Consumer complaint received 2026-01-12 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: LoanCare, LLC
State: RI

Complaint narrative:
Previously, we have had issues with LoanCare that required us to get our RI State rep ( XXXX XXXX ; caseworker XXXX XXXX ) and Veteran Affairs involved due to mismanagement of our account from XX/XX/XXXX to XX/XX/XXXX. I can provide further details about this incident if needed. This year, they have misallocated payments we made on XX/XX/XXXX for {$1500.00} causing our mortgage to fall behind again because the misallocation was not reversed and we were told our mortgage was going into default without payment. Despite this being their error, we agreed to a payment plan on XX/XX/XXXX with an initial down payment of {$3100.00} and XXXX additional payments of {$1900.00} each month until XX/XX/XXXX at which time our payment agreement states if each payment is made on time, our account will be current. We have documentation evidencing we made payments on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX to complete our agreed payment plan and bring our account current. LoanCare confirmed the payments were received. However, they were again misallocated by those responsible for processing and upon attempting to make our XXXX mortgage payment discovered they had not made our account current and were requesting a mysterious additional mortgage payment in order to make it current. They confirmed we completed our obligations in or payment agreement as per the documented agreement, but again because of their misallocation of our payments needed us to pay more * again *. We do not know where our money continues to go or why they continue to miscalculate or mismanage our payments. I have called to speak with a representative, then with leadership at least once a week every week since XX/XX/XXXX and each and every time they confirm we did what was asked of us, but they dont know what the problem is on their end. We told them we refuse to give them more money because our payments continue to be misallocated, and though we have the XXXX and XXXX mortgage payments in our savings we will not pay them until they correct the error to prevent our payments being misallocated again. After countless hours for months on end, we have never received any reconciliation other than we escalate the situation and call you in XXXX hrs and no one calls back, so we have to and get the same story over again. On XX/XX/XXXX, we received a letter that our mortgage is now in default. They have also reported our late payments against our credit report. I am now contacting Veteran Affairs again, our congressman again, as well as SCRA, RI Housing ( XXXX XXXX ), and additional legal representation for the possibility of a lawsuit for financial damages due to their mismanagement of our payments. Considering a simple XXXX search for LoanCare gives them an extremely low rating ( XXXX ) with many complaints similar to mine, it doesnt seem unreasonable to anticipate a class-action lawsuit in due time which I have no problem initiating.

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