Consumer complaint received 2020-01-08
Company: LoanCare, LLC
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Between XXXX and XXXX of 2019 my loan was transferred from XXXX to LoanCare LLC. Since I have been dealing with loan companies for over 45 years this was nothing new. I began making payments to LoanCare starting with the XX/XX/XXXX payment due date ( check # XXXX written on XXXX and cashed by LoanCare on XX/XX/2019 ). 

I received a notice dated XXXX XXXX that no payment had been received. I immediately wrote to LoanCare through their web site. Finally Ms. XXXX XXXX contacted me through e-mail on XX/XX/2019 asking for copies of checks related to my loan payments. Prior to this e-mail I had sent a letter containing copy of checks, then a packet of check copies ( traceable through USPS since LoanCare has made it quite obvious that they do not seem to know what they are doing ). I sent a second traceable ( via USPS ) packet of checks since this problem was spiraling out of control. In early XXXX I received a statement ( statement date XX/XX/2019 ) indicating that I owed LoanCare {$1800.00}. I have bank copies of check # XXXX written on XX/XX/2019 and cashed on XX/XX/2019, check # XXXX written on XX/XX/2019 and cashed by LoanCare on XX/XX/2019, check # XXXX written on XX/XX/2019 and cashed by LoanCare on XX/XX/2019. Thus indicating all payments were paid in a timely manner. 

In a " Payment Reminder Notice '' dated XX/XX/2019 I again was notified of payment not being received. I have copies of an e-mail on this same date between Ms. XXXX XXXX of LoanCare and myself. Ms. XXXX was requesting copies of payment checks. I informed Ms. XXXX that this would be the FOURTH time I provided proof of payment to LoanCare. I attached copies of the payment checks to the e-mail. I also advised Ms. XXXX, and attached documatation, that my credit rating had taken a dive of over 100 points due to their inability to rectify the payment issue. I also noted the cost to me so far. It was, {$0.00} for letter with check copy, {$7.00} for a traceable packet sent through USPS, and a second traceable packet sent through USPS for a second charge of {$7.00}. I feel I should not have to pay to rectify their screw-up. 

On XX/XX/2019 I received a statement indicating I owe a fee of {$38.00} for having a late charge added to my mortgage payment amount owed. I paid my usual amount NOT including a completely unwarranted late payment fee. Realizing this situation is completely out of control and after checking online regarding people having issues with LoanCare LLC, I found hundreds if not thousands of complains. XXXX alone had hundreds. Many were similar, if not identical, to the situation involving myself. Some even indicate that the process even went to filing a foreclosure on people. Also I found indications of class action suits etc. Since my credit rating had been destroyed, and now I'm facing the potential of foreclosure, I had to make a terrifying decision. I needed to get away from this company before my entire life was destroyed. I felt my only recourse was to pay off the loan to get clear of this catastrophe. I'm XXXX years old and have worked for the last 25 years running XXXX XXXX XXXX XXXX. This involved working 24/7/365. I had managed to save a little money to retire on. Paying off the mortgage would destroy my savings and take all security away from life. The credit rating affected my Insurance quotes, ability to borrow money if I had an unexpected catastrophe, and basically completely negatively affected my whole world. On XX/XX/2019 I went on LoanCares web site to determine what amount I needed to pay off the loan. There is a section with a loan payoff calculator to determine payoff amount. I tried this several times yet it would not work. I contacted LoanCares customer service by phone and requested a payoff amount. The rep. told me it would be sent within a few days. Never received it!! 

On XX/XX/2019 I received two letters from XXXX XXXX of LoanCare LLC. The first letter indicated that the XXXX payment was applied to my account as I stipulated by supplying copies of the payment check. Thus I was completely exonerated. The late fees were removed from my account. The second letter indicated that my credit would be updated in 30 to 90 days. IT WASN'T!!!!! Also in the second letter I was advised that my past payment history up to XXXX was " current with no delinquencies ''. 
 Finally things seem to be fixed. 

I calculated the payoff amount on my own. I sent a cashiers check to LoanCare and it was received on XX/XX/2019. 

On XX/XX/2019 I received a notice that I was 2 payments behind!!!!!!!!!!!!!!!!!!!!!!!!!! This was just 5 days past being told everything was fixed. On XX/XX/2019 I received another notice that I missed a payment, 8 days after being told all was taken care of. 

