Consumer complaint received 2025-05-02 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: KEYCORP
State: OR

Complaint narrative:
I am filing this complaint due to KeyBanks gross mishandling of multiple fraud disputes I initiated in XX/XX/XXXX related to unauthorized transactions that occurred during XXXX and XX/XX/XXXX. Their repeated negligence, failure to communicate, and inconsistent decisions have not only left me financially devastated currently severely overdrafted but also at risk of account closure. 

On XX/XX/XXXX, I filed dispute # XXXX via KeyBanks chat support. I provided a detailed list of fraudulent transactions totaling {$1100.00}. However, the agent, XXXX, miscalculated the amount at {$1100.00}. I immediately flagged the discrepancy, and she responded, We will double check why you only receive {$1100.00} and will update you tomorrow. No update was ever provided, and the error was never corrected. 

As this was a fraud claim, my debit card was canceled and a replacement issued. Despite confirming my correct Oregon address ( zip code XXXX ) with the agent in chat, the replacement card was illegally sent to Florida, an address not on file. This resulted in serious delays and exposed significant flaws in KeyBank 's security and address verification protocols. When I visited a branch in person to follow up, I also discovered that dispute documents had supposedly been mailed, but they could not tell me where, which explains why I never received any information, status updates, or document requests. Clearly, this contributed to an improperly investigated claim. 

In an attempt to resolve the situation, branch staff assisted me in filing a second dispute, # XXXX, on XX/XX/XXXX, to fix what was done incorrectly the first time. However, on XX/XX/XXXX, without warning, KeyBank reversed the provisional credits previously issued. I was not informed by phone, email, or physical mail. I only discovered this reversal on XX/XX/XXXX, and immediately followed up via chat on XX/XX/XXXX. 

In that conversation, agent XXXX asked if I had received any mail regarding the denial. I reiterated that I had never received any mail at all, likely due to their prior mailing errors. I then requested that all denied transactions be reopened immediately, overdraft fees reversed, and a proper investigation conducted one in which I could finally participate and submit documentation.

Instead of acknowledging KeyBanks failures, XXXX gave a condescending and irrelevant excuse, stating that my claim was denied because " online banking was used between the times the transactions were made and were not reported at that time. '' This is both misleading and unacceptable. 

I want to make this clear : Using online banking is not evidence of awareness of fraud. Customers log in for various reasons to check a balance, pay a bill, or transfer funds and may not notice unfamiliar transactions without actively reviewing a statement.

All disputed transactions were reported together, and KeyBank admitted some were fraudulent yet denied others from the exact same time period without giving me a chance to address the reason or provide input. That inconsistency undermines any argument they have that the denials were justified. 

These transactions occurred during the holiday season when I was recovering from XXXX  XXXX, grieving the death of a family member, and not able, as a XXXX person for whom XXXX and grief recovery is much harder than an able-bodied person, to be constantly actively monitoring my account. This is a reasonable and human explanation for any delay in reporting, especially since I filed the dispute immediately upon noticing the charges. 

I stressed to XXXX that just because a customer logs into online banking between fraudulent charges does not mean they are aware of the fraud. Simply checking a balance or using bill pay does not indicate the customer has seen all transactions, especially when dealing with medical recovery and emotional distress. Moreover, KeyBank themselves deemed some transactions fraudulent while denying others that occurred in the same window, reported at the same time. This is completely inconsistent and unjustified. 

XXXX then said they put in a request to reopen the claims and that I would be notified by mail again, despite my clear and repeated reports that KeyBank 's mailing system failed to reach me in the past. When I asked if I could email documentation instead, I was told no. When I asked what documentation might help, I was told " anything you believe will help, a deliberately vague and unhelpful answer. This makes no sensehow is a customer supposed to provide helpful information when the bank offers no guidance on what would be relevant? Their process is opaque and set up to discourage successful dispute resolution. 
I am now left with a severely negative balance, facing potential account closure and lasting financial harm, entirely because of KeyBanks systemic failures : Mailing a debit card to an address in another state Failing to properly calculate my disputed amount Refusing to provide status updates or allow customer participation Reversing provisional credits without notice Refusing to reopen claims without arbitrary approval Denying claims based on irrational assumptions, like online activity implying awareness of fraud Why XXXX complaining : KeyBank failed to correctly calculate or investigate my initial dispute total. 

They mailed my replacement debit card to the wrong state ( Florida ) despite confirming my Oregon address. 

They mishandled communications and sent all dispute-related correspondence to who-knows-where - because I never received any - resulting in me never receiving vital information. In the year of XXXX they claim emails or online correspondence can not be utilized to communicate crucial dispute information, which I find to be another cop out on behalf of KeyBank to set clients up for failure for Key 's own gain. 

They reversed provisional credit without any notice and without offering a fair opportunity for me to respond or submit evidence. 

They approved some transactions as fraud and denied others from the same period, with no justification provided. 

They denied my claim based on irrelevant reasoning ( online banking was accessed ) and without allowing me to address it. 

They are now requiring me to " request '' for a claim to be reopened, and refusing to allow that communication to occur via email despite their mailing issues. 

Their agents provide no guidance or transparency, leaving me unable to reasonably respond or support my claim. Despite framing the re-opening of the disputes as a " request '' that can be approved or denied, they provide no insight on the criteria for approval, what to submit to gain approval, or any other vital details to allow a client to have their claims re-addressed. 

I demand that KeyBank immediately reopen all previously denied transactions from this dispute, reverse all overdraft fees, and allow me a fair chance to submit evidence and fully participate in the investigation. 

If this is not resolved promptly, I am fully prepared to explore additional legal remedies, including filing an arbitration demand or pursuing other avenues for relief.

Company response to consumer: Closed with explanation