Consumer complaint received 2022-07-07
Company: LoanCare, LLC
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I dont do Escrow with my Mortgage Company . I pay for my hazard insurance, property tax and HOA since XX/XX/XXXX when I closed the house. I have never been in delinquent whatsoever in paying property tax, HOA, Home insurance, and mortgage since XXXX! 

In XXXX LoanCare tried to pull same scenario - They claimed they had not received the hazard insurance so I had to go at my insurance agent and was surprised at Loancare cos my insurance agent showed me proof of sending insurance on time and was surprised they even contacted me since they are the agent that LoanCare should deal with. ( Will furnish upon request ) XXXX early part of the year, LoanCare sent an email about wanting me to add about XXXX to my escrow I was surprised so I called them to let them know I dont do escrow. The representative I spoke with told me to ignore the email because it was a mass email soliciting for escrow or something so I ignored it. 

XXXX XX/XX/XXXX - I renewed my home insurance with XXXX and paid in full ( will furnish upon request ). I went out of the country for a couple of months when I got back to the US in XXXX, I found out LoanCare had purchased insurance in the amount of XXXX plus similar to the email I received earlier about running shot of Escrow.cos they claimed they never received my renewal policy. They also claimed XXXX ignored to talk to them which I found it odd.They made me aware that if I provide proof of insurance, they will remove the escrow and everything will go back to normal between 7-10 business days. I even had a lady hang up on me and even reported her but nobody called back as promised. I uploaded proof of insurance and also faxed it in to expedite the process I followed up couple of times and in XXXX the representative confirmed that travelers insurance was now on the mortgage instead of their own. I inquired about the Escrow situation and even requested a rush request to remove it. Again, they informed me they would take care of it. I called back in XXXX to check on the escrow. Once again, they promised to escalate and get the issue resolved in 7-10 business days. As usual, they promised to call me back instead of me calling but they never did.

I assumed theyve had ample time to take care of it so I did not call in again. Recently, XXXX XXXX reduced more than XXXX of my credit limit. XXXX also reduced more than XXXX of my credit limit. Some banks also denied credit increase due to credit report. Some banks including XXXX also closed my account due to credit report. 

On XX/XX/XXXX, I received an email from XXXX XXXX XXXX XXXXXXXX that they have closed my account due to credit report and stated in their letter multiple delinquency of my real estate / mortgage etc. XXXX XXXX - XXXX XXXX XXXX also closed my account due to info on my credit ratings. I called LoanCare to inquire about when I have ever been in delinquent only to find out they never removed the so called negative escrow they created after showing proof of insurance. As such they sent me to collections to receive harassment calls claiming I have been in delinquent and also used that to report to the credit agencies. I requested they rectify the situation ASAP. Not only did they make me talk to 3 people XXXX, XXXX or XXXX and XXXX, they asked me to write a request to rectify my credit reporting to a different dept. I asked them why they couldnt do it since they manufactured the issue and ran with it.why should I be the one to fix it. Obviously, they gave me the standard answer - I have requested to escalate your concern and check back 7-10 business days.

I talked to an attorney who advised to get a copy of past year statements and payments for him to review. When I called, the automated message indicates I am one month behind mortgage payment and that's absurd because my 24 months bank payments activities does not show in delinquencies. They also informed me that they will send an escrow check to my mailing address. How am I entitled to a refund if you have sent me to a collection agency and also reported me to the credit bureau as being in multiple delinquencies ... ... just doesn't add up I have a copy of 24 months bank payments activities for mortgage payment from my bank and have not been in delinquent. I also have a copy of XXXX insurance that I renewed and paid in full before XX/XX/XXXX. Please Let me know the docs you will also need so I can send them.

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