Feedburner count

Key Bank USA

Star Half star Empty star Empty star Empty star
74 Reviews & Complaints

Most Popular | Newest | More Options >
More filter options:
The Key bank collections department - uneducated about their loans and poor customer support.
Posted by Kidbee on 09/14/2005

I am regretting the day I borrowed student loan money from Key Bank. Every Year my in school deferments have been handled inappropriately. Even though I am in the student clearing house verifying my in school status by the loan servicing people at AES and by my school mails out deferment forms I get turned over to Key banks collection department. They are the rudest, most insulting and uneducated people I have ever had to deal with in my life. They obviously have no education and training on how to communicate and deal with customers in a respectful manner. Make sure you have an attorney to file a harassment case. They call you SEVERAL times a day and actually call you childish names. Like that is going to get anywhere with an educated person. My school has actually placed them on a "Do NOT Borrow" from list because of the inefficiencies and lack of customer support. After attending both Dental and Medical school and obtaining many school loans from other lenders, this lender happens to be the only one having difficulty placing me in school deferment. HUMMMM
Eli and Elsa, I am really sorry life turned out the way it did for you. Your miserable and it shows. You’re not very good at what you do. I'm really sorry you weren't able to accomplish more in life. I have realized that this is why you treat people who have had more success in life with such dislike. You're just jealous. I really pity you.

Read 3 RepliesAdd reply

User Replies:Close comments

Posted by Anonymous on 2005-09-18:
Hmmm, insults, how wonderful! That'll make them listen to you. /sarcasm
Posted by TheUnemployed on 2009-07-07:
I agree with this poster, worst place to deal with.
Posted by Stac on 2013-10-16:
SSSSSOOOO True... I can not say it enough.... WORST place to borrow from.... avoid at all costs!!!!!!!!!!!!!!!!!
Close commentsAdd reply

Clearing A Check And Then Bouncing The Same Check, Huh?
Posted by Stewy2430 on 11/18/2008
TAYLORSVILLE, UTAH -- Big Bank Vs the Little People

Alright here’s the scenario. You live a modest life and generally budget yourself paycheck to paycheck. This isn’t because you choose to be this way but your current financial situation demands it. So there you are, it’s the end of the month and once again time to pay the bills. Now have you ever seen the cartoon of the poor family that puts all their bills on little pieces of paper and put them in a hat? Well in the cartoon drawing the parents allow the kids to draw from the hat to see what bills get paid and in what order that month.

I used to not get the joke either, but seeing as I am still very early in my career and paying the penalties of past poverties, I truly understand that cartoon now. Anyway back to the point, there you are balancing your checkbook and deciding what bills to pay with what you have. The obvious and most immediate bill that must be paid is your rent or mortgage. So simple enough you write a check for $492.00 to pay your rent.

Ok fine that’s over with. Now you read the threatening letters and realize you are a month behind on your insurance. The letter reads “Pay now to avoid cancellation”. Now that’s fine and dandy but since you are behind a month the insurance company insists you pay the full amount due of $330.00. Wow, now you have a problem because you have exactly $137.34 left over, which would have covered your insurance just fine normally but again you must pay 2 months to stay insured. So what to do… Well previous experience has taught you that your rent check clears within 1-4 days. So you wait a few days and then mail out a check for the $330.00 and cross your fingers. The hope is that the bank clears the check and nails you with an already high overdraft fee of $36.50. A few days later your roommate calls you to tell you that the rent check hit and went through just fine. Just to be sure you look online at your online statement. And read what’s below. I have even copied the statement information as best as I can without a column format. The statement reads.

11/10/2008..... Check............. Check#218................ $492.00............$137.34

Perfect, the rents clear, no problem right?

Ok, so later that day your insurance hits. So what happens? Well again here is a cut copy of the way that looks on your statement.

11/10/2008...Serv Charge..Tier3 Overdraft Item Charge...$36.50.........$-229.16

11/10/2008...Check......Check #184................................$330.00........$-192.66

11/10/2008...Check......Check #218................................$492.00........$137.66


Alright, perfect, things worked out. And you get paid again in a few days so that negative 229.16 won’t be a problem. You’re ok this month. All that ramen eating and careful budgeting of your gas has paid off…!

