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KeyBank responsible for delay in unemployment benefits

Posted at 1:14 PM, Sep 18, 2020
and last updated 2020-09-19 09:05:50-04

BUFFALO, N.Y. (WKBW) — KeyBank is apologizing for an issue that caused a delay in the processing of supplemental Lost Wages Assistance payments for thousands of unemployed New Yorkers.

The Cleveland-based bank initially said a processing problem held up the individual payouts of an additional $300 in benefits by three hours this morning.

"We are reviewing our processes and systems to ensure future LWA payments are processed correctly and delivered on time," the bank said in a statement.

In the initial statement the bank said issue was resolved and all recipients would receive their payments by 4:30 p.m. Friday. In an additional statement Friday evening, the bank said those who receive direct deposit should have their funds but there was an unexpected further delay for those who receive their payments via Key2Benefits pre-paid cards.

"Earlier today KeyBank shared that a processing error had caused a delay in Lost Wage Assistance (LWA) payments to New Yorkers. We indicated that the issue had been resolved and payments would be made this afternoon. Claimants who receive their payments via direct deposit should now have the funds in their accounts. Unfortunately, for those who receive their payments via Key2Benefits pre-paid cards, we have encountered a further, unexpected delay. We are working to resolve this issue tonight as we understand how critical these funds are to New Yorkers who are waiting on additional LWA payments. These delays are unacceptable and we deeply regret the stress this has caused claimants."

In an update issued Saturday morning the bank announced all LWA payments to New Yorkers completed a successful transfer as of 3:30 a.m. Saturday.

The New York State Department of Labor announced Friday a final round of retroactive unemployment benefits will be paid out beginning next week to New Yorkers who lost their jobs due to COVID-19.

"This round of funding provides three additional weeks of Lost Wages Assistance benefits, paid retroactively for the weeks ending August 23rd, August 30th, and September 6th," according to a press release from the state. "New Yorkers will begin to receive these payments next week."

The Department of Labor says its paid out almost $2 billion in Lost Wages Assistance to 2.26 million New Yorkers this week, "representing retroactive payments of $300 for the weeks ending August 2nd, 9th, and 16th."

In total, the state has paid out $44.5 billion in unemployment benefits as a result of the pandemic.