare. One letter was a notice of late payment, and the other was a letter that provided my new account number. When I called the Loancare customer service number, the recording indicated that the new account numbers were sent out on XXXX XX/XX/2019, nearly a month after the first payment was due to Loancare. I suggest that a better technique would have been to send the new accounts out before a payment was due to avoid the chaos that would result in having to track payments to the proper accounts without the correct account numbers. I then updated the account number in the XXXX payment system, but since XXXX mailed the check for the XXXX payment on XXXX XX/XX/2019, I am not sure if XXXX had already printed the check with the old account number. 

I then attempted to call the customer service number several times but was not able to get through to a representative. I then sent an email through the interface on the Loancare website and included an image of the check Loancare cashed on XXXX XXXX. I never received a response to the email or to a second email I sent as a followup. I have received robocalls every day or two on my work phone telling me to call Loancare, but on most occasions the I was not able to speak to a representative due to the call volume or being put on hold for an excessive period of time. The system once asked for a call back number, which I provided, but I did not receive a callback. 
On about XXXX XX/XX/2019, I was able to speak with a representative who told me she found my payment applied to a different account and that Loancare would correct the error by XXXX XXXX. They did not correct the error by XXXX XXXX, but after a couple more attempts to contact Loancare I saw the XXXX payment was applied on XXXX XX/XX/2019 on the Loancare website. The XXXX payment had not yet posted on XXXX XX/XX/2019. 

On XXXX XXXX, I received a letter from Loancare saying that I was two months delinquent on my account. When I called Loancare, the representative said that they had found the second payment ( due in XX/XX/2019 ) but that it was being applied to the wrong account. They said Loancare would apply the XXXX payment to my account by XXXX XXXX. I also spoke to a manager and requested a letter documenting that any late payment information about my account was due to Loancare misapplying my payments. She said that Loancare normally did not provide such letters, but she would put in a request for me to receive a letter. 

On XXXX XXXX I checked my account and noticed that the XXXX payment had not been applied. I called Loancare ( I was able to get through to a representative immediately this time ) who told me the accounting department was backlogged due to the volume of the XXXX transfer and my payment would be posted by Monday. I then asked how they would be able to post the payment on Monday when they had not even cashed the check for the XXXX payment yet. The representative then indicated that the accounting department might be attempting to apply the XXXX payment twice. My bank, XXXX, indicates that they sent the XXXX payment on XXXX XX/XX/2019 and that it should have arrived by XXXX XXXX. I asked the representative if I should cancel the XXXX payment check and submit another payment, but she said that if I did that and Loancare attempted to cash the original check I would have to pay an insufficient funds fee. I asked her for a solution that I could use to get my payment posted before the first of XXXX ( 60 days after the servicing transfer ) when late fees and negative credit reporting would apply. She could not offer me a solution. I asked to speak to a manager. The representative said no managers were available, but I would receive a callback. I have not received a call back in the 3 hours since the call ended. 

I request help from the Consumer Financial Protection Bureau to resolve this issue as my expenditure of considerable time and energy has failed to achieve a resolution.

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