Consumer complaint received 2019-10-11
Company: LoanCare, LLC
State: MN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Loancare , LLC began servicing my loans after servicing was transferred from XXXX XXXX. These are loan numbers XXXX and XXXX. On XXXX XXXX, 2019, I obtained payoffs for both loans through XXXX XXXX, 2019 in the amounts of {$19000.00} and {$1300.00}, respectively and sent two cashier 's checks each attached to a copy of the corresponding payoff statement, with loan numbers and amounts highlighted. Loancare received these checks via certified mail on XXXX XXXX, 2019. 

Loancare improperly processed these payments, applying both to XXXX resulting in a complete payoff of that loan, and an additional " escrow '' payment of {$1300.00} XXXX see attached documentation from online interface ). No payment was applied to Loan XXXX. 

I called XXXX on XX/XX/2019, and was assured there would be a full resolution of the matter by XXXX XXXX, 2019. When I reviewed my online statement XXXX XXXX, 2019, there had been no resolution. I again called on XX/XX/XXXX and re-explained the entire situation again. I was told that because it had gone to escrow it was frozen and they could not properly apply the payment. The person told me there was nothing she could do but that I could speak to a supervisor. I was transferred to a line that said no supervisor is available and instructed me to put in my phone number, which I did. I later received a call from XXXX, employee # XXXX. 
I asked her to acknowledge that this was their fault, and that they had misapplied my payment and now were refusing to correctly apply it. She said that was the procedure and that this was an automated system and no human received the documents. This is plainly untrue, because a human signed for them, but be that as it may, I asked if any of their payoff documentation said multiple loans must be in different envelopes. She said no, but a person is expected to apply deductive reasoning and that I should have realized this would happen and sent them in separate envelopes, despite there clearly being no instructions to do so. 
I also informed them that due to their error I had to ( i ) purchase another cashiers check which costs {$10.00}, and ( ii ) send that certified mail, which would cost another {$4.00}. She professed not to understand, saying I could just make my regular payment. I again explained that payoffs were required to have cashiers checks, and since they had already misapplied the funds once, I of course would send certified mail. Since my loan balance was less than one months payment, I could not simply make a regular payment. I told her I believed that they had committed theft with respect to my money by not properly applying the payoffs as instructed, and then charging me additional fees and making me incur additional fees, as well as charging interest. She promised that a hold had been put on my account so that no late fees could be charged, etc. 
XXXX said a flag was on the account so I wouldnt incur a late fee. I asked if the loan would still accrue interest even though I made the payoff in full compliance with their instructions, and she said it would. I asked if she could give me a new payoff, and she said she would. She provided that, and it was in the amount of {$1300.00}. I told her that I expected to be made whole based on the {$10.00} cashiers check I would have to purchase, plus the {$4.00} certified mail and the additional {$4.00} interest they were charging me on money they had already been paid and she refused. This totals {$18.00} in direct damages, and does not take into account the damages that other people likely would have incurred or the amount of time I spent. I believe that these abusive practices should be stopped for the benefit of consumers.

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