Consumer complaint received 2025-03-24 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Payment process
Company: KEYCORP
State: WA

Complaint narrative:
My complaint is I have noticed our fixed rate conventional home equity loan through Key Bank was set up incorrectly and every single payment has been going to straight to interest since XX/XX/year> since we first set it up. This loan was a principal and interest loan and to be paid off in 30 years with the set payments of XXXX monthly. The very first payment was set to go straight to interest and aside from XXXX random months that I can see, every payment has gone straight to interest. There have been months I have paid XXXX, XXXX, ( more than the payment ) and again all of it goes to interest. The 6 months that had amounts go to principal were very random. I have made multiple attempts to call and ask about this and have been given absolutely no answers and no help. On XXXX XXXX I made another payment of XXXX for the home equity loan to the Key Bank branch local to me. I wrote the check out to Key Bank from my personal bank acct. and on the memo line wrote home equity loan with our address and it was deposited into my business account to Key Bank instead of being applied to our home equity loan. I emailed the branch after calling the mortgage line on XX/XX/XXXX and XX/XX/XXXX with no luck and she said she would get back to me. It is now XX/XX/XXXX and I received pre foreclosure paperwork from Key bank. I called the local branch today to ask if that payment could be moved and was told, " You know you can make that payment online right? ". I have also had issues with making the payment online and there is no way to do so for me. When I asked the branch why this payment has not been moved or can not, I was told that it has already been done and it's tough to fix. That answer does not make me happy. This is who I have trusted to get a home loan through.. and where I bank for my business. I can not have an XXXX check deposited into my business bank acct. that was made out to Key Bank. At that point I called the mortgage servicing division again and was told the request to transfer has been initiated and they would give me a XXXX adjustment for the late fee that they added on XX/XX/XXXX. I have asked for an update on our loan payments only going to interest since I had called last week on and was told that because payments have been late they get applied to interest first. The issue is that back in XX/XX/year> the first payment was also already set to go to interest. The statements show the payments due are only going to interest. There is no breakdown of how much/when and where goes to principal. When looking at my loan docs this is incorrect which means for over 2 years my payments have been being applied incorrectly and months where I have paid higher than the amount due to pay more down on principal has all just gone to interest as well. I believe if I can not get an answer I will need to hire an attorney for help. This has gone on far too long and this is directly affecting me and my stress. This has been the worst experience with any bank I have ever had.

Company response to consumer: Closed with non-monetary relief