On XX/XX/2019 My payoff check was returned. I was informed that it was an incorrect amount. FINALLY I was provided with a payoff statement with this rejection letter. The payoff statement included a {$28.00} processing/recording fee AND {$36.00} LATE CHARGE FEE. The very same fee that LoanCares representative XXXX XXXX said was removed in her letter of XX/XX/2019. Reluctantly I made the payoff just to get clear of this clown circus before my entire world was destroyed. As will be stated later in this complaint I also dispute the {$28.00} processing fee since my loan was never processed or recorded. 

A LoanCare letter received on XX/XX/2019 acknowledged the loan payoff. Also noted in the letter was the statement " We will forward the satisfaction/release of mortgage to the courthouse for proper removal of lien ''. As of this writing I have not received any paperwork such as notice of payoff on lien, Deed of Trust etc.. 

On XX/XX/2019 I sent an e-mail through the LoanCare web site requesting paperwork substantiating that my loan was paid and the proper paperwork would be provided to me. On XX/XX/2019 I received an e-mail stating that I needed to allow up to 120 days for the release of those documents. It has exceeded that time frame as of this writing. Upon doing research for this letter I discovered that the Colorado Revised Statute 38-35-124, ( Requirements upon satisfaction of indebtedness ), requires satisfaction of an indebtedness needs to be completed within 90 days. I now contest the processing fee charged since LoneCare neglected to actually process the release of loan. 

The final boondoggle was the receipt of their standard " beg off '' ( or as I prefer to call it a " lets give the customer a XXXX  letter '' ) saying they received a notice of error ( never stating what the original notice was about ) on XX/XX/2019. Note : this was over 2 months past the time the loan was paid off. These XXXX  letters seem to be LoanCare 's standard response to any issue. It does not indicate the initial issue and are sent out well beyond the initial complaint. Thus creating a completely foggy idea as to what they are referring to. When I researched this company online this standard form or XXXX  letter seemed to be the response to any and all complaints and issues. The intriguing part of the XXXX  response was that I received it on XX/XX/2019 TWO MONTHS past paying the loan off. I have no idea what prompted this XXXX  letter. These folks seem to send this XXXX  letter out like candy. Obviously they have no notion about what they are doing. 

CONSEQUENCES : 1 ) LoanCare LLC has unjustifiably and completely destroyed my credit rating. Their idea of a fix was to wait months to see if it recovers. To me that is completely unacceptable. 

2 ) LoanCare LLC has stolen money from me in the amount of {$36.00}. By their own admission, in the letter of XX/XX/2019, " NO DELINQUENCIES '' exist. Yet, they decided to add that amount as a delinquency erroneously into the final payoff statement. 

3 ) LoanCare LLC has forced me to send numerous copies of checks to them to prove I made payments. The check copies indicate all payments were on time. Thus LoanCare should have to reimburse me for the expense they incurred on me without justification. They were in possession of their records indicating that the payments were made. Even their web site showing the accounting for the loan indicated the payments were made. Forcing me to justify them was ludicrous. The accounting is as follows. Initial letter with copies of checks {$0.00}, 2 traceable mailings of check copies at {$7.00} each totaling {$14.00},,,,,,,,,, for a grand total of {$15.00}. 

4 ) LoanCare LLC charged me {$28.00} fee for processing the paperwork to close the loan. I have not received my deed so obviously a fee for processing it is absurd.

5 ) I have recently tried to buy auto insurance. I was repeated asked by numerous Insurance Companies about my credit rating. Since LoanCare LLC has destroyed my credit rating I'm sure there is a detriment that I will suffer because of LoanCare LLC. Not to mention all the other life experiences that are affected by ones credit rating.

6 ) The damage to me is incalculable. LoanCare LLC has destroyed my retirement. I spent the last 25 years running XXXX XXXX XXXX 24/7/365. Over that time I was able to squirrel away a frugal amount of money so that I could retire and be able to survive. Since I'm now on a very fixed income my little savings was the only security knowing I could endure/survive an economic issue. Since I had to almost completely drain my meager savings to pay off this loan to avoid the results of a rogue loan processor I no longer can endure even the most mundane of economic issues. If, for example, I need to replace the engine in my 20+ year old pickup truck, that has XXXX miles on it, I now have to worry about eating, or fixing my truck. LoanCare LLC has completely destroyed my future security. I'm XXXX years old with a XXXX XXXX XXXX who now has to try to find work or a way to regain what little security I had. Since LoanCare LLC destroyed my credit rating, and having a fixed limited income, trying to refinance my house would be economic suicide. Why should I have to suffer the consequences of a rogue loan processor?????????????????

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