Well maybe not..

One week later you come home late from work to find a “3 days to pay or vacate” notice. “Wait a minute! WHAT? I know my rent check went through. I better double checked to be sure.” You think in your head about the math and what your statement read. (629.34- 492.00= 137.34) Yup I remember. There must be mistake right? So what do you do? Well you go back to the source right…. ? So you log in online and look at your statement. It still says the same things as above, but there’s more… Here’s another cut copy of this very same statement.

11/12/2008..Serv Chg....RETURN CHG: CHK 218 AMT 492.00.......36.50.......519.84

11/12/2008..Serv Chg....RETURN CHG: CHK 184 AMT 330.00.......36.50.......556.34

11/12/2008..Reversal.....REVERSE CHECK.....................................330.00......592.84

11/12/2008..Reversal.....REVERSE CHECK.....................................492.00.......262.84

11/10/2008..Serv Chg..TIER 3 OVERDRAFT ITEM CHARGE..36.50.................-229.16

11/10/2008..Check.......CHECK # 184................................330.00...............-192.66

11/10/2008..Check.......CHECK # 218................................492.00..................137.34


Ok now are you as confused as I am? Yea you read it right. The bank bounced both checks. Now how can they do that? AHH WELCOME TO KEY BANK!

Now, for some more math. The apartment complex has assessed some late fees and penalties that you must pay 45.00 dollars for non-sufficient funds, 50.00 dollar late fee and since it’s now the 7th 5.00 dollars a day fee since the 5th ($60.00). Totaling =155.00 dollars. Now the bank also has to have their piece of this. 36.50 For each check “overdraft fee as they call it and 36.50 for return check fee as the call it. Yes, you heard me correct. Key bank not only bounces you when you do have money but charges you for overdraft and return. The terms themselves contradict. I mean which is it? Did you overdraft me or return my check?

Alright so let’s assess the damage. 155.00 (for the apartment) + 140.00 (for the bank 36.50*4) total= 295.00 dollars in fees. Grand total for rent in November = 787.00 Oh and don’t forget to pay within 3 days or be thrown out☺. Not to mention your insurance company is a whole other problem.

Now I will admit fault in being short on my insurance, I took a chance and figured I would face the consequence with progressive. Never did I imaging this though. It makes no sense what so ever. WHY? HOW? HUH? WTF?

So I made some phone calls. This is not the first time I have been screwed by key bank and this was not going to taken lightly. So I call 1-800-Key-2-You and spoke with a very pleasant woman named Valarie. She looked over my account for a few minutes and then of course I had to ask… “How?” How did this happen? I half expected a standard crazy answer about how the tellers have a completely different view of my account and on her screen it makes absolute sense. (Believe it or not this is the traditional answer and true even. What you see on your online statement is not reality! The tellers have an entirely different order to the way checks or debits come out of your account, thus explaining the reason why I got fees for nothing some time ago according to my online statement anyway.. Total Bullshi@# but anyway) To my surprise she put me on hold to get her supervisor to explain this one to her. She even had the supervisors’ supervisor look at it, just to be sure. So would you like to hear the brilliant KEY Bank response to my dilemma? “We have no idea how” Which of course brings you to another question.. “HUH?”

So okay, fair enough. The bank made a mistake. Again! (Did I mention that if you put Cash in a Key Bank ATM after 3pm on Friday and try to spend anything more than 100.00 dollars on Monday night after 9 pm you will be charged severely! Yep, you heard me right Key Bank takes 4 days to clear cash. And don’t be fooled by your ATM receipt that says you have the funds available. That’s how they getcha!) So where was I? Oh yea the mistake. So the Bank call center headquarters out of Washington admits they have no idea how this happened. Apparently the branch where you opened your account reserves the right to refuse payment to any check they deem necessary. And the Taylorsville branch apparently has a blind check approval agent, cause other than that, not even the call center office can explain the error. They even explained to me that the bank actually did clear these checks and the branch reversed them. Which explains why your online statement when you click on the check description says the following about both checks. (Notice the part where it says date check cleared? Umm… HUH?)

