Key Bank USA Overdraft Fees

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Key Bank Theft
By -

CLEVELAND, OHIO -- Before you read all the replies note that several of these individuals seem to post to many of the KeyBank complaints and they all seem to have star ratings on them and follow the Key Bank indoctrination of saying the same thing over and over. Hmmmm Paid employees perhaps????

First I will explain I have several accounts this info reflects most about my Business. This is the letter I have emailed to the local media, OCC and Key Bank. I want everyone to know they are rip-offs. I have forwarded this page link to these agencies also. Maybe someone will listen.

It has become a never ending battle to keep an accurate record of my bank accounts. I feel that putting my money in my account is no better than putting it in a slot machine. The odds are against me. What ticks me off the most is when I make the slightest mistake it cost me dearly. When I follow the bank policy I still don't have a leg to stand on. When the bank makes a mistake that I can prove then I have to fight tooth and nail to just get back my money and they pay no penalties. I will list a few issues I have had in the past year and yes I will provide a detailed report to the OCC but I believe they are not consumer friendly and are probably bought and paid for by the financial industry.

Back in March or April of last year I received a decent size check from an insurance company. I deposited this check on a Wednesday and it appeared in my account as being available Thursday and Friday. On Saturday it was taken back out. “I am glad I didn't write anything on it”. When I called the bank to explain they told me they put a hold on the money. “They had to make sure the check was good and they would get their money”. The ironic thing about this is that they could tell me during that same phone call the exact date and time it would be available in my account “Friday at midnight 5 days later.”

Several weeks ago “and I have had this happen before” I deposited a check “from a client I always do business with” on a Saturday. The check cleared on Monday and showed it to be available. Several items were taken out against this on that same day. “I travel a lot and the bank loves to hold my transactions to catch my account low.” As you can see below the next day I was hit with 10 overdraft charges.

I have sent emails requesting this be corrected and I received one correspondence in the mail which if you read it carefully you will see I am in no wrong and it is a book to say the least I would like to title it “How to rip off your clients”. They lied about the date I deposited the check and I verified with my client when their bank withdrew the funds from their account. To date I got a pathetic “as a good will gesture we will refund 5 of these overdraft but we are not in the wrong.”

38.00 839.53
38.00 877.53
38.00 915.53
38.00 953.53
38.00 991.53
38.00 1,029.53
38.00 1,067.53
38.00 1,105.53
38.00 1,143.53
38.00 1,181.53
09/18/2007 Reversal EASY SAVINGS AVIS REBATE NY 29.91 1,219.53
09/17/2007 Debit Card POS MAC USPS 5.94 1,189.62
09/17/2007 Debit Card PARADIES-RENO RENO NV 7.35 1,195.56
09/17/2007 Debit Card HMSHOST-PHX-AIR Q63 PHOENIX AZ 9.06 1,202.91
09/17/2007 Debit Card CONTINEN AUSTIN TX 15.00 1,211.97
09/17/2007 Debit Card APCOA CLEVELAND HOPKIN CLEVELAND OH 60.00 1,226.97
09/17/2007 Debit Card CIRCLE K 71.04 1,286.97
09/17/2007 ATM ATM KEY 100.00 1,358.01
09/17/2007 Debit Card BEST WESTERN AIRPORT P RENO NV 116.63 1,458.01
09/17/2007 Debit Card OMNI HOTELS AUSTIN S. AUSTIN TX 182.85 1,574.64
09/17/2007 Debit Card CONTINEN 00521534855446 AUSTIN TX 416.40 1,757.49
09/17/2007 Debit Card AVIS RENT-A-CAR 1 PHOENIX AZ 598.15 2,173.89
09/17/2007 Check CHECK # 600.01 2,772.04
09/17/2007 Deposit ATM 2,000.00 3,372.05

Today I open my account and see they have double charged me for several items see below email I sent earlier to the same person I have been trying to get to correct my other issue.

I want you to take a very close look at the information I have copied and pasted from my account this AM. As you can see there is a reason I do not trust or believe anything you try and shovel at me. I call this a “Tiear2 Over Drawing charge” and for each occurrence it is a $380 charge. Please redeposit all the money you have, once again stole from my account and $1900 for the charges I have imposed.

