Consumer complaint received 2024-08-22 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Payment process
Company: LoanCare, LLC
State: CA

Complaint narrative:
on or around XXXX I mailed 3 US POSTAL MONEY orders to their processing department, for a total of XXXX, the US Postal Service has a maximum of {$1000.00} for their checks so I had to send in 3 checks total, 2 of them were for {$1000.00} and 1 of them was for XXXX for a total of {$2200.00}. 

About a month later my co-signer said they noticed their credit report stated they had a late payment, that is what triggered us to call and find out what is going on. I first called the week of XXXX and spoke to a rep and said why it showed my payment was late, he then said oh we did not receive any payment, so I asked him to verify and he then realized that oh yes only {$260.00} was applied to my loan, and I said well that is a mistake I sent in 3 US Postal Money orders for a total of {$2200.00}, he then told me I had to send in a request for payment research to XXXX and to also send in any receipts I have, so I did. I explained that I had sent in 3 US Postal Money orders for a total of {$2200.00} but only the smaller of the three of {$260.00} was applied and that they needed to research where my remaining two checks were and apply them. I also submitted the pay stub receipts from my US Postal Money orders. 

I got a response saying they needed a bank statement showing when the funds left my account, and they needed an image of the cleared checks. I explained that they were not drafted from my account, they were purchased from the US Postal Service and only had the stub receipts that accompany the money orders. This was their actual response : The provided proof of payment is insufficient as we can not use receipts. 
We received your request. In order to research this request, we will need a copy of the front and back of cleared check/ money order in PDF format showing the payment. 
Feel free to contact us if you have any further questions. Were always happy to assist you. 

I then replied : You didnt process them! I sent in three US postal money orders and only cashed one! The smaller amount. There is XXXX in US Postal money orders somewhere in your facility! I sent in a total of three US postal money orders two of them were for XXXX each and the third for XXXX who even opened the mail and scanned them did not scan the other XXXX! You need to pull the work and verify! I verified the checks on the US postal website and only the smaller one was cashed! I used to work at a bank and it sounds like the clerk who processed them piggy backed the money orders! 

I then called the bank again and asked to be escalated and I was told once again to submit proof of payment to the XXXX, I told that representative that the department had turned me away and said there was nothing they can do with out an image of the cleared checks, I explained again that there are no images of the cleared items as they are US postal money orders and did not debit my account. So I asked to be transferred to a supervisor in the payment research department. I was then transferred over and spoke to someone and was told they were going to research where my payment was. I called again on Friday asking for an update was told my research case was closed I was livid and angry and explained that cant be as I do not have a resolution I was then transferred and was introduced to XXXX in the escalation department. It appears there are zero notes on my account and had to for the XXXX time had to explain my concerns and issues, she placed me on hold and told me was going to look around while I was on the phone and see what she could find out, she did mention that she found two cashiers checks sitting a drawer or box but did not know if they were mine. She said she would call me as soon as she found out more. I called on Monday XX/XX/XXXX and asked to be transferred to the escalation department and was introduced to a XXXX in that department, she did not have any answers but did say that XXXX still actively looking into it and would call me. XXXX called me on XX/XX/XXXX and basically said it was their fault and whoever processed the check must have not seen the other two and they destroyed my remaining cashier checks. So it was now my responsibility to have those checks canceled and re-ordered. I explained how frustrating this was and that my credit is going to take a hit again, as I was being charged for late payment, she explained that they were going to suppress the credit reporting system so that it would not report as a late payment due to their fault. 

Later that morning on XX/XX/XXXX a different person from loancare called me saying they were from the payment research department and they are still investigating my payment. I explained to her that I had already spoken to XXXX from escalations earlier that morning and XXXX told me to make the payment over the phone if i was able to or go to the post office and have the checks reissued. This person was utterly confused and so was I. I was angry because there is a huge lack of communication at Loancare and I am stuck running around trying to find an answer. I explained to the new person everything I had talked about to XXXX with and she then said she would reach out and find out. 

While talking to XXXX I also complained to that loancare was the one forcing me to use US Postal money orders to pay them, I had tried paying with a bill pay from my bank and they returned the check. I had switched banks in XXXX and added my new bank to their website, they pulled funds from my new account and attempted to also pull from my former account, the former account payment bounced so they barred me for 6 months from making online payments, I was told this when I called in XXXX asking why my payment was returned and they told me that I was barred due to the bounced payment. The alternative option was to set up reoccurring bill pay from my bank and that also got returned. I called frustrated once again asking what was going on! the new rep said oh we actually don't accept bill-pay checks it has to be certified funds, leaving me in the predicament I am now in. 

So in XXXX I had to send in XXXX and XXXX payments together, and I sent a total of 5 US postal money orders to pay XXXX and XXXX. those checks were processed correctly and had no issues. 

I have now had to pay more funds to re-issue the US Postal money orders. I need help from CPFB for a real answer, no one at Loan Care seems to know how to do their job, they all contradict each other and I now have become a subject matter expert on their processes. My mental health is being affected, my credit is being affected, my finances are bing affected, I just want real help and a real answer!

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