KEY EXPRESS CHECKING........................... Account ######
Check Number..............................................................218
Check Amount.......................................................$492.00
Date Check Cleared.........................................11/10/2008

KEY EXPRESS CHECKING........................... Account ######
Check Number..............................................................184
Check Amount.......................................................$330.00
Date Check Cleared.........................................11/10/2008

So what’s the result of that call? Well Since the call center that is created for solving problems with your account can not do exactly that. You are going to have to wait. Valerie, being the pro-motivated person she is, calls your branch and your apartment for you the next day. Cross your fingers, cause this going to go no where. The next day you get a call from Valerie, who seams a bit frustrated. Apparently your branch has basically told her to butt out and pack sand in her a@$. They inform her that the branch certainly made no such mistake and will look into it, but even Valerie knows that means she will do nothing of the sort. (Some customer oriented service huh?) And for all the fees. well you’re told you will need to probably sue the bank to see those again.

So what can you do now? To be honest I have to give the same answer Valerie first gave me. “I have no idea” But I feel something needs to be said. Of course I have set up a Credit Union Account where hopefully I never run into this again. BTW their overdraft fee is 18.00 and it only is charged once. I asked.. And yes I called the Key Bank Executive Client Requisition office to report some of my many problems with Key Bank. But what else? Well that is why I am writing this letter. Hopefully to warn off those thinking about joining a new Bank. I warn you. Learn from my mistake. And if my words are not enough then listen to some of the hundreds of others with similar problems. Listed on this website

Best of luck,

Another Rape Victim of Key Bank

Read 8 RepliesAdd reply

User Replies:Close comments

Posted by Anonymous on 2008-11-18:
So, the short version is that you spent more than what you had available...floated a check or two, then crossed your fingers that everything would work out, and it didn't?
Posted by Anonymous on 2008-11-18:
justcuz nailed it on the head. You tried to play the beat the bank game, and you lost.

Posted by Anonymous on 2008-11-18:
You're probably lucky you didn't get charged for writing bad checks. You gambled, you lost, hopefully you learned.
Posted by yoke on 2008-11-19:
According to what you have posted there are about 34 more checks out there. How many of those posted during that time?
Posted by Principissa on 2008-11-19:
So you wrote a check knowing you were going to OD your account and now you're mad at the bank. You do know that what you did is a felony in some states right?
Posted by hubbard53 on 2008-11-19:
I think the point was that only ONE should have bounced, right? The rent check cleared at first but then it didnt when it hit the branch. Banks are there to make money and they do so in questionable ways . . like clearing checks in whatever order results in the most bounced checks.
Posted by Davenport on 2008-11-19:
Couple of things:

1. You floated checks. That's a felony. Be happy that the money is the only thing you're probably going to lose.

2. You didn't get "raped". You were an idiot. Using the word "rape" implies that you're a victim of some kind. The only thing you're a victim of is slightly unfair business practices. Don't like what they did, don't bank with them.

Next time you need to do something like this, you're probably better off going to one of those Check/Cash places and getting money from them.
Posted by Anonymous on 2008-11-19:
Ooof! I quit reading beyond the 'paying $492 for rent'. Dang, don't I wish.

Close commentsAdd reply

StarEmpty StarEmpty StarEmpty StarEmpty Star
Worst Bank and Employees I Have Ever Experienced
Posted by Jnivary on 10/23/2013
FERNDALE, WASHINGTON -- This is a terrible bank. I have banked at many different places and this by far is the worst bank. Not only are their overdraft fees terrible, they are the only bank I have ever dealt with that has a policy in place to charge you 37 bucks and then if not brought to a positive balance charge you another almost 40 bucks three days later and every 2-3 days after. They do not show online all your pending transactions. Also, the ones that are pending and show that should be cleared and taken out are not and other transactions that do not show are pending are taken out before the others that are.

When talking to employees working there about their fees, they were extremely rude about it and talked over top of me and cut me off.

