Consumer complaint received 2017-05-25
Company: KEYCORP
State: NY
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
I n   XXXX   XXXX   2017 I received a bill from Key Bank stating there was a payment due for   XXXX   XXXX   2017,   however I had made the  XX/XX/XXXX  payment on    XXXX   XXXX   2017.  I spoke with a branch manager from the  XXXX  Ny location  XXXX   XXXX  because my daughter who is a co-signer on the loan was told she could not make two monthly payments to pay the loan ahead. In speaking with  XXXX   XXXX  I requested a copy of all payments made and advised him the installment loan was taken out through  XXXX   XXXX   XXXX  the term being 72 months at {$310.00} per month. Key bank acquired this loan upon purchasing  XXXX   XXXX   XXXX . As you can see from the attached payment history The   XX/XX/XXXX   XX/XX/XXXX  and  XX/XX/XXXX   payments were applied correctly these were done through  XXXX   XXXX . Starting with the   XX/XX/XXXX   payment made on     XXXX   XXXX   2017     this is where the problems started. Upon speaking with  XXXX   XXXX  he informed me  Key  bank does not let you make monthly payments in advance. I advised him per the contract I signed for the the installment loan through  XXXX   XXXX  that is not the case. He in turn told me he would have to look at the contract and call me back which he did. In calling me back I was told Key bank has to honor the terms of the contract and I could make advance monthly payments. In     XXXX  2017      I received a bill from Key bank stating there was a payment due    XXXX   XXXX    2017. However I have a copy of the repayment history showing the loan is paid through   XXXX   XXXX   2017 wi th   XX/XX/XXXX    payment being made on    XXXX   XXXX   2017.  ON    XXXX   XXXX   2017    apprx  XXXX  I called Key Bank and spoke with  XXXX  and went through my entire repayment history for each month and the date the payment was made.  XXXX  assured me there was no   XX/XX/XXXX   payment due and she had to submit it to her " back '' office and would be calling me back on Monday    XXXX   XXXX   2017    at  XXXX  to let me know what the " back " office said. I never received that call. So today     XXXX   XXXX   2017     approx  XXXX  I called Key Bank again and spoke with  XXXX   XXXX  who informed me my loan is past due and gave me the mini miranda warning and call recording statement as all of their calls are recorded. Which is very offensive to me as I never make late payments. I informed him I spoke with  XXXX  who never called me back and assured me there was no  XX/XX/XXXX  payment duewhich contradicted what he was telling me. I then again went through each payment date for each Month through    XXXX   XXXX   2017  payment. He placed me on hold and told me  XXXX  was not avaliable and would call me back. I informed him I wanted to speak with a supervisor to resolve this once and for all. I was then tranfered to  XXXX   XXXX  a supervisor who informed me they were goint to reapply my  XX/XX/XXXX  payment to cover the  XX/XX/XXXX  Payment. I informed her of all payment dates for each month thru     XXXX   XXXX   2017     and advised her I wanted them applied correctly through     XXXX   XXXX   2017    . She informed me I would have to call everytime I make a payment so they can adjust it or it will be applied to the principal balance as Key Bank does not allow for early payments. I let her know the installment contract I signed was for   XXXX   XXXX   for 72 months and all of my payment were being made early and they had to honor the contract as I did not sign a new contract with   XXXX   XXXX  . She just kept repeating I had to call them. I asked for someone who could correct the issue as this is on   XXXX   XXXX   not me. I was then transfered to  XXXX  who told me that all calls are recorded and she had been made aware of the issue and I would have to call each time then contradicted herself saying if I made a payment at the bank it could be made for the folowing month, but she could not reapply the   XX/XX/XXXX   payment because the billing statement has not been issued yet and without the billing statement from the  XXXX  of ea mo a payment can not be applied to that month. I should not have to call the bank everytime I make a payment to ensure it is applied for the correct month as my contract states 72 monthly payments. As long as they are being made on or before the due date I should never have to hear from or call the bank.  Key  Banks policies that a borrower can not make an early payment are absurd for honest people trying to do the right thing and uphold their obligations. I 'm sure they have no idea what  Key  Bank is doing to try to get more money or make you default on a loan. Which is what they are doing here my daughter has paid early because she knew she would be off work for a couple of months and now they are trying to say there are payments due while she has little income and the payments have clearly all been made per the signed contract through  XXXX   XXXX   XXXX .

Company response to consumer: Closed with explanation