Consumer complaint received 2023-05-17
Company: LoanCare, LLC
State: CA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Their investigation did not fix an error on your report

Complaint:
In XXXX of XXXX I entered into a forbearance with my mortgage lender, Loancare, due to a direct impact from the National XXXX Emergency. During the time of my forbearance, I was meant to be protected under the U.S. CARES ACT from any negative reporting to the credit bureaus by my lender, being that I had a federally backed FHA loan. After eventually reestablishing a partial loan modification through Loancare 's loss mitigation department, I exited my forbearance and began making regular payments again in XXXX of XXXX. 

On XX/XX/XXXX I sold my home, paying back Loancare in full, closing my account. Upon applying for a new apartment shortly after, I discovered that Loancare had reported numerous 30 day past due delinquencies beginning XXXX, XXXX through XXXX, XXXX. All but two months of this time I was under the aforementioned forbearance. Because of this information on my report, it directly resulted in the denial of my apartment application. 

I disputed this information with XXXX, the service that conducted the credit check for the apartment I was applying to, explaining the information as I explained above. Loancare claimed the reporting was accurate. 

I contacted Loancare to inquire about this. The agent I spoke to at Loancare was able to confirm I exited the forbearance at the time in which I've stated I did. I also have signed and notarized correspondence between myself and Loancare confirming the new agreement and the date it went into effect. The agent told me to file a dispute directly with Loancare providing all of the information, sent from them, that I had. I did so. After one month, Loancare mailed me a letter upon finishing their investigation and claimed that the reporting was accurate. 

I called Loancare back to get to the bottom of this situation. After eventually speaking with someone in a supervisory position, it was explained to me that because my account was technically delinquent right before I entered into my forbearance, which the reason for was directly related to the XXXX Emergency, all reporting after that time was reported as delinquent, or in this case, 30 days past due. I explained to the representative that the way my credit report, based on Loancare 's reporting, reads to any potential future lender, is that I neglected to make payments on my mortgage for well over a year, when in fact it isn't that black and white. I asked if they could contact the credit agency, XXXX, and request my report be fixed to reflect a non-delinquency status during the time I was enrolled in my forbearance with them, which was XXXX of XXXX through XXXX of XXXX. I didn't ask for the delinquency for the month prior to my forbearance be removed, just during the time I was told I wouldn't have negative reporting on my account. The Loancare representative told me that although they were the ones reporting the delinquencies, there was nothing that they could do. She told me I could dispute it with XXXX to have it corrected. 

I called XXXX and filed a dispute with them on XX/XX/XXXX after explaining all of the aforementioned information. XXXX finally finished conducting the dispute today, XX/XX/XXXX and Loancare maintains the information reported is accurate. My report reads the same as it did before the dispute with the exception of my report reading that the overall account is closed and paid.

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