Overall I would never bank here again and would never recommend this bank to anyone looking for a bank. By far the worst ever.
Read 2 RepliesAdd reply

User Replies:Close comments

Posted by Obsfucation on 2013-10-23:
You're right, they are a pretty bad organization.
On the other hand, you have an obligation to handle your accounts in a responsible manner, and if you are dealing with recurring OD charges, you are not. From your narrative, it sounds as though you are trying to manage your account by checking balances online. This does not work.
Banks do not control when pending items clear, the merchants and data switches control that by the timing of the submission of the debit items. Because a bank cannot know when these items will clear, or if they even will clear, they cannot be reflected accurately in an online balance. Similarly, the bank cannot know that you have written a check which has not yet been cleared.
You probably should change bank, but unless you also change your banking habits, these problems will follow you in some fashion.
Posted by Paul on 2013-10-25:
Many banks today have overdraft policies not far different than what you describe. It is true that a fairly small oversight can cost you a lot of money. The key, so to speak, is to keep track of all your debits and credits, and not rely on online balances as a substitute.
Close commentsAdd reply

StarEmpty StarEmpty StarEmpty StarEmpty Star
Terrible Customer Service
Posted by Rlvoss on 08/28/2013
CLAWSON, MICHIGAN -- Hopefully anyone dealing with Key Bank won't have to deal with this branch, The branch my mother dealt with was closed. This branch was over an hour drive from her house. She had a CD come due and she missed the deadline by 4 days and they charged her more then $500 to cancel the new one. They would do nothing to help her, and didn't seem to care that she had to travel so far to take care of the situation.

When I questioned why they couldn't do anything to help, they said that was their policy (one entire years interest) and then the branch manager was very rude to me. Shame on them for treating people this way, no wonder they have to close branches. My mother is a senior citizen with only her social security to live on, and they wouldn't even try to help.

Read 4 RepliesAdd reply

User Replies:Close comments

Posted by CU on 2013-08-28:
With any certificate, there is always a grace period. You are notified that the certificate is coming due ahead of time, and you can give your instructions during that period, either in person or by responding to the notice. After the rollover you still have ten days of grace.

Personally I would never deal with Key Bank, but unless they are different from every other bank, your mother had (give or take) six weeks to do something with this certificate before the penalty kicked in.
Posted by trmn8r on 2013-08-28:
Banks (usually) have extremely clear terms on renewing CDs. You can find out the window you have to redeem it past the renewal date, as well as the penalty by simply asking. I don't see evidence Key did anything wrong here. It stinks that your mom lost a year's interest, but those are the terms and I don't agree they should waive them.
Posted by Weedwhacked on 2013-08-29:
The bank didn't cause her to miss the deadline. In complaints like this the "help" you requested is always about the bank making an exception and giving you their money. It doesn't work that way. That is the reason for terms and conditions that you agree to by contract. If the policy applies to everyone else, so it should for your mother as well.
Posted by oldisgood on 2013-08-29:
I thought the grace period to renew was 10 days. I think your mom got "took".
Close commentsAdd reply

StarEmpty StarEmpty StarEmpty StarEmpty Star
Paid Off Boat Loan With Key Bank and No Titles
Posted by Mrjjwiley on 08/04/2013
CINCINATTI, OHIO -- In 2008 I financed a boat and trailer from Key Bank for 35K and never missed a payment. In fact, I have always been paid at least 3 months in advance on a 15 year loan.

In 2011 I filed chapter 7 but continued to pay Key Bank because it was a secured loan and I didn't want to lose my boat. Two years later, I am still current on my payments. My boat gets totaled and the insurance company sent me a check to pay off the boat and trailer however listed both myself and Key Bank names on the check. The payoff was $24,000 and the check was $33,500 and I had made a deal with the insurance company to keep the salvaged boat and trailer for $1500 less. Otherwise the check would have been $35,000.

In any event I felt reluctant to just sign and send this check to them in hopes they would send me my share of the check plus the titles. I was right, it's been a month now and the $11,000 due to me and my titles are still not in my hands. They are totally ripping me off and I don't know what to do.This bank makes me sick. Any advice would be appreciated. I know that can't keep my money and titles forever. They will not discuss anything on the phone but transfer me to their bankruptcy lawyers who don't tell me anything either.
Read 3 RepliesAdd reply

User Replies:Close comments

Posted by BigAl on 2013-08-04:
This may not be as simple as you think. In 2005 the bankruptcy laws were changed. In 2011 when you filed your bankruptcy you had to list your boat along with its value and the amount you owed on it. If you did not list your boat you could be in trouble with the law. If you undervalued the worth of your boat you could also be in trouble. Hopefully you had the boat officially appraised at the time of the bankruptcy. Most judges would require that. There are several unanswered questions in your post. Was the insurance check for the boat only or was other losses, such as medical covered by the check? How many months have passed from the official bankruptcy closure date and your loss? Had you done any improvements to the boat since the bankruptcy? Now would be a good time to get your story together because I see problems in your future. Good luck.
Posted by Tezrien on 2013-08-04:
Have you tried going in to one of their branch locations and taking with the branch manager about the situation?
Posted by Jeff Wiley on 2013-08-05:
Their bank branches are in Ohio and i am in California. Also it has been two years since my BK aqndyes the it was reported ad the judge knew i was keeping the boat. There wer no medical losses included with the loss. The bottom line is they need to pay me my share of that money from the insurance check and send me my titles for the salvages that the insurance company sold me the rights to. The bank got all their money and mine as well. What they are doing is against the law.
Close commentsAdd reply

StarEmpty StarEmpty StarEmpty StarEmpty Star
Service Charge on a Dead Mans Account, After They Were Given Proof of His Death.
Posted by Rosalin on 05/10/2013
FREMONT, OHIO -- My son died in October. Two weeks after his death, I took a death certificate so no one could withdraw illegally. They then sent me a letter, they were charging him $25.00 a month service charge because no deposits were being made. I informed them again he had died, we were trying to take care of things through the court. They said they would reimburse that money. Needless to say they did not . They kept $150.00 of his money. This money was meant for his baby who was born 3 weeks after his death. I feel they robbed a dead man..
Read 3 RepliesAdd reply

User Replies:Close comments

Posted by Susan on 2013-05-10:
Have you followed up with the bank about the refund? Obviously the account your son had specified that at least one deposit must be made per month or they will charge $25. I honestly don't think they "robbed a dead man" or are purposely taking money from his baby.
Posted by ACoop on 2013-05-10:
That's ok, when my husband died I went and showed them proof so I could change everything, they sent me a card with the name "deceased first_last name" - idiots.... I still have it. They wanted it back, don't think so.... closed the account...Idiots... oh, and the card worked to withdraw money....
Posted by trmn8r on 2013-05-11:
The $25/month charge may be related to the terms your son had on that account, as Susan suggests - some checking accounts have no fee if there is a direct deposit once a month - perhaps his paycheck.

This highlights the benefit of having an executor and not having to wait for probate.
Close commentsAdd reply

StarEmpty StarEmpty StarEmpty StarEmpty Star
Key Bank Fraud
Posted by Jpdid168 on 03/10/2013
I received a call on my cell phone. It was an automated message stating that my Key Bank debit card had been locked for security purposes. As I do not have a Key Bank debit card, I assumed it was a mistake. The automated voice instructed me to press “1” to have my card unlocked or “2” to disconnect. Wanting to speak with someone, I pressed “1”. I was then prompted to enter my 16 digit debit card number followed by the “#” sign. Believing this to be a scam, I hung up. When I called the number back, an automated voice said “no one is available to take your call” and hung up. I looked up the phone number on the internet and found that it is a number associated with a mortgage scam. As I do have a student loan with Key Bank, I feared that my information might be compromised. I called Key Bank and explained what had happened. The “customer service” representative requested my full Social Security number. I told him that I was calling to report a phone scam and asked what my social security number had to do with anything. He told me that he could not take my report unless I would provide him with my social security number. Frustrated, I asked to speak with a supervisor. After reaching a supervisor, I again explained what had happened. He asked me for my phone number. I gave him my phone number and he stated that I didn’t have a debit card with Key Bank. Again, I explained that I did not have a debit card with Key Bank, only a student loan, and that is how I knew it was a scam. At this point he pulls up my student loan account and asks me if I’d ever filed bankruptcy! I explained to this idiot that I had indeed filed bankruptcy following my divorce, but asked him what that possibly had to do with someone running a phone scam, pretending to be Key Bank. Then he asked me if I had spoken with their legal department regarding my bankruptcy.

