Consumer complaint received 2018-10-04
Company: KEYCORP
State: NY
Product: Money transfer, virtual currency, or money service
Sub-product: Foreign currency exchange
Issue: Incorrect exchange rate

Complaint:
On XX/XX/2018 I went to the KeyBank branch at XXXX XXXX XXXX, NY where I have accounts. I asked a teller if they exchanged US dollars for Euros. She told me that the exchange rate was the market exchange rate and that there was a {$10.00} flat fee regardless of the amount purchased. Based on that information, on XX/XX/2018 I went back to the same branch and asked teller XXXX XXXX the same question. She told me the same thing : it was at market rate for a {$10.00} fee. She told me that the Euros would be there in a few business days. I gave her {$1000.00} dollars to exchange for Euros. She had me sign a piece of paper showing the {$10.00} fee and the exchange rate. Within an hour of leaving KeyBank, I looked on the web and saw that the KeyBank exchange rate was not the market rate ( using the 3 standard exchange rates the US IRS uses ). It was vastly different and equaled a minimum of a {$55.00} shortfall for the {$1000.00}, between from the market rate and the rate KeyBank gave me. I immediately called XXXX and she said she would try to cancel the transaction. She called me back and told me she talked to the branch manager, XXXX XXXX, and XXXX said it was too late to cancel it. I asked to talk to XXXX. XXXX told me it was too late to cancel it but when the Euros came in she would call me and would offer me a resolution. The next day, XX/XX/2018, she called me and she offered to purchase the Euros back at an even worse rate ; that is, I would have lost even more money selling it back at the rate XXXX offered me. I told XXXX that the reason I had wanted to cancel the transaction was not because I changed my mind and did not want the Euros, because I was going to be traveling to Europe, and I did take issue with the {$10.00} fee because I agreed to that, but it was that I wanted the exchange rate I was told I was going to get or to be made whole for the {$1000.00}. XXXX acknowledged that XXXX had told her that she told me it was the market rate. XXXX then told me that that did not matter, what mattered was that I signed the paper that had the rate on it. I told her that I signed it based on the understanding that it was the market rate and it was not. On XX/XX/2018 I called the branch and spoke with XXXX XXXX, the KeyBank Relationship Manager at the branch. XXXX told me that he would see what he could do to get me a refund because what occurred was wrong. He told me he always advises customers to not exchange money through XXXX because it is a bad deal and that he refers customers to XXXX. He told me that the tellers should not have told me it was the market rate because it is always far from it. XXXX called me back on the afternoon of XX/XX/XXXX and told me he was still working on it and that he would get back to me. A week later I had not heard back from him so I stopped in the branch. XXXX said the he could do nothing for me. He said he reached out to KeyBanks operations department but XXXX XXXX, the Branch Manager told him he could not give me a credit for the {$55.00}. He said if it was up to him he would. He said he would follow up and coach the employees because they should not be telling people it is the market rate because it is always much lower.

Company response to consumer: Closed with explanation