Consumer complaint received 2017-02-27
Product: Mortgage — VA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: LoanCare, LLC (VA)

Here is a timeline of my problem with prompt payment of a mortgage overpayment with LOANCARE : XXXX XXXX : Without any prior notice, we received a letter in the mail from Loancare stating our mortgage loan was transferred to them from XXXX and that we were to mail in our monthly payment to them. Because we knew nothing of this, we thought this was a phishing attempt. My wife called XXXX and they confirmed that they transferred our mortgage to LOANCARE. XXXX told my wife that they were not going to autodraft our XXXX XXXX mortgage payment and to mail payment to LOANCARE. 
XXXX XXXX : My wife mailed in a check as instructed by the letter from LOANCARE. 
XXXX XXXX : We learn that XXXX autodraft our checking account for our XXXX XXXX mortgage ( after we already mailed in a check for our XXXX XXXX payment ). 
XXXX XXXX : I called LOANCARE to ask if they could apply our duplicate XXXX mortgage payment ( form the check we mailed to them ) towards payment to our XXXX XXXX payment. The customer service rep stated that it was against their company policy to do so and that I would have to go online and request a refund for the check payment once the checked cleared our bank. 
XXXX XXXX : We received a letter from LOANCARE confirming our checking account had been set up for autodraft to pay all future mortgage payments with the first autodraft mortgage payment on XXXX XXXX. 
XXXX XXXX : Our paper check cleared our bank. 
XXXX XXXX : I submitted a request for a refund for the paper check and included a copy of the cleared check. I received an email acknowledgement of our refund request from LOANCARE within minutes. The email said to allow 5 business days for the request to be processed. 
XXXX XXXX : Day 6 and no refund. I called LOANCARE and was informed that my request for a refund was overlooked and was never processed. They told me they would enter it today and it would take at least 10 business days to receive my refund. They also informed me that the first customer service representative I spoke to on XXXX XXXX misinformed me when she stated that I could not apply it to my XXXX XXXX mortgage payment. So now I will have a XXXX XXXX mortgage payment auto drafted when I do not have the refund for the XXXX overpayment returned to me yet. This will cause me to bounce payments and have no money for my food, gas and other monthly needs. To add insult to injury, the LOANCARE supervisor, XXXX, Agent ID # XXXX scolded me and said I should have stopped payment on the autodraft for XXXX XXXX five days prior, and now it was too late to stop the XXXX XXXX autodraft ( but if they did their job, I would have received my refund before the XXXX XXXX autodraft hits ). After being on the phone for 1 hour and 4 minutes, and being put on hold several times, XXXX told me that my account was showing I was paid up until XXXX XXXX. When pressed to ensure our XXXX XXXX payment would not be auto drafted on XXXX XXXX because we were paid up, she said that she could not assure us that would not happen. So in summary, LOANCARE has had duplicate payment since XXXX XXXX, can not stop the XXXX XXXX autodraft and we are stuck with not being able to meet our financial obligations after XXXX XXXX because LOANCARE is holding {$630.00} that we need to pay our XXXX bills with.