Consumer complaint received 2017-05-05
Company: KEYCORP
State: CT
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
I have a HELOC that I opened at XXXX XXXX XXXX in XXXX. XXXX XXXX was purchased by XXXX XXXX XXXX. The loan was serviced correctly and reported to the credit reporting agencies properly the entire time. Key Bank purchased XXXX XXXX XXXX in XXXX. Since Key Bank took over, the loan has not been serviced or reported to the credit bureaus correctly. The first problem that I noticed was that my statements started to have the wrong draw period end date in XXXX of XXXX. I reported this to my branch manager, and he researched it. Loan servicing told him that the loan had to be input into the system with the incorrect date in order for it to bill correctly because Key Bank did not have the same type of loan and the only way to get it to bill correctly was to have the wrong date. I then noticed that my credit score started dropping. Upon reviewing my credit report, I noticed that the loan was being reported as an installment loan with the outstanding principal balance as the credit limit, and not a line of credit with the actual credit limit. When this was brought to the attention of the Executive team at Key, they investigated and came to the conclusion that they did nothing wrong and that the incorrect date was just a small " inconsequential insignificant inadvertent error '' The attached letter dated XXXX addresses this. This however is not the case. I called to dispute the findings of the investigation, and was told the case was closed, and if I pursued this any further, my accounts at Key would be closed. Then on XXXX, I received a computer generated letter dated XXXX from Key Bank, stating that my loan draw period would expire in 274 days, on XXXX. This is not the correct end date. The actual end date is XXXX. This letter proves that Key does not have the correct information in their system about my loan.
I contacted Key again to tell them about the letter, and was assured that all the information in the letter was correct, the case would not be looked at any further and that they do not duplicate efforts or reopen closed investigations. I was then threatened with having my accounts closed again because I was a nuisance customer. I called several more times to get someone to acknowledge the error. I faxed in a copy of the letter. Finally I received a call back from the woman that initially investigated the case. Instead of acknowledging the problem, she told me that the letter did not originate from Key and was fake. She accused me of faking the letter myself, and told me that I was being referred to the fraud department and the security department and that my accounts were being closed as of that moment. I asked to speak to her supervisor, she refused, and then I was hung up on. I then called the Executive team again, who refused to speak to me. After 3 more calls and arguments, I finally spoke to someone who said they would look into the matter and get back to me. Unbelievably, the final conclusion arrived at by Key bank is that the letter dated XXXX that I received in the mail is altered. They have accused me of altering it from a letter that was sent out in XXXX, since they say they cant find the letter in their system. This is NOT true. I did not alter the letter. This is a real letter that I received in the mail from Key Bank, and Key Bank has the wrong information in their system about my loan. They absolutely refuse to acknowledge this and instead would rather accuse me, the customer, of fraud and threaten me with account closure rather than admit that there is a problem in their computer system. I am attaching the letter from the bank from XXXX, the letter from XXXX, and the front page of my loan documents. These are all genuine and UNALTERED. The information in each contradicts the others, PROVING conclusively that Key has an error in their computer system. They refuse to admit this and they refuse to fix it.

Company response to consumer: Closed with explanation