Consumer complaint received 2023-06-10 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC
State: TX

Complaint narrative:
Account Payment Application and Debit Discrepancies Dear LoanCare/XXXX  XXXX  XXXX XXXX XXXX hope this letter finds you well. I am writing to bring to your attention some concerning issues regarding the application of my mortgage payments to my account. Despite consistently making timely payments, I have noticed discrepancies and irregularities in how my payments are being handled, specifically related to the allocation of funds and the debiting of amounts that I have no knowledge of or consented to. 

To illustrate my concerns, I would like to refer to a recent example. On XX/XX/XXXX, I made a payment of {$4500.00} towards my mortgage account. However, to my surprise, this payment was initially placed in a suspense account without any justifiable reason. On the same day, two different amounts, {$4500.00} and {$2600.00}, were posted to my account. Additionally, there have been debits made from my monthly payments without proper explanation or prior notification. 

One such debit includes an escrow advance of {$2300.00} on XX/XX/XXXX, which was deducted directly from my monthly payments. It is important to note that I was not informed about any such escrow advance, and this deduction has led to an ongoing and seemingly infinite debit on my account. Furthermore, a hazard insurance disbursement of {$2500.00} was also taken directly from my monthly payment, which raises concerns about the transparency and communication surrounding the management of my account. 

As a responsible borrower, I have consistently fulfilled my financial obligations by making timely payments, and it is my expectation that these payments are applied in a fair and transparent manner. I firmly believe that my payments should be primarily allocated towards reducing the principal balance of my mortgage rather than being diverted to cover various shortages or debits that I am unaware of. 

I kindly request that you thoroughly investigate these discrepancies and provide me with a comprehensive explanation of how my payments have been applied to my account. It is essential that I have a clear understanding of the debits made from my monthly payments and any outstanding balances that need to be addressed. I also urge you to take immediate corrective action to rectify any misallocations and ensure that my payments are correctly applied to my account going forward. 

Moreover, I would appreciate your cooperation in providing me with detailed documentation pertaining to the debits made from my account without my knowledge or consent. It is my right as a borrower to be informed and have transparency regarding any financial transactions related to my mortgage. 

I believe that resolving these issues is crucial to maintaining a mutually beneficial relationship. I value the opportunity to work together towards an equitable resolution and to restore the proper handling of my mortgage payments. I kindly request a prompt response within [ mention a reasonable timeframe ] to address the concerns raised in this letter. 

Thank you for your attention to this matter. I look forward to your prompt response and a resolution that ensures the accurate and transparent application of my mortgage payments. 

Sincerely, YOU ARE TAKING MONEY FROM MY MONTHLY PAYMENTS AND SAYING THAT I AM BEHIND IN PAYMENTS. YOU ARE TAKING ESCROW ADVANCES AND INSURANCE FROM MY MONTHLY PAYMENTS. I DO NOT HAVE MONTHLY PAYMENTS BECAUSE YOU ARE TRYING TO SATISFY ESCROW ACCOUNT. 

YOU ARE FULL OF SUBTERFUGE AND MALICE. 

XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation