Consumer complaint received 2025-11-05 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Opening an account — Confusing or missing disclosures
Company: KEYCORP
State: NY

Complaint narrative:
NOTICE AND DEMAND On XX/XX/XXXX, after preparing all required documentsincluding a certificate of trust and IRS XXXX visited KeyBanks XXXX XXXX branch to apply for a business trust account. All documents were official, typed, and clearly legible except for required signatures. I met with the branch manager, XXXX, and submitted the full package.Between XX/XX/XXXX and XX/XX/XXXX, I followed up repeatedly by phone and email, requesting written clarification of any outstanding issues or deficiencies. KeyBank never requested additional or corrected documents, nor did the branch ever tell me there was a problem. Instead, I was given vague excuses for delay, such as flood damage at the branch, but confirmed by phone that the branch remained open the entire time.On XX/XX/XXXX, after weeks of waiting and multiple attempts to communicate, the manager only stated the answer is nowith no written response, explanation, or opportunity to cure. Throughout XXXX, KeyBank did not provide any reason for rejecting my application. It was only after I escalated the matter to the CFPB and OCC that KeyBank sent a written reply, for the first time alleging that some documents contained illegible ink. The bank did not identify which document ; all paperwork was typed except for the signature. At no time before this denial was I told anything was unreadable, nor was I allowed to resubmit or correct a document.I am requesting an investigation into KeyBanks refusal to provide transparency, written notice, and fair due process in evaluating my trust account application, which I believe constitutes improper denial, obstruction, and violation of regulatory, UCC, OCC, and SEC requirements. Alongside my trust account application, I presented a perfected commercial claim for funding, with all supporting regulatory documents. This claim was marked with a valid SEC XXXX flag to ensure transparent and legal handling of the assets under federal securities law and anti-fraud protections. The submitted claim was legitimate, complete, and in strict compliance with both OCC and SEC rules.KeyBank denied both my account application and my matured commercial claim. No written justification, contemporaneous notice, or specific deficiency was ever cited regarding the claim or the SEC XXXX flag. This is a direct violation of industry practice, the Uniform Commercial Code ( UCC ), OCC regulations, and federal SEC compliance rules regarding flagged assets and proper claim processing. KeyBank 's denial of a legitimate, SEC Tracer-flagged funding claim and obstruction of both the trust account and asset funding process are violations of these banking, commercial, consumer, and securities laws. The company has refused to honor regulatory, anti-fraud, and transparency requirements, and has not given any real opportunity to cure, resubmit, or clarify. I request the immediate investigation and enforcement of my rights under all cited statutes and regulations.Please treat this as a formal continuance and supplement to my original complaint description. KeyBank 's Own Policies and AgreementsKeyBanks Deposit Account Agreement and Funds Availability Policy requires timely and clear communication with applicants, including the provision of written explanation for adverse actions and rejection of account openings.KeyBanks fiduciary duty as a financial institution includes maintaining transparency and giving customers the ability to cure defects before adverse decisions, as well as safeguarding customer data, claims, and applications in accordance with public policy.2. Breach of Fiduciary DutyCase law ( XXXX XXXX XXXX v. Key Bank N.A. ) finds KeyBank liable for breach of fiduciary duty by baselessly disputing and denying claims without sufficient explanation or due process. KeyBank must keep accurate records, communicate material account decisions, and promptly provide reasons for denial or adverse action. Failure to do so is a direct breach under OCC and federal standards.3. Bad Faith & NegligenceUCC 1-203 requires banks to act in good faith and with reasonable commercial standards of fair dealing. Denying the claim and trust account without citing actionable defects or allowing resubmission demonstrates bad faith negligence.4. Unfair, Deceptive, or Abusive Acts/Practices ( UDAAP ) The CFPB and New York law prohibit banks from engaging in unfair, deceptive, or abusive acts or practices, especially in account denials. Failure to disclose documentary defects, stringing along the customer with delays, and not providing a cure period may be construed as both unfair and deceptive.Denial without specifics or process is likely a violation under Dodd-Frank Title X, Section 1036 and NY GBL 349.5. Regulatory Violations : OCC, CFPB, SECOCC Bulletin XXXX : Banks must protect customer information and handle flagged transactions ( e.g., SEC XXXX Flag ) transparently and lawfully. Ignoring SEC flags or refusing to process flagged claims is a federal violation. CFPB Final Rule ( XXXX ) : You have the right to access application/claim data under section 1033. KeyBanks refusal is a direct breach of data right .6. Trust, Estate & Commercial Account OversightNew York requires banks to follow clear trust account oversight mechanisms, including an obligation to explain and document all decisions relating to trust and estate funds. KeyBank obstructed the funding of a matured, perfected commercial claim supported by full documentation, UCC filings, and the SEC XXXX flag. 7. Consumer Protection Law Violations XXXX  Consumer Protection Law forbids unconscionable and deceptive trade practices. Denial without clarity or transparency is prohibited and subject to enforcement or relief. 8. Funds Availability and Tax DocumentationKeyBanks Deposit Account Policy specifies that an account can not be denied if the applicant has certified or provided all required federal tax documentation ( XXXX ). Denial absent documentary proof is unlawful.

Company response to consumer: Closed with explanation