Consumer complaint received 2018-04-27
Company: LoanCare, LLC
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/XXXX I called my loan servicing vendor to ask why I was being charged a late fee on my account. I logged into my account on line and view the payment history. I found two entries showing monies being withdrawn from my payment or credit history. 

I have always paid on time as I have my banking account set up to automatically pay this mortgage. I was unaware that my monthly payment had increased by {$1.00}. This increase appears to have taken place last month. 

My last auto payment was not applied to my account because it was not the full amount. This company states that any payments that are not the full payment are moved to some " other '' account. 

Because the payment was not applied to my account, this company then charged me a late fee of {$49.00} and I was now in arrears for the full payment. 

I immediately sent a payment to cover the new full amount due and asked that the late fees be reversed - also asking for them to review my account to see that I have never been late and that I currently have an " Excellent '' credit rating and would like to preserve this. 

I have yet to hear back from anyone at the servicing company.

The servicing company said they need proof of payment from my bank - for monies they already have!! I don't understand that. 

On XX/XX/XXXX they finally applied my missing payment or moved funds from this " other '' account to my account and applied appropriately ( escrow, principal, interest ). 

Why are they moving funds from my account into some " other '' account? Are they making money in interest by doing so? This feels like a deceptive and shady business practice. The monies I pay should remain in MY account.

Other issue I discovered while looking at my account are two line items they are labeling as MisapplicationReversal 's. These reversals are removing funds that were applied to my principal, interest, and escrow balances. No one at the servicing company is able to tell me why these reversals are in my account. 

These reversals appear to be reversing credits to my account that were applied as Payment and the other as a PrincipalCurtailment. The description on their site gives no indication as to what these charges, credits, fees, etc are for.

On XX/XX/XXXX I received a letter stating that I had not deposited a refund check sent to me one year prior and to return this letter with my personal information or else the refund money would be transferred to the state. I returned the letter on XX/XX/XXXX and called the phone number listed on the letter. Left a message asking this person to call me back. I have yet to hear from anyone. 

To re-cap and summarize : I was unaware that my payment had increased by {$1.00}. 
I was charged {$49.00} for a late fee when they had all but the {$1.00} My funds were being held elsewhere, not in my account.

The servicing company never contacted me to inform me of the new payment amount. 
No answer from servicing company on my refund check that I never received. 

My experience so far with this servicing company is not the best. I feel their business practices/procedures are sorely lacking and smell of dishonest/shady practices. But this is just my opinion.

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