Consumer complaint received 2020-11-13
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem — Problem with personal statement of dispute
Company: LoanCare, LLC (CO)

Dear Sir or Madam : I am writing to dispute the following information in my credit report. XXXX, a mortgage company, has declared that I made a late payment for the month of XX/XX/2019. I have worked with my mortgage company to dispute this claim and have ignored my claims and ruled to keep the late payment. I am trying to Refinance my home and the late payment report on my credit detrimentally affects my eligibility for this opportunity. I request that the CFPB assist my in this dispute for late payment and request Loancare follows ethical procedures in their reporting. I have written a statement below formatting the grounds of my dispute. 

Right before closing on our home in XXXX of 2019, we switched home owner 's insurance that would decrease our monthly escrow payments for our FHA loan. However, to prevent having to go back and have the underwriters reconfigure the loan and jeopardize the closing, we decided to close with reporting the obsolete insurance and decided that after closing the mortgage company could then adjust the monthly escrow payment at the beginning of the life of the loan. 

Upon receiving our first mortgage statements, I discussed with Loancare that the monthly mortgage payment would need to be adjusted to reflect the homeowners insurance. Loancare asked that I follow the necessary steps to submit an escrow adjustment request and that it may take up to 2-3 months of investigation to receive a determination from Loancare to adjust the escrow payment. However, Loancare anticipated my first mortgage payment to be made in the Month of XXXX and consecutively for the following months. 

I spoke to Loancare representatives multiple times to understand how to best proceed with making payments while the escrow adjustment was still under investigation. I told the representatives that I did not feel comfortable making mortgage payments that were over what the loan amount actually was. I feared that I would not receive credit for the overpayment or that Loancare would not have any incentive to resolve the escrow adjustment since they would be profiting in my overpayment. 

The Loancare representatives I spoke to all agreed that I should wait until the escrow was adjusted and that they would put " notes '' of my attempts to call to communicate with my lender when I could make a payment and to see if the escrow adjustment had been finalized. Finally, when the process seemed to be extending into XXXX, I spoke to a representative to express my frustration for the tedious process. He stated that the adjustment investigation was almost complete and that I would be safe to make a payment in XXXX. The loancare representative and I made a verbal agreement to pay all three months of the delayed payments in XXXX which was written in the " notes '' at which all Loancare representatives had access to and could refer to in regards to my account. 

Even though I do not have physical documentation of these " notes '' for my Loancare account, I know that they exist. All of my continued conversations with Loancare representatives in regards to the late payment dispute, everyone has been able to refer back to this agreement to pay all three months in XXXX. Apparently my dispute against the late payment had been denied because Loancare claimed that they had resolved the adjustment on XX/XX/XXXX and attempted to contact me once to notify of the adjustment. In Loancare 's perspective, one attempted call was sufficient for notification and 5 days was enough time for me to turn around and prepare to pay. During this time I was completely unaware that Loancare had changed their stance in regards to payment, since ( per our agreement ) I was anticipating to pay in XXXX. 

I have honored and fulfilled every agreement I have had with Loancare. I payed all three months in XXXX as promised and have not made a late payment since XXXX. I find this highly unethical credit reporting. I have made every attempt to work with Loancare and have only behaved in good faith with my mortgage lender to pay what I owe but only what I owe. 

I would like to emphasize to the CFPB that ( 1 ) loancare did not make any meaningful attempts to contact me in regards of my approved escrow adjustment. ( 2 ) loancare and i verbally agreed that I would make payment for all three months in lieu of the adjusted escrow in XXXX once it had been approved. ( 3 ) in the disputed month of XXXX ( which Loancare reports I made a late payment ), Loancare states that they attempted to contact me on XX/XX/XXXX unsuccessfully and made no further attempts to notify me that the escrow had been adjusted and therefore expected for me to make a payment by XX/XX/XXXX. 

Ultimately, the notification for escrow adjustment or to make a payment was not conducted in good faith. Loancare 's claim that I had sufficient time to make payment in XXXX once the escrow had been adjusted is ludicrous and nefarious. I respectfully request that the CFPB assist in my attempts to seek relief from Loancare. 

Sincerely, XXXX XXXX