Consumer complaint received 2019-11-26
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (NJ)

My loan was sold to Loancare almost immediately after I closed on my condo and it has been a year-long nightmare. Up until now I have been able to resolve issues directly with this company, but I am now at a dead end.

I believe that Loancare illegally forceplaced me into an unnecessary insurance plan ( s ), an action for which they have previously been sued. ( see attachment on class action lawsuit as well as another attachment where loancare was penalized for deceiving consumers ).

I received two letters from Loancare dated XX/XX/19 stating erroneously that there is no flood coverage on my property and also that " comprehensive windstorm '' insurance has expired and they plan to purchase this unless I purchase an additional plan. ( see attached ) I immediately contacted my homeowners association who sent copies of the comprehensive flood and hazard policies that cover, among other things, wind damage. ( see attached ) I received a letter from Loancare dated XX/XX/19 stating the flood and wind coverage they ordered " on my behalf '' have been cancelled. ( they could clearly see my flood/wind coverage is more than sufficient ). ( See attached ) I received another form letter from Loancare dated XX/XX/19 stating my flood coverage is insufficient. ( see attached ) I sent letter to Loancare on XX/XX/19 requesting clarification regarding their confusing and contradictory correspondence. ( see attached ) On XX/XX/19 I called Loancare on another issue : they took money out of my escrow on XX/XX/19 to pay my condo insurance that was due XX/XX/19 and did not pay it. I spoke to XXXX who stated check was sent. I also asked her if the issue with my flood insurance was resolved and she said it was not her department, that I needed to speak to the insurance department. I asked her to please lodge a complaint that I have still not received substantive response regarding my letter that was sent XX/XX/19. 

XX/XX/19 I received a call from XXXX at Loancare insurance department stating they did receive my flood and hazard insurance, and it appears my coverage is sufficient. I advised her that I would hold off on filing complaints with regulatory agencies as she stated they are resolving my issue. 

XX/XX/19 I checked my email and noted and email from Loancare dated XX/XX/19 stating they took {$20.00} from my escrow for " earthquake/other hazard insurance ''.??? ( see attached email ) XX/XX/19 I signed into myloancare.com, and it appears that I have been forceplaced into earthquake, flood, hazard and " other property '' insurance. ( see attached printout ) XX/XX/19 I called Loancare again, finally got a rep on the phone named XXXX who stated she could not see anything about earthquake insurance but stated it did appear I was forceplaced into flood insurance. Advised XXXX that Loancare previously confirmed they received copies of my flood/hazard insurance and sent me a letter indicating they would NOT be forceplacing me into additional policies. XXXX stated she would put me on hold while she looked into this, and then she disconnected the call. 
I called back, spoke to another rep named XXXX who stated she would " only see that there is a charge for {$20.00} for flood insurance ''. I advised her that I previously received letter from Loancare stating they cancelled the flood/wind coverage they ordered " on my behalf '' as they were forced to admit that my policies were sufficient. She indicated there was not much she could do. 

I also called my homeowner 's association and was advised that no other homeowners have been illegally forceplaced into unnecessary insurance plans. 

I would have NEVER chosen this company, but am FORCED to deal with them because my loan was sold. I plan to file complaints with as many regulatory agencies as I can find, and will eventually file suit against them if they do not immediately refund my money and stop this nonsense.