Consumer complaint received 2023-02-17
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: KEYCORP (NY)

On XX/XX/XXXX I attempted to withdraw money from my checking account, after not being able to, I opened my KeyBank app and found that my account was closed. I called KeyBank customer service and was informed my account was closed for a " regulatory issue '' and that the funds from my account would be coming in a check mailed to me; said check would be at my house by the 2nd week of XX/XX/XXXX. The representative also told me that I was notified of the issues with my account via mail and email in the months of XXXX and XXXX. I had not received any such notices via mail or email. 

On XX/XX/XXXX I visited my local key bank ( XXXX XXXX XXXX NY ). I spoke to XXXX, a representative there. She could not give me any answers, but told me the check with my.money had been mailed and would be at my house within 7-10 business days. She told me she would reach out to the fraud department to figure out what happened to my account, and would call me back with answers. She also said that I was notified at some point from key bank, but not what I was notified of, or when the letter ( s ) were sent.

Later that day, a notice came in the mail informing me that my account had been reviewed and " activity/information has been identified that is not in accordance with Keys Depost Account Agreement and Funds Availabilty Policy currently in effect. As a result, KeyBank intends to discontinue the business relationship ''. The letter also stated that " The remaining balance, if any, will be sent to the account statement address in the form of an official Bank Check ''. This notice was dated XX/XX/XXXX, and stated that my account could be closed no sooner than 5 days after the date of the letter. My account was closed on XX/XX/XXXX, exactly 5 days after the date of the letter and the account was closed 5 days before I had received the letter. The letter included a phone number for the KeyBank fraud department, so I called the number.

The representative from the fraud department informed me that the " regulatory issue '' my account was closed for was for depositing third party checks from people who are not authorized users on my account. On XX/XX/XXXX I deposited a check worth just over {$1000.00} written to my girlfriends father via KeyBank mobile deposit. He had signed the back of the check, written " For KeyBank mobile deposit only '' as well as my account number on the back of the check. On XX/XX/XXXX, I deposited a check worth just over {$11000.00} written to my girlfriend and her father at KeyBank. I walked into the bank with my girlfriend, approached a teller and asked to make sure that there would be no issues depositing the check after my credit union had told me they do not cash third party checks. The teller told me there was no issue, they accepted third party checks, and the amount did not matter. My girlfriend and her father both endorsed the back of the check and it was deposited. The checks were not held for a long period of time, nor were there any issues that arose from them. 

On XX/XX/XXXX, XXXX called me back and told me that my account had been closed due to the third party checks. She explained that third party checks are against KeyBank policy and are not allowed. I told her about the checks i had deposited, and she told me that it wasnt allowed and there was no reason a teller shouldve let me cash them.She explained most of what the fraud agent and letter explained to me, and told me that she wasn't sure when my check would be in. I also visited another keybank branch ( XXXX XXXX XXXX XXXX NY ) to speak to a representative to ensure that the incident of my account closing would not effect my credit. He ensured me that the account closing would not effect my credit, or my ability to open or maintain accounts at other banks that are not keybank. He also mentioned that he had never heard of the policy against third party checks, and that there are regulars at his bank that deposit third party checks often. 

On XX/XX/XXXX, I reached out to the XXXX XXXX key bank to speak to someone about why my check had not been delivered yet. I spoke to XXXX again and she told me it was odd that my check hadn't been delivered, but that she would call the internal fraud department to see what's going on and give me a call back. After we hung up, I called the KeyBank customer service line and spoke to XXXX. After explaining my situation she informed me that I would have to call the KeyBank fraud department, as they could not see the details of my case. She gave me the phone number, I hung up, and immediately called the fraud department. 
After being connected with an agent from the fraud department and explaining my dilemma, they told me that they did not control when checks came, so I would have to speak to customer service. I explained that I had just spoken to customer service, and that they sent me to fraud. The fraud agent then reached our to a customer service rep and connected me directly to her. She informed me that she could not figure out why my check had not come, and said she would call Me back within 1-2 business days with an answer. It has been 1 business day and I have not received a call back from her. 

On XX/XX/XXXX ( the day of writing this ) I received a call back from XXXX at KeyBank. She informed me that the Fraud department had not ever written a check to me with the funds remaining in my account, and that she was unsure when they would or why they hadn't. She gave me the fraud departments phone number ( the same I had called previously ), as well as my case number and told me to call that if I had any further questions. I hung up with her and called the fraud department. 
After reaching the fraud department, I spoke with a representative named XXXX. After explaining my situation to her, and asking where my check was, she placed me on a brief hold. After coming back, XXXX informed me that I would have to reach out to my local key bank and speak to a branch manager to get more information about my situation. I explained I had just spoken to a rep from my local key bank, and they had sent me to her. She asked for who I had spoke to and the address of the key bank. After being placed on another hold, XXXX came back and had XXXX on the line with her as well. XXXX hung up and I spoke to XXXX, who informed me that she had no idea when or if my check would be written, or why my check had not yet been written. She told me I would have to come in tomorrow XX/XX/XXXX and speak to the branch manager in order to find out more information. 
Earlier this evening ( XX/XX/XXXX ) I called the key bank customer service line and spoke to a representative. I gave my first and last name and asked if KeyBank would allow me to deposit third party checks into my account. She informed me that she believed they would, and did not see any issue with it. After I asked weather or not the dollar amount made a difference, she said she did not believe it would. 

As of this moment. I am planning on meeting with the branch manager tomorrow as soon as the bank opens to speak about the situation at hand.