Cleared Activity
10/03/2007 Debit Card MCDONALD'S F14723 Q17 AMHERST VA 4.79 90.86
10/03/2007 Debit Card MCDONALD'S F14723 Q17 AMHERST VA 4.79 95.65
10/03/2007 Debit Card EXXONMOBIL 42038240 BEAVER WV 53.18 100.44
10/03/2007 Debit Card EXXONMOBIL 42038240 BEAVER WV 53.18 153.62
10/03/2007 Debit Card MARATHON OIL 156018Q96 ATWATER OH 63.48 206.80
10/03/2007 Debit Card CHEVRON 0173012 WHITE SULPHURWV 70.58 270.28
10/03/2007 Debit Card CHEVRON 0173012 WHITE SULPHURWV 70.58 340.86
10/03/2007 Bill Pay BILL PAY: 643.85 411.44
10/03/2007 Debit Card xxxxx 7.25 1,055.29
10/03/2007 Debit Card xxxxx 7.25 1,062.54
10/03/2007 Debit Card SHONEY'S OF LE14711Q68 LEWISBURG WV 11.11 1,069.79
10/03/2007 Debit Card SHONEY'S OF LE14711Q68 LEWISBURG WV 11.11 1,080.90

P.S One more piece of evidence to provide the OCC with. They did finally correct the double charges but that is all and I have received no word from them.

I also received a call from them a little while back for a late payment on a loan I have with them “personal account.” They called me then demanded I give them my full SSN before they would tell me anything. I had no clue at the time why they were calling and therefore told them I do not give my full SSN or Account number over the phone if I didn't call them and didn't know who I was speaking with. I filed a complaint with the Ohio AG and it was referred to the OCC by their office “AG Complaint **” .

I also believe “I don't have all the information yet” that they are sitting on a refund that I received from a car rental company “it might prevent them from catching my account low again”

I know it would be easy to say just changes banks “I have started this process”. The problem is I am one of thousands of their customers. So my question is how much money are they stealing on a daily basis and why isn't there any oversight. Someone should be facing criminal charges for this because I believe it is intentional. If you do a search on the net like “Keybank sucks or Keybank Rippoff” you will see there are a number of people who are complaining. Some justice needs to be done. If it requires me to show my account I will.

In all fairness I have CC the bank on this I want them to know I mean business and will not stop until I see some action not only for myself but for all the consumers out there…….

Consumers Take Action Against Key Bank
By -

CLEVELAND, OHIO -- For all of us who have been wrongly charged an overdraft fee by those Key Bank thieves along with their incompetent customer services reps, there may be justice coming for all of Key Bank customers. There is a class action lawsuit against Key Bank regarding their manipulation of charges to make more profit through overdraft fees. As some may not be aware, Wells Fargo had a similar lawsuit that just got settled in which the Judge ordered Wells Fargo to pay $230 million back to customers. I sincerely hope that the Wells Fargo settlement case sets a precedent for current and future litigation against banks such as the class action lawsuit against Key Bank.

My personal story with Key Bank regarding overdraft fees is similar to everyone's else experience it seems. But I'll go ahead and share: On July 28, 2010 my bank account was charged an overdraft fee of $37 even though my account balance was still POSITIVE $9.27. In June of 2010 I elected to NOT participate in Key Bank's overdraft protection services due to the $602.00 that I have paid year to date in overdraft fees.

I contest the overdraft fees on the basis that the criteria for an overdraft charge was not met (ie: the account balance was not negative after the transaction cleared) and as such it violated my rights as a consumer due to the new consumer protections laws passed earlier this year prohibiting such business practices exhibited by Key Bank in this matter. On July 29, 2010 when I became aware of the bogus overdraft fee, I contacted Key Bank Customer Service not only once, but three times.

All three times the customer service representatives declined to refund me my money and continued to argue that it was not a bank error (anyone with half a brain can look at the account statement and see that it is Key Bank's fault). That left me with no choice, so I filed a complaint with the Oregon Department of Justice, the BBB, and the OCC. Its been almost a month and I've yet to get my money back or contacted by Key Bank. However, due to Key Bank's blatant disregard for US financial consumer protection laws and failure to honor my request to opt out of their overdraft protection services, they need to be brought to justice.

