LoanCare, LLC is a mortgage subservicer based in Virginia Beach, Virginia. It services mortgages for banks, credit unions, mortgage companies and investors, so your loan may have been made by one lender but billed, and reported to the credit bureaus, by LoanCare. If a LoanCare mortgage is reported wrong, such as late payments you made on time, late payments after the loan was paid off, or a balance after a sale or refinance, you can dispute it under the Fair Credit Reporting Act.
What consumers have alleged
In a 2026 federal case in New Jersey (McKenzie v. LoanCare, LLC, D.N.J. No. 2:26-cv-08684), the consumer alleges that his mortgage was paid in full when he sold the home in April 2020, yet LoanCare reported the closed account as 30 to 180 days past due in eighteen months between December 2021 and February 2024. He alleges that LoanCare admitted the error in writing in response to his CFPB complaint, but that the late payments stayed on his Equifax report after his disputes. These are allegations in a complaint, not findings.
How to dispute a LoanCare mortgage on your credit report
- Get all three reports and note exactly how each bureau shows the account: the balance, the status, the date closed and every month marked late.
- Dispute in writing with each bureau that shows the error, and include your proof, such as a payoff statement, the deed or closing statement from a sale, bank statements showing on-time payments, or a loan modification or forbearance agreement. The bureau must reinvestigate, generally within 30 days (15 U.S.C. § 1681i), and must pass your dispute to the company that reported the account.
- The furnisher must then investigate and correct or delete what it cannot verify (§ 1681s-2(b)). You can also dispute directly with LoanCare in writing; for most account information the federal rule requires a reasonable investigation of a direct dispute (12 C.F.R. § 1022.43).
- Send the servicer a written notice of error. For 60 days after a mortgage servicer receives one, it may not report adverse information to any credit bureau about the payment you dispute (12 U.S.C. § 2605(e)(3); 12 C.F.R. § 1024.35(i)).
- If the error comes back “verified” and you have been denied credit, a refinance or housing, or charged more, you may have a claim. Keep every letter and every response.
Talk to a lawyer about a mortgage reporting error
If a dispute did not fix the error, a credit report lawyer can review whether LoanCare or a bureau broke the Fair Credit Reporting Act. The FCRA makes the company that violated it pay your attorney’s fees (§§ 1681n, 1681o), so our case review is free and you pay nothing unless we win. See also ServiceMac mortgages, Onity (PHH Mortgage) and our list of mortgage servicers.
Admitted in Pennsylvania and New Jersey; available to appear pro hac vice in other federal courts.
Common questions
Why is LoanCare on my credit report instead of my lender?
LoanCare is a subservicer. It handles billing and payments on mortgages for banks, credit unions, mortgage companies and investors, so a loan you took out with one lender can be serviced, and reported, by LoanCare.
Can I sue LoanCare for reporting wrong information?
If you disputed the error with a credit bureau and LoanCare failed to investigate it reasonably or kept reporting information it could not verify, you may have a claim under 15 U.S.C. § 1681s-2(b), with damages and attorney’s fees under §§ 1681n and 1681o.
Will a lawyer cost me anything?
No. The FCRA makes the company that violated it pay your reasonable attorney’s fees, so our case review is free and you pay nothing unless we win.