Consumer complaint received 2023-07-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC
State: CO

Complaint narrative:
In XXXX of XXXX I was informed that my Homeowners Insurance had come due with my lender- LoanCare automatically assigned to me which at the time was XXXX XXXX. I decided to shop around for another carrier as I felt that their rates were too high. I called XXXX XXXX and obtained a policy from them which was more than half of the cost of my policy with XXXX XXXX so I called my LoanCare and spoke to a rep with them. I explained to her the situation and I told her I would just pay out of my pocket for the cost of the new insurance. She instructed me not to as it would mess up their books for my mortgage. She told me I needed to cancel my policy with them and since they had already paid for the policy that I would be refunded and to cash the check for the amount of the refund with XXXX XXXX in the amount of {$1200.00}. So per their advice, I cashed the checked to my account and then paid them back via their payment site to which they applied that amount to my escrow ( found this out after the fact ). They also told me to submit the NEW policy with XXXX to their email which XXXX and they would reimburse XXXX for the new policy DIRECTLY. So I emailed them ( which I have a copy of ) and received a confirmation back from them stating it had been received. Fast forward to XX/XX/XXXX I get an email from XXXX stating that the payment from the new policy had not been received yet from LoanCare. I then call LoanCare AGAIN and tell them that my policy is in jeopardy of being terminated by XXXX if they dont pay the new Homeowners Policy. I give them XXXX  address and the gentleman I spoke with stated he would overnight the check to XXXX. I called XXXX back and let them know and they agreed that they would hold off on canceling the policy a week for the check to arrive. Fast forward to XXXX of XXXX, I had to renew my auto insurance policy with XXXX and they then inform me that they never accepted payment for my Homeowners policy and that it was canceled as a result. I then contacted LoanCare obviously very upset and frustrated that they had not paid XXXX and I went almost 6 months without coverage and asked them since they dropped the ball how they were going to rectify the situation. They took no accountability ( even though they cashed and received my payment for the previous Policy ) and told me not only were they not being held accountable for their error but they were also going to charge me {$1300.00} for a policy for the lapse in coverage that they failed to pay! 

I am extremely frustrated, disappointed and disgusted at the way they have handled this matter. All of their customer service personnel either dropped the call, put me on hold or transferred me to a supervisor who did nothing and failed to resolve the issue. I contacted the XXXX XXXX XXXX  who reached to them about the matter but ultimately nothing was addressed or fixed. My Loan # is XXXX with LoanCare. I have records and documentation where I followed their instructions to pay for my then NEW policy to which they never did. I am asking for full compensation back from that amount as well as for them to cover the amount which they have since applied and added to my new mortgage. 

If you XXXX this companys name, you will see by their reviews online that they have a very long history of taking advantage of their customers. Thank you for addressing my concerns! 

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