Whether that be by US government regulators or the US Justice Department. I am sure that I am not the only one out there who has been a victim of Key Bank's business practices that take advantage of uneducated customers (Key Bank really shot themselves in the foot this time though). I sincerely hope that this class action lawsuit forces Key Bank to re-evaluate their overdraft protection (dis)service and adhere to all current and future laws. Sincerely, A Pissed Off Customer of Key Bank.

Abusive Overdraft Policies
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REDMOND, WASHINGTON -- I found the Website while searching for information about overdraft policies employed by Key Bank. As I read many of the posted reviews I found that what I have encountered as a bank customer was strikingly similar to many other depositor's experience. That realization was at once both troubling and encouraging. It was troubling because I did not realize how widespread abusive funds availability policies were; it was encouraging because I understood that I was not alone on this issue.

That realization was also infuriating when one considers bank customers are currently being charged by banks on two fronts: first as customer who are charged egregious fees and second as taxpayers to bail out the very banks who are charging them as depositors.

When reviewing the issues I also concluded that characterizing those who have experienced the negative and often expensive effects of abusive funds availability and overdraft policy as irresponsible miscreants who cannot balance their check book is patently false. If fact, many who have had negative experiences with abusive overdraft fees are victims of overdraft policies crafted to allow banks to ignore deposit credits while first running all check and debit card charges in order of greatest to least. This maximizes overdraft events and related overdraft fees.

The processing order practices appear to be allowed by exceptions in Federal Reserve Board Regulation CC. Once a customer has a history of overdrafts, that regulation apparently allows banks to ignore required funds availability requirements, which often creates future cascades of unanticipated and unwarranted overdraft events. It also appears that customers are not informed by the bank that their accounts are being processed under different rules that create increasing opportunity for the bank to maximize fees charged. I believe that this practice creates a separate class of bank customers who do not enjoy the benefits of deposit recognition other depositors enjoy.

Having been a financial analyst for the past thirty years and a consumer advocate for fifteen, I began additional research. The results were quite encouraging. A few of the positive facts that I discovered are as follows:

  1. In November 2008 the Federal Deposit Insurance Corporation (FDIC) published an extensive report concerning automated bank overdraft programs. The report describes many of the problems that customers have reported in reviews. The report also makes it clear that such bank practices are widespread and potentially effect up to 74 percent of all bank accounts. Finally, the FDIC report also discloses that under current bank policies overdraft fees charged to customers can amount to thousands of percent APR on the amount paid by the bank.

  2. In December 2008 a policy analyst group published a report that disclosed total overdraft fees charged by banks were $37 billion per year but net profit of the banks during a recent year was only $19 billion. This raises an important political issue: How can we as taxpayers be bailing financial institutions with hundreds of billions of our money, when those same apparently institutions cannot operate as a profitable going concern without gouging customers through abusive fees?

  3. In March 2009 House Bill 1456 was sponsored during the 111th Congress. That bill would specifically prohibit order of processing debits and manipulating recognition of deposits to maximize overdraft events and fees. If found that congressional bill to be encouraging for two reasons: first, it recognizes that complaints registered by customers about overdraft charges are entirely legitimate; and second, if passed into law the bill would prohibit many of the current bank practices that result in unwarranted and abusive overdraft charges.

I still feel the sting of hundreds of dollars at a time being taken from my account by abusive bank practices. At the same time, however, I am also hopeful that oversight reports by FDIC and proposed legislative reform by Congress can change those practices in the future. To that end I encourage folks to continue sharing their experiences in public forums.

Puyallup (WA) KeyBank overdrafts are costly and their service sucks
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PUYALLUP, WASHINGTON -- UPDATE: SAT. 8/22. My original review follows and I thank those who responded to my review. Here is an update based on the feedback that has been received thus far: Some of you said that the overdraft charges were my wife's fault. And perhaps she does bear some responsibility for not checking the paperwork more closely in the drive through lane (she asked to transfer money from savings to checking; the opposite occurred). But.....

