Consumer complaint received 2020-08-09 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC
State: CA

Complaint narrative:
Here is the letter I sent to the Mortgage Servicer XX/XX/XXXX Dear XXXX XXXX I am in dispute in your bill to me {$1400.00} for flood insurance when regular flood insurance that I have paid in the past 14 years on this mortgage has not been more than {$500.00}. And further I attest that the {$1400.00} that you are calling FLOOD premium is a penalty you are charging me NOT flood insurance as you say because I just paid the XXXX insurance. 

You are charging me for not having flood insurance for XXXX for which you took over the loan from the former company a few months back and yet you are not paying the past year premium. I am disputing this charge because if I had a notice from you 1 year ago that I needed to pay the insurance I would have paid it. Your company didn't contact me that I was lapse in my insurance for the year XXXX until XXXX a year later when you caught it. Why didn't you pay the premium at that time and charge me the {$1400.00} then if I didn't respond? You did not contact me that is why and realized a year later that it hadn't been paid. Charging me the money now does not cure the year that went by with no Flood Insurance. I have made payments on my home and flood insurance for 14 years without missing a beat and here is why. 

The last company that had my mortgage with would contact me if the flood insurance went to them and since I do not have impounds they would always forward me the insurance and I would pay it. Your company did not do that. When you found out that I did not payit was 1 year after the policy was done. If you had sent me correspondence that year that if I didn't pay you would put the premium in force on your end, it would of gotten paid. You are putting it on 1 year after the fact with a 2 month notice and the policy which would have been in arreas. You can not pay the policy in arreas, so why are you charging me unless it is a penalty and if so state that fact. It is not for a policy. I called XXXX to see if I could pay the past XXXX flood insurance and they said it's in the past ( I knew this but wanted to verify this ) So who are you paying insurance to on my behalf for XXXX that is in the past? 

The reason I realized that the policy was not paid is because your company after the year told me it had lapsed and I immediately looked into it and paid for a current policy. Again you took over the last mortgage servincing contract and they always sent me notice and you failed to do that until the policy had already lapsed a year. 

The policy is back in force as I paid for it up front so the last years policy is now gone and there is no paying for that, if there was I would pay XXXX myself the {$500.00} for lapsing. 

My dispute is based on the fact that I have never went without paying flood insurance primarily because I was prompted by the other mortage servicer because they would receive the bill and forward or communicate that it needed to be paid. I further dispute that your company only reported to me that it was due when the policy was over and perhaps you caught it in an audit. And I further dispute that you have billed me for a Flood premium policy b that can not be paid in arrears there for it must be a penalty for not paying. You have now put an impound on my account which did not have an impound to pay for the XXXX flood policy and sent me a policy which can not be valid seeing how XXXX is gone! I have XXXX flood insurance. Please correct this erroneous charge to my escrow which made my payment go up {$110.00}. Thank you

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