Consumer complaint received 2024-04-01
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: KEYCORP (CO)

On XX/XX/2024, I initiated a third-party check deposit using the KeyBank mobile deposit feature on my cell phone. This check, signed over to me with clear instructions and authorization as the Power of Attorney for the individual involved, was intended as a repayment for a previous transaction. Despite following all protocols outlined by KeyBank, including the endorsement and mobile deposit process, my account was subjected to an unexpected hold, significantly delaying the availability of funds. 

After submitting the deposit, the initial notification indicated that the funds would be available within one business day. However, shortly after, the estimated time for fund availability was extended to three business days, causing concern and prompting me to contact customer support for clarification. Despite my inquiries and expressions of dissatisfaction with the extended hold, KeyBank was unable to expedite the process or provide a satisfactory explanation. 

On XX/XX/2024, I visited the KeyBank XXXX XXXX XXXX in XXXX, CO, where I presented a signed and notarized copy of the Power of Attorney, along with original check evidence and proof of payment from my account to the check issuer. Despite providing all necessary documentation, the issue persisted, with promises of resolution continuously delayed. 

Simultaneously, on XX/XX/2024, KeyBank restricted my account visibility without valid cause or notification, denying online or mobile access and necessitating physical visits to the branch for updates. This action hindered my ability to manage personal finances and access vital government unemployment benefits essential for my livelihood. 

On XX/XX/2024, I revisited the KeyBank XXXX XXXX XXXX with a list of upcoming payments that I needed to be processed, as instructed by the fraud department. The banker made notes on my account regarding these necessary payments. 

On XX/XX/2024, I submitted a sworn statement affidavit to support my case. I had the affidavit notarized at the KeyBank XXXX XXXX XXXX. In the affidavit, I attested that all the proof I provided was accurate and that the check deposit was legitimate. 

On XX/XX/2024, I was initially informed by the fraud department that my account had been closed, but later received confirmation during the same call that it was reopened while discussions continued between the branch and investigators. Due to this lack of fraud, the branch advocated for me to keep my account open. During this call, I was suggested to visit the branch to open a different account. However, on XX/XX/2024, during a visit to the branch, I was informed otherwise, with the banker telling me that he was instructed to exit the relationship, further compounding the situation. 

Throughout this ordeal, I have incurred significant expenses, including mounting late fees, disruption of essential services such as car insurance, internet, and cell phone payments, as well as negative impacts on my credit due to non-payment. My car insurance policy was canceled by the provider due to the disruption to my account and inability to make timely payments, resulting in the loss of valuable discounts and a higher premium that I will be subjected to indefinitely. Similarly, the disruption to my XXXX account has forced me to switch to a more expensive plan, with no option to return to my previous, more affordable service. These unplanned and unnecessary expenditures, both in the short-term and long-term, have placed an undue financial burden on me. 

Additionally, I have been forced to rely on costly alternatives such as ridesharing services and grocery/pet necessities delivery fees, further straining my financial situation. 

Furthermore, it has come to my attention that the funds from the original check deposit, intended for repayment, were unlawfully withdrawn by KeyBank and have yet to be returned to XXXX XXXX or the XXXX XXXX XXXX, compounding the injustices and necessitating further legal recourse. 

I have received multiple notices via USPS from KeyBank, each indicating that my funds would be available soon, adding to the confusion and frustration caused by their inconsistent communication.