Consumer complaint received 2023-04-26
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — 
Company: KEYCORP (NC)

I have an issue that I have been trying to resolve since XXXX of XXXX. The issue has been escalated to KeyBank 's executive complaints department and I have yet to hear back from anyone at KeyBank. 

Key Bank has been charging us the wrong interest rate for over 11 years for two lines of credit on a home that we sold in XXXX by altering the original home equity lines of credit from XXXX Here is the issue : In XXXX we contacted our local Key Bank branch manager from the XXXX XXXX location in XXXX Ohio to speak to him concerning the fact that we needed to move closer to my job and that we had two home equity lines of credit tied to our home. We wanted to know if we could do it since from the time of the XXXX collapse, we had lost value and what we could sell for wouldnt cover the entire amount owed. 

He advised us that because of our excellent credit, he would accept a short sale and the remaining amounts from the lines of credit could be converted to two personal loans. One account would be a 10-year note with a fixed rate of 3.14 % and the other would be a 20-year note with a fixed rate of 2.14 %. He said the best thing about doing it this way was that as time went on our payment would be less due to us paying the balance down. We decided that instead of walking away from our obligation as so many others had due to the financial crisis, we would continue to pay the personal notes. 

I noticed in XXXX of XXXX that our payments were going up instead of down. I spoke to XXXX on XX/XX/XXXX and was told that Key Bank has been charging us a variable rate of 5-6 % over the last 11 years pursuant to our original line of credit loans that were tied to the home that we had sold in XXXX. 

I was also told that someone had gone into the original lines of credit from XXXX and unchecked the collateral box so that is how the payments never stopped on the original loans. There is no signed documentation by us that we accepted for Key Bank to do this in XXXX when we sold the house. The original lines of credit should have been closed and new paperwork signed in XXXX. We signed the two personal line loans at the branch on XXXX XXXX in XXXX, Ohio in XXXX. 

To date this is what I have done to try and get this corrected with KeyBank : On XX/XX/XXXX called the loan department someone was supposed to call me back, never did On XX/XX/XXXX spoke to XXXX, she was going to research and get back to me, never did XX/XX/XXXX sent a certified return receipt requested letter to Key Bank Loan Client Services Loan Disputes, never heard back XX/XX/XXXX called and spoke to XXXX in Loan disputes and he confirmed receipt of the letter. He stated that someone had been assigned the case and it was still being reviewed. I never heard from anyone. 

XX/XX/XXXX called and spoke to XXXX and he transferred me to XXXX in Loss Mitigation. She was going to look into the issue and call me back. 

XX/XX/XXXX called XXXX and she was still working on it. She submitted it to the executive review team, and she said someone would follow up with me by XXXX. 

XX/XX/XXXX I called again to reach someone in your executive review team and spoke to XXXX. She said that she would send it up to the mortgage department for review and that she would call me back by XX/XX/XXXX, I have never heard back from her to date. 

I left messages for XXXX on XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX I sent an email to, XXXX XXXX, CEO of KeyBank explaining the situation and that I had not heard back from XXXX who reports directly to him. I sent emails on XX/XX/XXXX, XX/XX/XXXX and again today asking for his assistance. I have never gotten a response. 

KeyBank has been over-charging us for the past 11 years for both loans and we are owed the difference in interest for one of the loans over the last 11 years and payments and interest for the loan that should have paid off in XXXX. 

In the meantime, our credit is being affected by this error on KeyBanks part and I want it resolved as soon as possible. Key Bank has altered our two signed original lines of credit loans from XXXX to continue to collect payments on a home that was sold in XXXX.