Consumer complaint received 2025-08-05 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem accessing account
Company: KEYCORP
State: CO

Complaint narrative:
I AM SUBMITTING A FORMAL COMPLAINT AGAINST KEYBANK KEYBANK FRAUD DEPARTMENT KEYBANK BRANCH XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX  * Repeated and unexplained account locks * Conflicting information from customer service and branch representatives * False or misleading statements * Improper fraud classification of a returned check * Withholding access to funds * Emotional and financial damages over a period of seven days and counting TIMELINE AND DETAILS I initially contacted KeyBanks customer service and was transferred to the fraud department, where I received vague responses and no explanation. One representative told me, * Hopefully it gets resolved before it escalates. * When I asked what that meant, she said she couldnt say. 

I then called the branch and spoke with * * XXXX * *, confirming all my recent purchases. Despite verifying that there was no unauthorized activity, I was told the fraud department had still flagged the account. XXXX later stated that the check I deposited had been returned but gave no reason and claimed, * It isnt KeyBanks fault. * I then contacted * * my employer * *, who confirmed that the check was valid, funds were available, and it was simply a clerical error. I informed both XXXX and * * XXXX XXXX * *, the branch manager, that I had already spoken with the check issuer, but they repeated that I needed to * refer to the maker. * Ultimately, they agreed that a reissued check would be necessary. 

Important Context : * The check in question was from the * * same employer and account * * that issues my regular * * direct deposit paychecks * *. 
* I have deposited checks from this employer * * multiple times * * without any issues. 
* This particular check was for * * commission and paid time off * *, totaling * * \ {$3600.00} * *. 
* This amount is reported as income and appears on my XXXX XXXX statement ( attached ), which includes tax withholdings and retirement deductions. 
* I will also provide copies of previous checks accepted without issue by KeyBank. 

XX/XX/year> Email From XXXX XXXX * * XXXX emailed the following instructions : XXXX * The Back Office has suggested that you come into the branch and fill out what is called an affidavit regarding the check that XXXX XXXX  did not honor. Additionally, if you are able to provide a replacement check, we can deposit that check for you and make it available the following day... Upon receipt of the affidavit, we can request that the restrictions be removed from your account. * XXXX XXXX, 2025 Visit to Branch * * After taking * * unpaid time off work * *, I visited the branch with the reissued check, expecting funds to be released as promised. Instead : * I was told to sign an affidavit * I was informed the funds would be placed on a * * 10-day hold * *, directly contradicting the prior written assurance that funds would be available the next day * I felt * * lied to * * and * * misled * * by branch staff who * * lured me into the branch under false pretenses * * The fraud department had already confirmed to me that * * the branch had full authority to release the funds immediately * *, making this even more frustrating and harmful. 

Ongoing Harm and Impact Due to this mishandling by KeyBank, I have now been without access to my money for * * seven days * *, which has caused : * No access to funds in my account, including those * * unrelated to the returned check * * * * * No food, no gas, and no medication * * * * * Missed work * * and * * unpaid time off * * * * * Late fees * * and * * declined auto-payments * * * * * Cancellation notices * * for auto insurance and cell phone service * * * Severe emotional distress * * and * * loss of sleep * * XX/XX/year> Letters from KeyBank * XXXX I received two letters dated * * XX/XX/year> * * ( attached ) : 1. One stated that my account was now * * overdrawn by more than \ {$3000.00} * *, due to a check KeyBank claims was returned. 

XXXX. The other stated that I was under a * * fraud investigation * *. AND IT CAN TAKE UP TO 30 DAYS TO INVESTIGATE. ( NO MONEY FOR 30 DAYS ) This is completely inappropriate. The check was valid, made out to me by my employer, and was returned * * due to a clerical error * *, not fraud. 

* * Seven days later * *, I still have no visibility or access to my accounteven funds that were already there prior to this incident. 

I HAVE STOPPED MY DIRECT DEPOSIT IN FEAR OF NOT BEING ABLE TO ACCESS IT. 
Attachments : * Email from XXXX XXXX dated XX/XX/year> * XXXX XXXX  statement showing \ {$3600.00} income * Copies of previously deposited checks from same employer * Letters from KeyBank dated XX/XX/year> 2025

Company response to consumer: Closed with explanation