Mortgage -- Trouble during payment process -- Complaint #5875936
Complaint Overview
Complaint ID: 5875936
Company: Loancare, LLC
Product: Mortgage
Sub-Product: Conventional home mortgage
Issue: Trouble during payment process
State: Tennessee
ZIP Code: 380XX
Date Received: 2022-08-13T12:00:00-05:00
Date Sent to Company: 2022-08-13T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I closed my escrow account effective XX/XX/XXXX. The mortgage company, LOANCARE, re-opened my escrow account, on XX/XX/XXXX without my consent, request or approval and advanced {$1900.00} of funds to pay for a home insurance policy that had already been paid. ( I paid for the home insurance with my own credit card on XX/XX/XXXX ). To correct the issue, I called them, I explained that I did not need an escrow advance since I had already paid for my insurance. They advised to make a payment through the portal for the amount they advanced and call them after I make the payment to have it applied towards the escrow. I made the payment using their portal, on XX/XX/XXXX for {$1900.00} to cover the escrow shortage and requested again that they close the escrow they opened for me. Instead of covering the escrow shortage, they applied the funds I sent to my principle and won't get it resolved despite XXXX phone calls and XXXX requests submitted via their portal regarding the misapplied funds. The only change they made, after repeated efforts to get this corrected, is they applied a portion of the payment to the mortgage payment and left a portion in the principle, but still no funds were applied to the escrow shortage as I had requested. With re-opening the escrow account on my behalf, they have now also increased my mortgage payments which now include an escrow portion. It was extremely difficult to have the escrow account closed last year, it took several written requests and supervisors involved. And now they re-opened it. It seems they are trying to trick customers into retaining their escrow accounts and will completely ignore escrow closure requests. Thank you for your help in reviewing their practices. XXXX XXXX
Frequently Asked Questions
What is Complaint #5875936 about?
Complaint #5875936 was filed against Loancare, LLC regarding Mortgage specifically about Trouble during payment process. It was received by the CFPB on 2022-08-13T12:00:00-05:00.
How did Loancare, LLC respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Mortgage) and describe your issue in detail.
Can I see other complaints against Loancare, LLC?
Yes, visit the Loancare, LLC company profile at readthecomplaint.com/company/loancare-llc to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.