Disgusted, I requested that he just transfer me over to the fraud department so that I could make a report. He did transfer me and after 15 minutes on hold, I hung up.
Read 4 RepliesAdd reply

User Replies:Close comments

Posted by jktshff1 on 2013-03-10:
Good review thanks
Posted by AlsoReceivedCall on 2013-06-16:
June 16, 2013 - I just received this exact call at 1:30AM. What Fraud Department anywhere is working in the middle of night? Thinking a call like this from KeyBank tipped me off that it has to be a scam. I also do not have a Debit MC there. I did not press 1, I just hung up. Please beware.
Posted by Judy on 2013-06-18:
We called KeyBank to let them know four of our family members got calls like the one described above. The customer service rep. told me that I could ask my phone company to block the number.

I'm wondering why KeyBank isn't bothering to warn their customers of this fraudulent activity? Many customers have phone apps. or we've given our email for monthly account updates.
Posted by Allen on 2013-11-21:
I did not receive my regular bill from Key for my 2nd mortgage loan which I had been getting for 12 years. I finally called after waiting 2 extra weeks to ask why and what my loan payment was for this month. They transferred me 4 times until I got a supervisor who said Key bank had changed their policy and anyone who had a bankruptcy in the past would not receive bills any more. (mine was in 2004 but Key had reinstated it because it was not a chapter 7.) I received bills since that time every month. suddenly a policy change with no warning or written explanation. Like they were hoping I would default so they could foreclose. Fraud.
Close commentsAdd reply

StarEmpty StarEmpty StarEmpty StarEmpty Star
No Phone Call, Letter in the Mail, or Email- Before Sending It to Collections
Posted by Koenig.greg on 01/04/2013
WASHINGTON -- I have used Key Bank for 3+ yrs. Never have had great experiences or assistance in any of that time. My account was a secondary acount I used for nothing but paying bills and saved money in a Credit Union. I received an email saying my account was over drawn, I had forgot to close it out and had fully changed banks but forgot one insurance company. That company tried to pull the money mulitple times resulting in overdraft fees galore. End result I was overdrawn $400, got the email in December but at that same time they closed it and sent it to collections. Protocol apparently is to call before it gets that far. I never received any phone call and the lady I talked with agreed with me. Nor did I receive a letter or email saying my account would be closed and sent to collections. Its called being human, one phone call will solve most issues, if you don't try then you will never know or your customer may never know. I have told everyone I work with I will pay them to pull out of banking with them and will tell everyone I run into to do the same thing. Absolutely idiotic business practice. No wonder I see lots of people cancelling their accounts with them. Key Bank- The "KEY" to success is really taking care of customers especially for Fricken $400!!! NEVER WILL I RECOMMEND, send customers to you, or work with you again!

Read 1 RepliesAdd reply

User Replies:Close comments

Posted by At Your Service on 2013-01-05:
How much are you offering to transfer balances from Key Bank?

I don't believe most companies use collections to strictly collect on accounts that are being "willfully unpaid". Collection companies and divisions are used to obtain payments from human mistakes too.

