Payday loan, title loan, personal loan, or advance loan -- Credit limit changed -- Complaint #7872007

Complaint Overview

Complaint ID: 7872007

Company: Keycorp

Product: Payday loan, title loan, personal loan, or advance loan

Sub-Product: Personal line of credit

Issue: Credit limit changed

State: New York

ZIP Code: 10301

Date Received: 2023-11-15T12:00:00-05:00

Date Sent to Company: 2023-11-15T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

XX/XX/XXXX Consumer Finance Protection Bureau XXXX XXXX XXXX Washington, DC XXXX [ PARAGRAPH BREAK ] On or about XX/XX/XXXX, I reported to the Federal Reserve and your office ( see Case number : XXXX ) Key Banks XXXX discrimination and disparate treatment of me during the application process for their Preferred Line of Credit product. Although Key Bank reversed its denial and approved my preferred line of credit application after your offices intervention into the matter, Key Bank is now harassing ( and bullying ) me to apply recurring charges to the same line of credit account and has even been retaliating and punishing me for my periodic usage of the same line of credit account by damaging my otherwise strong credit reporting history and reputation. [ PARAGRAPH BREAK ] Key Bank has been damaging my otherwise strong credit reporting history and reputation first by refusing to report the preferred line of credit account ( which Ive had for over 7 years now ) to XXXX credit bureau ( or XXXX ). And because I am carrying a balance on accounts outside of Key Bank, Key Banks failure to report the preferred line of credit account to XXXX has had the effect of doubling my credit utilization score to a whopping 66 % because my {$25000.00} credit limit from Key Banks preferred line of credit account is not being factored into my credit utilization score. Had Key Bank reported the line of credit account to XXXX, my credit utilization would be under 30 % which most lenders consider to be an acceptable credit utilization score. Key Banks refusal to report my preferred line of credit account to XXXX is also retaliatory and is penalizing me for carrying balances ( and doing more business with ) other banks and financial institutions, which is my prerogative. [ PARAGRAPH BREAK ] Then last week, Key Bank unjustifiably reduced my preferred line of credit limit by a whopping {$8000.00} which will, in turn, drastically increase my credit utilization scores on my XXXX and XXXX credit reports starting next month. KeyBank gave bogus reasons for the credit line reduction such as my periodic use of the preferred line of credit account, the balances Im carrying ( and the business Im doing ) at other banks and financial institutions, and a single 30-day missed payment that occurred over 5 years ago on a non-Key Bank account despite the fact that I have a stellar payment history and never missed a payment on my preferred line of credit account with Key Bank XXXX [ PARAGRAPH BREAK ] To date, Ive contacted KeyBank customer service numerous times who was not helpful at all and did not refer me to the correct department that can address and stop Key Banks discriminatory, harassing, and retaliatory lending practices. [ PARAGRAPH BREAK ] To be clear, Key Banks preferred line of credit account is a personal line of credit account that Key Bank is forcing me to use as a credit card which typically does have recurring use requirements. But unlike a credit card, my preferred line of credit account does NOT have a debit or credit card attached to it which would allow me to set up recurring payments with third-party creditors or merchants. Moreover, my Key Bank preferred line of credit account is NOT a checking account ( it is classified as a revolving loan account at Key Bank ), which means I also can not set up recurring ACH or bill payments from the preferred line of credit account. Key Bank is now setting my preferred line of credit account up for complete closure, which will have a devastating effect on my strong credit reporting histories at XXXX and XXXX credit bureaus.

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