Consumer complaint received 2022-03-01
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: KEYCORP (GA)

On XX/XX/XXXX, KeyBank Mortgage ( KB ) increased my monthly mortgage payment from {$4900.00} to {$5000.00} ( an increase of {$69.00} ) due to reserve amounts needed in Escrow. I have auto-draft set up to automatically pay my mortgage every month on the XXXX for the following month. I failed to adjust the auto-draft amount in time for the increased XX/XX/XXXX payment, and incurred a late fee on XX/XX/XXXX. I noticed this late fee on XX/XX/XXXX and immediately called Key Bank to correct the issue. I spent 2 hours with them over two phone calls. I submitted two additional payments ( totaling {$14000.00} ) on XX/XX/XXXX to overcorrect the issue, and KB gave me a once a year late fee reversal. I, and the KB reps I spoke to thought this issue was resolved. On XX/XX/XXXX i performed my due diligence and called KB again, twice, to confirm my account was in good standing and that my adjustment to the auto-draft was correct. I was assured that my account was in good standing. On XX/XX/XXXX, my account incurred yet another late fee, and every month since Ive incurred late fees. This is despite sending a payment in the full amount of {$5000.00} every month. Since XX/XX/XXXX, Ive called Key Bank over a dozen times, collectively totaling 10+ hours on the phone. 

The most productive call I had was with a rep named XXXX on XX/XX/XXXX, where we uncovered what happened. My payments were incorrectly applied to various back end accounts by the back office and I had funds sitting in an unapplied balance account. XXXX submitted a request to adjust where my payments since XX/XX/XXXX were allocated to the back office. I was asked to be patience and the issue would be resolved. On XX/XX/XXXX I was hit with another late fee yet again. 

On XX/XX/XXXX I called and spent 3 hours on the phone, and escalated the conversation to a manager. I was told that the back office can not reallocate funds for past activity beyond 60 days. I clearly stated that this issue was caused by KB back offices mistake in the first place. The call ended with frustration and no resolution. The information I was told conflicted with what I was previously told by other reps, as well as what the manager had stated before on the same call. 

On XX/XX/XXXX I noticed yet another relate fee and noticed that a prior payment was partially sent to unapplied balance again. I called and made request to back office to apply the unapplied funds of {$69.00} to the escrow account. I simply asked again, what do I need to do to avoid late fees every month. The rep couldnt give me a clear answer and said shed investigate and call me back on Monday XX/XX/XXXX. I did not receive this call back. 

On XX/XX/XXXX morning I called again and spoke to XXXX. XXXX said she sees where the issue came from and will need sometime to investigate and will call me back by end of day. She also stated that the request to moved unapplied funds balance to escrow is still pending since XX/XX/XXXX ( 10 days later ), but assured me that it would be completed tomorrow, XX/XX/XXXX. 

On XX/XX/XXXX at noon I learned that my credit score had been affected. My XXXX score dropped XXXX points from XXXX to XXXX due to KeyBank falsely reporting that I havent paid my mortgage on time. This has directly impacted my ability to secure a competitive auto loan rate, which Im currently pursuing. I immediately called KB and spoke to a rep to request a dispute to whats been reported to the credit bureaus. She submitted the request. I also asked her the same question Ive asked so many times before : what do I need to do to avoid late fees. This rep gave a clearer answer- submit another payment. While I was still on the call with this rep, I sent another payment totaling my regular payment amount. This means that for the month of XXXX, I have sent key bank a double payment of {$5000.00}. I asked the rep to confirm payment received, to which her response was that it would take 2 business days to post and confirm. 

On XX/XX/XXXX afternoon, XXXX called me back as promised. The first time I actually receive a call back as promised. Unfortunately, XXXX did not have any updates for me, as she needed more time to investigate and resolve. 

Today is XX/XX/XXXX. I have accumulated a total of {$1300.00} in late fees to date. I have made numerous attempts to resolve this matter with XXXX over the past 7 month. I no longer trust KBs ability to effectively service my loan nor accurately allocate my payments, namely in relation to the escrow, unapplied balance, and late fee back end accounts. Finally, I am now unable to secure a favorable car loan rate due to the erroneous reporting to credit bureaus. In short, an error made by Key Bank 7 months ago is not only costing me time, stress and overpayments, but additional damages resulting from a significant drop in my credit score.