Consumer complaint received 2015-05-20
Company: M&T BANK CORPORATION
State: NY
Product: Bank account or service
Sub-product: Savings account
Issue: Account opening, closing, or management

Complaint:
I was essentially extorted by M & T bank into obtaining a mortgage through them. Due to a report filed with XXXX by M & T Bank in XX/XX/XXXX, I was banned from opening a First Time Home Club savings account with any bank other M & T bank. The charge that was reported to XXXX was grossly inflated due to what I feel were inappropriate NSF charges. Even though I did n't think the report was fair, I did pay the amount owed to M & T, in full, less than one year after it was report to XXXX. Around XXXX XXXX and XXXX XXXX, I attempted to open a First Time Home Club account with XXXX & XXXX XXXX XXXX XXXX, but both were declined due to M & T 's XX/XX/XXXX XXXX report. After being declined by other banks, my housing counselor advised me to speak with M & T to see if they could withdraw the XXXX report. I contacted M & T at a branch to inquire about them withdrawing the XXXX report, but was informed that they could n't do that. However, they told me, I could open the First Time Home Club account with them. It seems preposterous that a company can report someone for a delinquent account ( which I believe was not legitimately delinquent ) & then force that same person to use only that bank. It seems to me that the system is designed ( at least in this instance ) to ensure that a consumer has no choice but to select a certain bank. To make matters worse, after successfully completing the First Time Home Club program and receiving the mortgage, and without informing me, M & T switched our First Time Home Club account to a different type of account that charges a monthly fee of {$7.00}. I believe it is the practice of M & T to do this to others in the First Time Home Club program. The account was charged the {$7.00} fee each month until the balance went negative, then it was written off by M & T -- all without ever disclosing the fees or sending me a statement. Upon completing the First Time Home Club program, I told M & T of our new address ( as was required in order to take funds from that account ) but M & T never updated the address for the account. Interestingly, they did have the correct address for our mortgage account. When I inquired about this with M & T they told me it was my fault for not changing the address and that I can not obtain the funds I had remaining in my account before the fees were charged and the account was written off ( they refused to confirm whether this account was also report to XXXX, but implied it was not ). They also provided me with several old statements and told me a fee was only charged XXXX times, but upon reviewing the statements I discovered at least XXXX as many fees as they claimed. At best, switching First Time Home Club accounts to fee bearing accounts without disclosing such a change is deceptive business practice. It is also not plausible that they did not have my current address because they acknowledged having it for the mortgage which was obtained as a result of that particular savings account.

Company response to consumer: Closed with monetary relief