Consumer complaint received 2017-10-06
Company: KEYCORP
State: CT
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
I have been having an ongoing problem with processing and credit reporting on my line of credit since Key Bank took over from XXXX XXXX. When Key took over, the following month my credit score dropped drastically. Upon checking my credit report, I found that it stated that the credit limit on my loan was actually the outstanding balance, and therefore had me at 100 % debt to credit ratio on my account, which negatively impacts the credit score.
When you look at the summary of the XX/XX/XXXXcredit report from XXXX, you can clearly see that they are used {$330000.00} as the credit limit to figure the debt to credit ratio and not {$450000.00}. See attached. XXXX  stated that the info they provided was being supplied by Key. Key always stated that they were reporting the limit correctly as {$450000.00}.
In XX/XX/XXXX, my credit report finally did state that the credit limit was {$450000.00}. See attached. ( I do not know why it is in in a different format than the others ) This was the first credit report since Key took over that actually stated this. This dropped the debt to credit ratio to 63 %, from the previous 100 %, but the damage to my credit score had already been done. In the 12 months prior to Key, my credit score ranged from XXXX-XXXX. After Key took over, it dropped to XXXX, with NO missed or late payments, and with the only negative factor being the debt to credit ratio as being 100 %. I called XXXX to find out why the credit limit was reporting ( correctly ) as {$450000.00} that month and they told me that Key bank manually input the credit limit on XX/XX/XXXX.
I subsequently applied to refinance my loan with Key. I received a letter from Key bank stating that I could get a free copy of my credit report based on my application. See attached. I got this report in XX/XX/XXXX, and once again, the credit limit was reported wrong. It stated the credit limit as {$340000.00}, and used that number to calculate debt to credit, once again erroneously. I complained again to Key, and once again they stated they reported accurately and as {$450000.00}.
I called XXXX again to get an explanation. FINALLY I got the answer to what was going on. XXXX policy states that " If the credit limit is not reported, XXXX will use the high balance instead '' And this means every month. If the credit limit is not supplied in any given month, XXXX, and the other reporting agencies, will use the high balance as the credit limit. Upon further research, I determined that Key bank does not report the credit limit every month. That is the problem. It is not that they are reporting it incorrectly, they just are not reporting it AT ALL. And the credit reporting agencies will not use a previously reported credit limit, because the limits may change. XXXX XXXX had reported the credit limit EVERY month.
The worst consequence of this is that because Key did not report the limit in the first month that they took over, the credit bureaus took the high balance as the credit limit. And since they did not use the XXXX XXXX high balance, they had no reference point, so the outstanding balance and the high balance were the same, putting the debt to credit ratio at 100 %.
I reported this to Key. Branch personnel and loan servicing realized what the problem was and sympathized. The problem however was they were not allowed to do anything about it. My case, and my entire Key banking relationship is entirely controlled by XXXX XXXX in the Executive client relations team. He sent a message to my branch which was read to me that stated " I have gone over this with XXXX XXXX repeatedly, and what we are reporting is accurate. There will be no further reporting done on this matter. If XXXX XXXX continues to pursue this matter, we will be forced to take action against him. '' XXXX XXXX has interfered in my loan application and states that he can close my accounts and keep me from getting a loan if he decides to. My entire fate is up to him. He has told all employees of Key that they can have no contact with me and everything goes through him. When I speak with him, he states that his decision is final, I am wrong, and there is no one else that I can speak with. He has the final say and I can not complain about this or anything else to any superior of his. And this is just because I am complaining about a legitimate problem which Key has not resolved for nearly a year. He is not the CEO, but states that he has total power to do this and he even has the power to stop me from getting a loan. This is where the problem is at now. I need someone else besides XXXX XXXX to deal with this. I am not wrong about what is going on, and saying that everything is reporting correctly in the face of evidence to the contrary is not the answer.

Company response to consumer: Closed with explanation