Consumer complaint received 09/30/2017 about Checking or savings account (Checking account) with M&T BANK CORPORATION (MD).
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint: I am writing to report actions taken by M & T Bank that have had a devastating impact on my credit report. 

My only request of M & T has been that they remove and/or retract their negative entry from my credit report, as I believe it was made unfairly. 

I primarily bank with a different banking institution and issue payments to all creditors from my that checking account. I previously banked with M & T Bank and also have a HELOC with them for which I make a monthly payment. After switching to a new bank, I continued to use my M & T checking account as a means for transferring funds in order to make my HELOC payment ( first, a transfer from my primary checking account to my M & T checking account ; and then an internal transfer from my M & T checking account to my M & T HELOC account ). 

On XX/XX/XXXX, I called M & T to report that my checkbook had been stolen. The representative that I spoke with ( XXXX? ) asked if I wanted to close the account. I very specifically told her that I did NOT want to close the account because I transfer funds to the account monthly to make my HELOC payment. I explained that I dont actively use the account for writing checks and asked that they just prevent any checks from clearing the account. The representative assured me that everything was in order. But apparently this was not the case, because the checking account was locked down. And this was done without my knowledge or consent. 

On XX/XX/XXXX, I logged in and noticed that I had new internal TRANSFER UNSUCCESSFUL messages. When I reviewed my payment history, I could see the payments for XX/XX/XXXX and XX/XX/XXXX had not  processed. On XX/XX/XXXX, I called M & T and spoke with XXXX in the HELOC department. She explained the transfers had failed because the account had been locked down after I reported my checkbook was stolen. I received no external emails or voice messages from M & T about missed payments ( however, M & T does send me external messages when my estatement is available ). On XX/XX/XXXX, I made a payment for the full amount due. 

The lock down that was placed on my account allowed funds to transfer into my account, as usual. But it prevented the transfer of funds from my account including the internal transfer that I had in place to make my monthly HELOC payment. ( To put it another way, M & T prevented M & T from paying M & T! ). And as a result, the payments for XX/XX/XXXX and XX/XX/XXXX were late and I was reported late to the credit bureaus. 

On XX/XX/XXXX, I met with a manager in my local branch to discuss the matter. He advised me to call M & Ts general customer service number and submit a dispute. 

I called M & Ts customer service number and requested an in-person meeting with someone in management to discuss the matter, but was told I would first need to submit a dispute to their collections department. I consented to this, but asked that I be allowed to meet with someone in person to discuss the matter if it were decided that my request would be denied. 

One week later, I received a letter stating M & T had reviewed my dispute and it was determined that M & Ts reporting of my late payments were accurate and no change would be made. 

On XX/XX/XXXX, I called M & T customer service and asked to speak with a supervisor. I was connected to a supervisor ( XXXX ) and explained the situation. And, again, I asked to speak to someone in-person regarding the matter. During our conversation, her comments implied that her mind was already set. She questioned me on whether I had bothered to log in to my account and check to make sure the payments were being made ( admittedly, I did not because this is not an account I actively use and I had every reason to believe a reliable payment process was in place ). She implied ( at least twice ) that I should have known a hold on the account would affect transfers from the account. I corrected her each time and reminded her that I was never told a hold or a lock down would be placed on the account. I further explained that : 1. I made it very clear to the representative that I dont actively use the account, but needed to leave it open because thats how I make my HELOC payment ( and I explained my transfer setup ). 
2. I specifically asked that they just stop checks from clearing the account. Nothing more. 
3. At no time, did the representative tell me this would cause any problem with making my HELOC payment. 
4. In my opinion, if the representative KNEW I was using this account to pay my HELOC, then it was her responsibility to inform me if there would be any problems regarding this process. 

XXXX continued to seem resistant to my defending arguments, so I asked that the the phone recording be pulled and reviewed. I also asked if I was entitled to a copy of the recording and was told no. A few hours later, she called me to report that she had pulled and reviewed the recording. The result : Although I had told XXXX that I did not want the account closed because I use it to pay my HELOC, XXXX did tell me this would prevent all debits from the account, and I should have known this would include internal transfers. Therefore, M & T stands by its decision regarding their actions. 

I disagree with this assessment. In hindsight, I now recognize that a transfer is a debit. But I disagree with the assessment that I should have known, given the circumstances. Transfers and debits are usually considered separate types of transactions in personal banking. Theyre labeled differently in statements. They have separate sections in online banking for setting up automatic transfers and payments ( which are listed as debits ). And considering I made the representative well aware that I use the account for transfers, she failed in her responsibility to inform me that this would have any negative consequence on that process. 

My checking account should not have been locked down. I did not authorize that any action be taken other than not allowing checks to clear my account. And I believe my intent was very clear based on the phone conversation. 

The impact of this has cost me thousands of dollars. I was actively trying to refinance in order to consolidate debt. But, the drop in my score ( from XXXX to XXXX ) has been devastating financially. As a result, I was denied two loans that were pre-approved just weeks earlier. I have always made every reasonable effort to meet my financial obligations in good faith. A review of my checking account history for the last several months will reflect that Ive had the necessary funds to easily meet my obligations ( I am providing copies of my bank statements for your reference ). 

Once again, I respectfully request that M & T retract the negative entries on my credit report, in order to help restore my credit. And I thank you for any assistance you can offer regarding this matter.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation