Consumer complaint received 2018-03-16 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC
State: CA

Complaint narrative:
Loancare Services has serviced my home mortgage for more 30 months. I do not know the exact date when they took over servicing the loan. 

I have typically logged in to make payments each month. In summer 2017, there was a problem with the website, and I had to call in. During the conversation, I gave authorization for a monthly payment. The account # routing # used in that transaction was incorrect. I have no idea where the source of the incorrect number - either I gave them the wrong number, they entered a number different than the one I gave them ( over the phone ) or some other error occurred. That should not have been a big problem - mistakes happen. 

However, I was never notified that the transaction failed. The next month I went to make another payment, and discovered that I had been locked out of the website. I called again, and discovered the problem. I requested at that time that they get to the bottom of why I received no notification or alert to this clear data error. 

My payment was not made the following month as well. I can not provide the exact sequence of events, but there were multiple calls both to un-lock the website access and to make the payment. 

After 2 months, we realized that the account number in my record was wrong. We fixed it, caught up all payments, and have been OK since. I have also since set up auto-debit on their site, for the amount of their invoice each month. 

There were two {$110.00} ( that seems pretty outrageous!! ) late charges, which I disputed. Though I never head any conclusion from the dispute, there is now, and has been for 2 months now, a {$270.00} " late fees '' charge on my statement ( which I never receive, but which is available for me to download from the website ). If I call and go through the phone payment process, the total late fee amount is {$220.00}. Who knows where the other {$50.00} comes from. 

It is unclear to me why they did not just charge me the late fees ( they have ACH authorization to charge the amount of the statement ). This seems wrong to me, particularly in light of the fact that they don't send me statements. 

This month, the final straw was that I received an alert that Loancare had registered a 60-day late with credit agencies, indicating I was {$4400.00} behind. This is false, and outrageous. That's where I stand today. 

Loancare 's inaccurate credit reporting has cost me >100 points off my credit scores, and is blocking a home loan approval for a new home I have been trying to purchase for 6 months now. I have engaged a credit repair firm who has gotten their marks removed from XXXX, but the other two still show this inaccurate info, including the most recent incorrect report. 

Before I hire a credit attorney to pursue damages and compel removal of this incorrect information, I thought I'd give you folks a try. I'm optimistic.

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