Consumer complaint received 2021-07-21
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (MA)

Due to a payment processing error with my mortgage, my account has been listed as delinquent for several months despite the fact that I have made a timely payment every month. My account has been reported to the credit bureaus as delinquent, which caused me to be denied when applying for credit. I have spoken with your customer service department by telephone and have not been able to resolve the issue, so I am submitting this written request to explain the situation and ask that you resolve it as quickly as possible. Time is of the essence because this mistake continues to damage my ability to obtain credit and is causing me financial hardship. 
The issue that arose is as follows : at the beginning of 2020 my mortgage payment was {$2600.00} due on the first of each month. I made the XX/XX/2020 through XX/XX/202 payments in advance of the due dates, and these payments are correctly reflected on my account statement. The issue began with my XXXX payment. I made the usual payment 0f {$2600.00} on XX/XX/2020. Instead of being applied to the XXXX payment, this amount was places in suspense, and then applied toward my principal on XX/XX/2020. I was not contacted by customer service or informed of any issue. As far as I knew, I had made an XXXX payment well in advance of the due date. On XX/XX/XXXX, I made another payment of {$2600.00}, which I reasonably believed was a timely payment for XXXX. This amount was also applied to principle. On XX/XX/XXXX, my account was assessed a late fee since no XXXX payment had been reported on my account. 
On XX/XX/XXXX, still unaware of any issues, I made a {$2600.00} payment for XXXX. Around halfway through the month, I was informed that the payment had increased to {$2700.00} per month after the annual review of my escrow account, and I needed to pay an additional {$120.00}. I paid the additional amount on XX/XX/XXXX, and the payment was applied on XX/XX/XXXX. No one mentioned that the amount was applied to XXXX as a late payment and that now my XXXX payment was reflected as late. As far as I knew, I was caught up through XXXX and my next payment was not due until XX/XX/XXXX. I made that payment, in the amount new amount of {$2700.00} on XX/XX/XXXX. I made three more payments of {$2700.00} during 2020. They were made on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. Each of these was reflected as a late payment for the previous month. 
The total amount of mortgage payments due in 2020 was {$32000.00} ( {$2600.00} for the first seven months and XXXX for the last 5 months ). My actual payments are well in excess of this, totaling {$37000.00}. I never indicated that any of my 2020 payments were intended to be applied directly to principal instead of to the monthly amount due. That action was taken in error and without my knowledge, leaving my overpaid mortgage account listed as delinquent and accruing late fees. 
I am writing to request that you reverse the XX/XX/XXXX and the XX/XX/XXXX payments that were incorrectly applied to principal, and instead apply them as a timely payment for XXXX. This will result in all the other 2020 payments being applied to the appropriate months as timely payments. Please reverse all the late payment charges applied to my account, since the payments I submitted, once they are correctly applied, will have covered all payments due for 2020 on or before their due dates. Please contact the credit bureaus IMMEDIATELY and have all reports of delinquency removed from my credit history.