Consumer complaint received 2022-11-09
Company: LoanCare, LLC
State: HI
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
I was in a Covid Mortgage Forbearance Plan during Covid with my Mortgage holder, Loancare. When it appeared that the issues from Covid impacting my financial situation seemed to be possibly becoming solved ( which was not an instantaneous process ), I contacted Loancare and asked them if I could work out a modification on my mortgage with them going forward, as I came out of the Forbearance Plan. They said yes and requested a lot of information, forms filled out, copies of Bank Statements, taxes, etc. I complied with all in a timely manner. They told me that I did not have to make payments while the modification agreement was in process, that it usually didn't take that long, and that it WOULD NOT show up as a " negative '' or " late payment '' on my credit report, as I was trying to exit the Forbearance Plan. I asked them this question about my credit reporting every time I talked to someone, which was at least once a month, or more often, and was told every time that they would not be reporting me as " delinquent '' or " late '' during the modification process and exiting Forbearance. I recently found out that they were reporting my payments as " Late '' when I applied for a new credit card a few weeks ago ( which I very much need ), and was denied. The credit card company ( XXXX ) told me their decision to deny me the card was based solely on " late payments '' on my mortgage reported by Loancare. This was a complete shock to me, since I had been in Forbearance, and was assured by all the customer service people that I talked to that this would not be the case, as I was in process for a modification plan, and trying to exit the Forbearance as the economy slowly improved. My credit is otherwise good, I have been making all my payments, and on time, just like before Covid. I had two other mortgage companies that I was working with at the same time as Loancare to get modifications and exit Forbearance, and both of them were able to get my modifications done in a timely manner, did not report me as " Delinquent '' or " Late '' during the exit of the Forbearance into the new loan modifications, and both have been getting timely payments every month ( XXXX of them for well over a year already ) ever since. One of these other mortgage companies is actually even owned by Loancare, their subsidiary XXXX XXXX, and Loancare " spun my mortgage off '' to them without input from me last summer ; but XXXX XXXX also told me I wouldn't be reported as late while we were working out the modification plan, and they didn't! Loancare took an excessively long time to get me a modification offer, has been getting my payments on the new plan since last XXXX when it was finally sent to me, they have taken well over a year to get me that new plan and payment amount, and the paperwork I notarized and sent back last summer finally came back to me only a few days ago, despite me complying timely with their every request and returning the notarized paperwork Loan Modification Agreement to them last XXXX, AND I'VE BEEN MAKING EVERY PAYMENT since I finally found out what to pay, last XXXX. They are STILL reporting me as " Delinquent '' to the credit bureaus, and apparently have been, going back for over a year, since XXXX of 2021. This has done irreparable damage to my credit, and has likely cost me thousands of dollars, including likely receiving higher interest rates on my other loans, due to their credit reporting that I didn't even know about, since I was told it would not be reported negatively. I have made several phone calls to Loancare since I discovered this mid XXXX, to no avail. They tell me there is nothing they can do. They have told me every time I call, that a Supervisor is not available and they will have one call me, but no one ever does. They have reported me as delinquent going back to XX/XX/2021, when I first contacted them about trying to get out of the Forbearance and onto a loan modification, and despite telling me that they would not be reporting it as late or delinquent. I would like this " bad credit '' reporting corrected by them, and also a letter from them to all the credit bureaus ( copy sent to me ) letting them know that I was in a Forbearance transition and was told I did not need to make payments until we knew the new payment amount, and that it was not supposed to be reported as late to the credit bureaus, and that I have been making all my payments, as per the new agreement, in a timely manner for several months now. The correction on credit reporting needs to go back as far as the time when they started reporting me as late ( XX/XX/2021 ), after telling me that they would not be. The credit card company has given me only 90 days to get this corrected. Please help, as Loancare does not respond to me.

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