Consumer complaint received 2021-10-10
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (DC)

The purposes of my complaint are to inform CFPB of LoanCares poor customer service, predatory loan practices, and to dispute information that LoanCare ( or XXXX XXXX XXXX XXXX ) reported on my credit reports with all three major credit reporting agencies, XXXX, XXXX XXXX and XXXX, that my mortgage payments from XX/XX/2021 through XX/XX/2021 were paid late. 
Effective on XX/XX/2021, LoanCare approved a modification of my mortgage loan. However, I received inaccurate information from LoanCare customer service representatives before, during and after the application process for the loan modification that adversely impacted my credit. For example, in early XX/XX/2021, a customer service representative told me that I did not need to continue to pay my mortgage during the application process. She transferred funds from my escrow account to pay my mortgage in error. When I reviewed my account on MyLoanCares website, I saw two misapplication reversals in the amounts of {$1600.00} and {$1600.00} dated XX/XX/2021. I made an inquiry to a LoanCare supervisor through the website. An electronic copy of this inquiry is attached to this complaint. The supervisor contacted me by telephone and informed me that my mortgage should not have been paid from funds from my escrow account and that the fees were reversed. She assured me that she would make the necessary corrections and LoanCares error would not have any adverse impact on my credit. However, my mortgage payment was reported to all credit bureaus as late because of the false information that I received from LoanCare staff. Due to my receipt of false information from the customer service representative, my mortgage for the months of XX/XX/2021 and XX/XX/2021 were paid by cashiers check in the amount of {$2800.00} on or about XX/XX/2021. LoanCare cashed the check on XX/XX/2021. A copy of this XXXX XXXX cashiers check is provided as an attachment to this complaint. During the application process, my online account was disabled and I was prevented from paying my mortgage online. Customer service representatives also informed me that any information shown on LoanCares website would be inaccurate pending completion of the loan modification process. They said that the process would not be fully completed until late XX/XX/2021 because certain documents had to be filed with the state ( District of Columbia ) and with the U.S. Department of Housing and Development ( HUD ). Although I paid my mortgage on a consistent basis, the receipt of this inaccurate information resulted in a domino effect of my mortgage being reported as paid late to the credit bureaus from XX/XX/2021 to XX/XX/2021. I believe that LoanCare engages in deceptive and predatory loan practices because I was provided false information deliberately to sabotage my efforts to restore my credit. For example, I spoke with several LoanCare representatives who told me that I did not need to continue to pay my mortgage during the loan modification process. However, I received conflicting information from a LoanCare supervisor who said that I should continue to pay my mortgage in a timely manner. Additionally, LoanCare added unknown fees to my account and reported them to the credit bureaus as unpaid although I have never been informed by LoanCare why I am being charged such fees. For instance, I filed a complaint with the CFPB about a {$750.00} attorney fee that LoanCare charged to my account recently in error. LoanCare is preventing me from being able to improve my credit and refinance my mortgage loan with a different lender due to their unfair practices. 
In XX/XX/2021, I had mold remediation work completed in my basement that entailed the removal of all of the walls, insulation and baseboard because they were saturated with harmful mold and moisture. Completion of this project was essential because my son has XXXX and both my son and I were experiencing physical symptoms from the mold such as XXXX, XXXX, XXXX, XXXX XXXX and fatigue. However, the removal of the walls, insulation and baseboard resulted in pests, such as mice and large rats, being able to enter my home through the basement easily. I recently applied for a home improvement loan from my credit union and another lender to remodel the basement, including installing drywall and baseboard, to prevent the entry of pests into my home. I was turned down for the loans because of the adverse information that LoanCare put on my credit reports. This matter is very stressful for me because I need funds to remodel my basement to prevent the continued entry of unsanitary and destructive pests in my home. This is a crisis that presents a serious and dangerous health and safety issue for myself and my son that will likely get significantly worse during the winter months. Due to the adverse information that LoanCare reported to all of the credit bureaus, it will make it difficult or impossible to obtain other housing for safety reasons. I am especially concerned that it will take 90 days or longer for LoanCare to make corrections to my credit report. Therefore, my son and I will be forced to live in an uncomfortable and unsafe home environment because of LoanCares predatory practices and poor customer service.