I'm glad you got it paid.
Close commentsAdd reply

Posted by Shaman on 12/11/2012
A student pilot I know got over $100,000 in loans from Key bank to become a pilot. Pilots who start out today barely make a living. Furthermore, many were caught being laid off. The airline industry fell in hard economic times. That makes it impossible for a graduate to make payments, rent, car, gas, food. Key Bank did a settlement for about $25,000. The person did not have to file bankruptcy.The loan was not a government school loan. It falls under alternative loan.
Read 6 RepliesAdd reply

User Replies:Close comments

Posted by CUontheFlipSide on 2012-12-11:
That's great, but does he realize he has to pay income taxes on that $75,000 that they wrote off? He may be in for a very rude awakening come January.
Posted by Old Timer on 2012-12-11:
Wow, a 75% write-off, well done. Guess Key Bank will have this customer for life. Might even get a portion of their write-off back.
Posted by yoke on 2012-12-11:
That was awesome of the bank to do that. I was thinking the same thing about the $75,000. Wonder if the OP's friend is aware of it
Posted by bob932304 on 2012-12-11:
I am a curmudgeon, something doesn't sound right about this story. A bank isn't going to blow off $75,000. BUT, it they did the pilot will owe taxes on the $75,000 (as stated in previous posts).
Posted by CUontheFlipSide on 2012-12-11:
Yeah they might, and they aren't all that altruistic. If the guy is teetering on bankruptcy, they'd rather get something than nothing.
Posted by Shaman on 2012-12-15:
The Insolvency Rule (IRS publication 908)
Most Debtors find that there is actually a big “loop hole” called the insolvency rule that allows them to NOT have to pay any taxes on the forgiven debt. According to the IRS, if you are “insolvent” at the time of the debt forgiveness, (which most consumers are if they are enrolled in a debt negotiation program) then you have no tax liability on the debt reduction up to the point that you are insolvent.
Let me put that in English for everyone. If your debts outweigh your assets then you are insolvent. So if you have a negative net worth then the IRS lets you slide and does not require you to pay taxes on the forgiven debt. As an example, if you where 100K upside down on your house, had 50K in credit card debt and only 40K in assets then you would be insolvent by 110K and you would not have to pay taxes on any of the settled credit card debt..
Most consumers find that if they are so far upside down financially that they have to look into a debt negotiation strategy, that they are also insolvent and therefore not liable for additional taxes on the amount of debt forgiven. As always though, check with a qualified Tax consultant about your specific situation, and ask if the Insolvency Rules would apply to you.
Close commentsAdd reply

StarStarEmpty StarEmpty StarEmpty Star
Poor Online Banking Service
Posted by Lebaker620 on 11/02/2012
BURLINGTON, VERMONT -- I opened an account with Key bank about 6 months ago. I am used to paying my bills online, so I started online bill pay with Key. My former bank’s online bill pay was very fast and reliable. NOT so with Key Bank. In August, I sent out a credit card payment that was due in 2 weeks. It showed up LATE. Key bank had two weeks to get the payment out. I was charged a $25 late fee by my credit card company. I paid online again In September with no issues. October rolled around and the problem got worse. I sent out two payments that were due in 3 weeks. I sent them out around October 5th, and my credit card company had not posted the payments as received by the 22nd of October! I called Key Bank, waited a long time, only to find out that when they do an “online payment” they actually mail a paper check to the credit card company. BOTH payments were lost in the mail (or never sent?). Again, they did not get there on time and my credit card company charged me. Luckily, I got those fees reversed by telling them about how slow Key Bank is. If I had known that I would have written a check myself! Speaking of checks, they charge almost $50 for a book of checks if you don’t have free checking! I am not too happy with Key Bank, have changed my method of payment.
Read 2 RepliesAdd reply

User Replies:Close comments

Posted by Dukemom on 2012-11-02:
I'll admit that I've never used my banks online payment service but it seems to me, the best way to avoid being late is to go to your cc's site and pay directly. Works for me anyway.
Posted by trmn8r on 2012-11-03:
You have to understand each feature of your institution/account. What you describe sounds like "online bill pay", and it works the same at my checking bank. I've never used it - when I want to send a check I do it myself. I don't trust my bank, for reasons I can't explain, to put a check in the mail.

I pay my credit cards by "pulling" the payment from the credit card side. It is *flawless*. The best feature by far is I make the "payment date" the due date. Chase marks my bill paid on the due date, and takes the payment in 1 or 2 days.

I just looked and see Dukemom uses the same approach for CCs.
Close commentsAdd reply

Top of Page | Next Page >