Consumer complaint received 2026-04-28 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Fees charged
Company: KEYCORP
State: IN

Complaint narrative:
On XX/XX/year>, I called the customer service line of Keybank to request removal of a past due payment fee accessed to the account. The customer service representative that I spoke to told me that there was no problem, since I have never been late during the mortgage period, they could wave the late fee. When I received the XXXX statement, I see that I still have an additional amount to the regular mortgage payment and on XX/XX/year>, I called the customer service line to inquire about it. The representative told me that they could not give me information on the account because I was not the person named in the account. I explained that I had called the previous month to request a late fee waiver and that the person helped me fine. I said that all I wanted to know is if the amount was correct, understand why it was higher. I thought that they did not remove the previous fee. I was ready to send the payment, but I wanted to send the right amount. The customer service representative refused to provide me with the information saying that he could not provide me with that information because I was not the account holder. After the phone call, I decided to schedule the payment in the amount of {$1900.00} ( regular payment ) instead of {$2000.00} posted on that statement. Keybank received the payment on the XXXX of XX/XX/year>. Around the XXXX of XXXX, the bank started sending text messages to my husband stating that the payment was late. I told my husband that I had scheduled the payment to process on the XXXX of XXXX and that they should have received the payment by the XXXX of the month. On XX/XX/year>, I called the bank with my husband on the line to inquire about why they were stating that they had not received the payment. They continue to say they had not received the payment, but then they corrected themselves by stating that they received the payment, but it was incomplete. Therefore, they could not apply it to the account. After they explained that the new payment schedule had changed due to increase in the escrow account, I asked what the amount was and proceeded to send the payment. The bank had said that they would apply a late fee if I did not send the additional money. I requested the bank remove the fee due to all the circumstances I explained, and they told me to send the additional money, and they would see about the fee later on. I sent the additional monies to the bank on XX/XX/year>. The XXXX statement came with a past due fee of {$77.00}. On XXXX XX/XX/year> ( today ) I called the bank to request the fee remove and they denied the request. The amount sent to the bank, {$1900.00} on the XXXX of XXXX, was sufficient to cover the principal and interest. I was missing {$100.00} of an increase in escrows recently accessed. My complaint and question are how can the bank hold the funds with no action, state that they have not received the payment and not apply the funds to an account that they know will continue to incur additional interest? The bank can send statements with additional fees but can not apply funds they have in hands to your account. This is an elegant way to keep taking your money. I request removal of this additional fee from the account and review of the practices of this institution. This kind of practice can affect a considerable number of customers eventually. Living the economic times we are facing, anything counts.

Company response to consumer: Closed with explanation