1) The bank has systems in place that tell them when overdrafts occur. She had been a good customer for over a dozen years with nary an overdraft. Why did someone at the bank not give her a call and tell her something was going on? Instead, they let overdraft after overdraft pile up, each time collecting, I think, a $39 overdraft fee. If a call had been made, the problem could have been resolved over the phone or she would have been happy to go in and fix it. Instead she continued to write checks and use her debit card not knowing that she was being dinged for each use.

2) Even when she used one of her bank's ATM machines to withdraw cash, it gave it to her. My bank's machine are programmed to tell me that I don't have enough in my account and will not let me have the money. Her bank's ATM gave her the money (an unasked for loan I guess) and then charged her an overdraft fee.

3) When we went in and talked to the operations supervisor who didn't have the power to help resolve the problem (was there no one in the bank that could?), she said flat out that when we came back later to talk to the manager we would be able to have our story straight. Tacky and unprofessional.

4) When we did go back and talk to the manager, he said he would check it out give her a call no later than the following Monday p.m. We never heard from him. No phone call, no message, no letter..... nothing. And this was the individual that supposedly had responsibility for the entire bank.

To those of you who think it was my wife's responsibility in total, fine; we can agree to disagree. But as someone who has about 20 years experience in retail including seven as an owner/operator of my own store, this is not how I treated my customers. By the way, I just read about that bounced check fees made banks some $32 BILLION for banks last year. That can only lead one to conclude that banks, including obviously Key Bank, see this as a revenue source and the concept of customer satisfaction becomes secondary to that of greed.

At last we are free of Key Bank, Puyallup, Washington. My wife had been a loyal customer for many years with a checking account, savings account and certificates of deposits (CDs). She went to another branch and asked (she thought) to have money transferred from savings to checking. The clerk did the opposite and my wife did not check the receipts as she probably should have. She was in a drive through with people behind and felt she should move on.

That's when when the trouble began. Checks began bouncing and she began being charged for overdrafts. She used her ATM card several times including once for an approximate $5.00 meal and even used a Key Bank ATM for a cash withdrawal. Rather than alert her through the transaction machines that she was overdrawn, the bank allowed the transactions to be completed and then hit her with an overdraft charge.

When the ding letters started arriving by mail, we went to her branch where we talked to the operations supervisor. We told her the story, that it was an honest misunderstanding and expected the bank to reverse the overdraft charges especially considering the long and uncomplicated history she had with this bank. But the operations supervisor said she would have to check it out with her higher power (the bank manager). We told her we would come back in a day or two to talk personally to the manager. "Good," she responded, "that will give you a chance to get your story straight." Her attitude really ticked off my wife.

We went back a couple of days later and did talk to the manager. A couple of the fees had been waived but not all of them. We again explained how it had happened and asked that all the fees be reversed. He said that he would have to check with his higher power and that he would call us no later than the following Monday P.M. (I think we went in on a Thursday or Friday afternoon). We never heard from him.

I personally cannot figure out how a bank that stresses service can treat long term solid customers this way. Why, for example, would their own ATM allow my wife to withdraw money that she did not have in her account? Why did not someone at the bank call her when the checks started bouncing to tell her she had a problem?

My conclusion is that Key Bank (and probably other banks too) see these overdraft charges as a lucrative revenue source. And why did the manager say he would call us and then choose not to call. Service and good will to the customer be damned. No matter. We have closed the account and moved to another bank. And, if and when the subject of Key Bank comes up, we will do our best to let others know exactly how we feel about this company (in fact, we already have).

Unbelievable Theft by Overdraft Charges
By -

KeyBank charged me $123.00 on a $5.00 overdraft. I opened this account and then found out that they (1) sent bills and charged my account before the bills were sent and then overdrafted my account; (2) as a result I tried to close the account because they charged me overdraft charges for each bill and would not waive the charges; (3) I was told I could not close my account early unless I paid an early closure fee! So I left the account open until six months later when I wrote a check for $75 to close the account. I was incorrect that the balance had $75 but instead had $70; thus the $5.00 overdraft. They charged me an initial overdraft charge of $37, then $28.50 for the next three months. They called me on some anonymous number and did not leave any message until I finally answered the anonymous call and discovered just today that they charged me $123.00 on the $5.00 overdraft. They will not waive any of the fees. I just went to KeyBank and deposited the full amount. What a rip off. DO NOT USE KEYBANK~!!!!!!

