Consumer complaint received 2018-08-30
Company: KEYCORP
State: MA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
Key Bank Perpetuating a Fraud. 

On XX/XX/XXXX, I wrote two checks to pay for a title search to obtain a mortgage from what I thought was XXXX XXXX XXXX, under the name of XXXX XXXX XXXX, which I had found was bought out by XXXX  XXXX XXXX. 

As it turned out, this was a loan scam, and the person who cashed the checks was not a mortgage loan officer or worked for any bank. He was able to cash the two checks made out to XXXX XXXX XXXX with a fake stamp and a fake signature through Key Bank, which has stonewalled me with regards to my claim, stating that only my bank has the right to put in the claim. XXXX XXXX which is my bank has reviewed the checks and the agents from the Fraud Department at XXXX have determined that the signature is fake because this should have gone in as a deposit into the Key Bank account holder 's account, which by the stamps on the back was not put through as a deposit. 

At the time as I saw the checks being cashed out, there was only supposed to be one check for the amount of {$1700.00} and two checks were cashed as seen from my online bank account. The checks were written on XX/XX/XXXX and the money was withdrawn from my account on XX/XX/XXXX. I immediately contacted my Bank which is XXXX XXXX, and told them to put a stop payment on both checks on XX/XX/XXXX. XXXX XXXX refused. 

I then put in a Fraud Claim, which was initially denied, by XXXX XXXX as I wrote the checks. The agent at XXXX XXXX never told me that both my signature and the person who cashed the check 's signatures must be valid and not forged. The person who cashed these checks was not the intended recipient and therefore forged their name onto the checks to commit mortgage fraud. 

I found that there is evidence Key Bank, has been perpetuating a Fraud even before I became a victim. The State of Washington has issued a Fraud Alert, which I am attaching to this complaint. Key Bank as denied my claim with the reference number XXXX, even though they have been provided an affidavit of fraud. Furthermore, they had refused to disclose the person, whose account this was cashed against. 

Since the payments were mailed, this is also mail fraud and XXXX XXXX XXXX   stated that they were a direct mortgage lender, who refinance the original mortgage on behalf of my brother and myself at the mortgage rate of 2.99 percent and lower the payments from XXXX a month to XXXX. 

I already provided a notarized affidavit of forgery, which I signed and is attached to this complaint. 

Key bank is now refusing to refund the checks mentioned above, on the grounds that they need an affidavit of forgery from XXXX XXXX XXXX, is a fake company and signed with fake signatures. 

Therefore Key Bank is perpetuating a Fraud, by not disclosing the person who cashed the checks, knowing that they are liable for the damages or possibly closing that account knowing that it is being used to perpetuate a fraud. The bank is also refusing to disclose any information, as to who cashed the checks and therefore are perpetuating this fraud. 

Thank you for your time and assistance.

Company response to consumer: Closed with explanation