Consumer complaint received 2018-06-15
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — 
Company: KEYCORP (NY)

On XX/XX/XXXX I contacted Key Bank about an issue for the 3rd time. I spoke with a rep who failed to understand the problem and whom I had to push to refer me to a supervisor. I then spoke with supervisor XXXX, employee number XXXX. Including hold time I was on the phone for 1 hr 14 min. During the prior 2 calls I was also on the phone, including hold times, for close to or slightly over an hour. 
Ref # XXXX Background : When we opened a HELOC with XXXX  XXXX ( the branch, and corresponding accounts, was later purchased by Key Bank ) and in order to obtain a more favorable rate, opened a checking account from which monthly payments would be auto-deducted. 
I set up a monthly auto transfer from our XXXX checking account into that Key Bank checking account number XXXX so the money would be there in time for the auto-withdrawal each month. 
On XX/XX/XXXX we closed on the sale of the house with which the HELOC was affiliated. On that day both the primary mortgage and the HELOC were paid off as part of the closing. 
The HELOCs normal withdrawal date was the XXXX of each month and therefore the same day as the closing BUT that days payment was included in the closing calculations. 
I forgot to cancel the auto transfer from our XXXX  account to the Key Bank account until after the closing so I withdrew ( transferred back from Key Bank to XXXX ) the total balance from the Key Bank account later in the day on XX/XX/XXXX. 
As I suspected might happen, Key Bank didnt cancel the auto withdrawal, and so the Key Bank checking account went negative, and incurred fees/penalties, for a total negative balance of {$1700.00}. I ( wrongly ) assumed the matter would be recognized and rectified by Key Bank within a short period of time. 
I started calling Key Bank about 2 weeks after the closing and after receiving a late notice to point out the issue. I got an over-seas customer service center the first time, asked for a supervisor, and that supervisor stated that Key Banks account services does not directly communicate with their mortgage division, but that he would put in a request to have the issue resolved. 
When I called back the next time a reached the mortgage division and had a similar conversation, ending with Ill put in a request and hope for the best. 
When I called on XX/XX/XXXX, the initial rep was condescending and rude, directly implying that I must be wrong and that I owed Key Bank for the XX/XX/XXXX payment plus all fees. I requested a supervisor and when speaking with XXXX, she had the same attitude toward me as the rep, implying I was definitely wrong, but finally humored me and looked up the information to confirm. When she came back on the phone her tone was more conciliatory, and she confirmed that I was correct, and that Key Bank had made the error. She said she would see what she could do about the late fees. 
I politely but directly told her how offended I was by her prior tone, attitude, assumptions, and what she had said to me. I further stated that after all that, for her to then say Ill see what I can do about the late fees was infuriatingexplaining are you kidding me? At this point you should be profusely apologizing and stating that you will reverse all fees and correct the core issue. 
XXXX checked into the matter further and came back on the phone to say a refund check had been mailed ( we never received it, turns out it was mailed to the house we sold ) and since I didnt receive it, she would stop payment on the check, request a replacement, and then I could deposit it into the Key Bank checking account, thereby bringing the balance back to XXXX. I replied that Id prefer the matter be handled internally with Key Bank handling the transfer of money rather than issuing a replacement check and creating more work for me to correct their error. She agreed that was a great idea and that they would take care of it that wayno problem. 
I wanted to speak with her manager to confirm everything ( especially in light of all the time I spent on the phone for all 3 calls and the poor treatment and customer service I had received ), but XXXX said her manager was in a meeting and after a period of time, said she couldnt keep me on hold to wait for the manager any longer and that she would make sure the manager called me back that night before the end of her shift. No call ever came. XX/XX/XXXX was a Thursday and no one called me back that day, or any day since. I asked XXXX if our call was being recorded and she said that yes, it was. I would like that call to be reviewed. 
The XX/XX/XXXX statement still shows a negative balance and yesterday, I received a letter from Key Bank stating they will send a refund check AFTER RECEIVING A NOTARIZED INDEMNITY AGREEMENT BACK FROM ME!