Overdraft Charge Nightmare
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I was with another bank for four years and made the biggest mistake by trying Keybank. When you use debit cards with most banks, you are able to access your available balance by phone or the computer. Example, last week I made a purchase at Mcdonalds and a couple of other restraunts during the work week. I checked my account online and those charges showed pending and were deducted from the available balance. So I know where I am at right ? Well that was until this week. I trusted the available balance and used my card for some grocery shopping. My available balance was 20.00. The next evening, my account showed I had 160.00. I knew this was wrong and checked the account again in the morning. It said -2.69. I was like what in the hell. I called the bank and they said it could have been a debit that hard posted late and they adjusted the overdraft fee. I put a few bucks in to bring it current. The next evening my direct deposit of 111.00 went in as available balance. I spent 40.00 and my balance was 71.00 I checked my online account when I got home and it was -87.00. I was hit for four overdraft fees at 147.00. I called customer service and they refused to help. They said the restraint debits I had earlier that week had hard posted. I told them I was misled by their available balance on the online banking. He told me to keep a ledger. Needless to say that's the whole reason you use a debit card and online banking, so you don't need a damn ledger. Anyway I called the branch manager and she reversed all the fees except one. She tried to tell me the I needed to keep better track. The bank I was with for four years, I used my debit card like a sword and the available balance online was always correct. Never not one overdraft. I will be returning to that bank. Sorry I ever tried Key.

$40 cup of coffee
By -

First, my account was low because my direct deposit didn't go through. Not knowing this because, unlike some banks, Key refuses to send an automated email called a low balance alert. Anyway, thinking I had money I made a few small purchases on Saturday and Sunday. On Wed. morning I get a call that I need to put $$ in my account. When I looked it up online I had 8 $37 OD charges on the same day. It appears they used the old trick of taking the larger amount out first and continued. Why they waited 3 days on some is beyond me. A few charges were under $5. When I asked for a reversal of the 8 OD fees they just said it's your responsibility but we will take off 3 fees. I asked why they kept accepting the debit card transactions when the account was overdrawn and they gave a lame story about MasterCard and merchants not sending them in. There is no reason in this electronic age that they could not take notice and refuse to honor charges. Key bank sucks - I should have closed my accounts a long time ago.

Fees designed for profit not customer service oriented
By -

WASHINGTON -- Recently I have been put into a cycle of non-stop fees from Key Bank ..... I have call the 800 key 2you ph number and talked with several people ... including supervisors ,,,, and have gone into various branches ..... a couple of things to warn customers about ..... I get fees for overdraft and some may indeed be valid ... but the design of how deposits and withdrawal are done is entirely made to benefit the bank and not their customer ..... and when I asked for a document in writting of how the bank does do these transactions (which I have requested more than six times) I never get anything sent to me .... finnally a cust service person explained the process to me .... but she then ended with ..."it is at key banks descretion" .... I asked what does that mean ... she said ... that really Key Bank can deposit and withdraw from an account in whatever order they deem .... and that the guidelines set forth can be changed by Key Bank at anytime ..... I am getting fees for fees..... iam getting fees for not pending activity ..... not that day at least but it always works out that I get a fee the next day ..... typically due to the order of either deposits get posted or withdrawal come out .....

its outrageous !!!! I have gotten probably over 10 fees in past few months .... most if not all are due to posting policy ...... I have gotten a fee ..... when my end of day balance was positive ... and the next morning balance was positive ..... HOW is this possible???

I just don't get it ... and living check to check ... it is almost impossible to break this cycle ..... and the bank has no compassion ..... if I did need to use a bank ..... I wouldn't ......I just read online article that stated that banks have collected 60 BILLION in overdraft fee since the beginning of the year .....WE THE people put up money to bail out the banks this year .... and WE will be paying it back ..... I know ... key may not have gotten a bailout ..... but they are profiting from the current situation .... #1 in customer service as stated on their website ...... I DO NOT SEE IT!!!!!

Never use Key Bank
By -

Key is notorious for gouging overdraft fees for deviant reasons. For the fourth time, they have gone through and posted a transaction improperly, sending my account over. I actually deposited well over 50 dollars into my account, and had two tiny purchases of less than 10 dollars each. When I looked at my account, it said that I had 38 dollars. The next day, there were two overdraft charges for these transactions. So I called the bank. I talked to someone who had a lot of attitude issues, and basically told me that it isn't her fault I don't write everything down. Actually I do, but that is besides the point. They actually retroposted a charge to my account, which is what made it over. Even though he charge wasn't there on the 21st, on the 22nd, it miraculously shows up with a date of the 19th. I had a positive balance, and it should have posted on the 22nd, but they posted it to a date when I didn't have the money in the account for some stupid reason. When I asked about it, they swear up and down that it should have shown up on my online banking, but it didn't. I snarled at them enough to make them return one of the bank fees, but I can't think for the life of me how this is even legal. If it goes through your account on the 22nd, how can they go back and post it to the 19th? Not to mention, the online banking said that I had a positive amount in my account. How is this even possible? It seems like their online banking is meant to deceive customers into thinking they have money, but really the bank shows something completely different.

I highly recommend avoiding this bank at all costs. Even if they give you a free GPS or iPod, it is not worth the time and money you will spend on the phone fixing their mistakes.


There seems to be a lot of people indicating that I am not careful about transactions. I am very careful. I do keep really good records, and am always aware of how much I have in my account. I have had this problem with the bank before, where I know there is money in the account, and I have to go in and prove that it is actually in the account. They always reverse it, but it is still a huge problem. I think they are hoping people will think they have done something wrong, when they actually haven't. There was money in my account to cover a transaction on the 19th, as well as before.

Keybank is stealing money from you...
By -

SEATTLE, WASHINGTON -- OK here is the scenario: You have 15.30 in your account. You pay for parking at a meter using your credit card. It costs $1.50 and clears. The previous day, you get a fee charged from your school for $15.00 for setting up a tuition payment plan that you thought was paid when you signed up. This goes in as a pending transaction. When you log in the next day you see that this has happened. The "balance for processing items" is 13.80 after the 1.50 is paid but that pending transaction knocks down your available balance to -$1.20. OK you made a mistake so you are going to get an overdraft right? Nope. Two.

$15.30 - pending[$15.00] = available[$0.30]
$0.30 - $1.50 = available[-$1.20]

Key bank then overdraws you because the $1.50 was paid and overdrew your account. OK fine, its a little shady considering that the 15.00 was still pending but whatever, you made an error and you don't mind owning up to it and paying the fee.

so the next day early afternoon, you go into the bank and deposit $700. The day after that you receive ANOTHER overdraft WHAT?? So here is how they STEAL YOUR MONEY:

The next morning your "beginning balance for processing transactions" is: $13.80.

$13.80 - overdraft[$36.50] = -$22.70

Obviously they can't charge you an overdraft for an overdraft fee but then that pending transaction for $15.00 that caused that first overdraft clears...

-$22.70 - $15.00 = -$37.70

That's right, you are now charged another overdraft because the $15.00 item was paid and overdrew your account. The $700 that you deposited the same day is accounted for afterward and your balance at the end of the day is $662.30.

You get another 36.50 overdraft charge posted the next day which brings your balance to $625.80.

Here is the bottom line:

If you have 15.30 in your bank account and two purchases are made in the amount of 1.50 and 15.00, only one item is being paid that is overdrawing your account. If either item is paid alone with a balance of 15.30, the account will not be overdrawn.

Dear Keybank,

You can't charge someone an overdraft for an item being paid based on a pending transaction unless you are going to consider that pending transaction as being paid. If you do that and then charge them another overdraft merely because that pending transaction posts to the account, you are stealing.


If anyone disagrees, I would consider taking a refresher course in arrhythmic.

15.30 - 1.50 = 13.80(OK) - 15.00 = -1.20 (OD)
15.30 - 15.00 = 0.30(OK) - 1.50 = -1.20 (OD)

Only 1 overdraft possible
keybank charged 2 [$73.00]
total balance overdrawn: [$1.20]


I would like to hear your horror stories with this bank and/or any bank. I am building a website that will include all these horror stories and be talking with some lawyers and senators. We have the right as Americans to be protected from theft and reimbursed.

This happens to Americans all the time and has happened to me twice.

Please email me at with any stories, questions, comments, etc and lets try and get some power back to the people.

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