MIDDLETOWN NY -- I've paid nearly $4,000 in overdraft fees to Keybank. My life is my organization, to build concrete homes in the Congo for those in need. My business checking account has constantly been attacked by this bank, when I make deposits it seems as if they hold my money to cause overdraft fees.
Every time I call customer service I am told my fees cannot be reimbursed because they have already reimbursed some, but what they do is give back the smallest fee amounts possible. I explain the amount of pain I'm in because they continue to do this, I need to have 2 teeth pulled but they show no remorse, already have gone through 5 tubes of Orajel. The greed they display is pure. I'm considering switching to a credit union.
BUFFALO, NEW YORK -- This entire bank is a joke. I had been charged an overdraft fee and when called they spoke down to me as if I was just some jerk who always ran out of money. I had funds in there by the way. The very next day. I then had the overdraft fee refunded back, after being spoken to like a child and told that I need to set up overdraft protection to make sure this didn't happen in the future. I said, "NO, I don't need to do anything, I don't overdraft my account like a teenager regularly."
Then I get charged AGAIN when funds were directly deposited and there was no transactions posted until this morning along with the direct deposit. I called and spoke to someone else named Sherri who was just as condescending and then told I was not getting a refund of that money. On top of all that they charge you fees for everything else. You go shop in Canada? You're getting charged whatever they feel like charging you because it's never the same. This is the worst bank I've ever been with. Don't bother wasting your time or money!
VENETA, OREGON -- I wrote a check for $500 on my Key account 9/23/15 and deposited it in Oregon Community CU to cover auto deductions there without first checking to make sure my paycheck was deposited. I then found my employee decided to change the payroll date to 9/25/15. On 9/25/15 I checked my Key Bank account and found the payroll was deposited at 12:01 a.m.. and there was a hold for the $500 check. I was relieved as it appeared I would not get a bounced check fee.
The next day I received a returned check charge of $37 from Key. Not wanting to receive bounced check charged at OCCU I took the $500 out of Key and deposited them in OCCU. I left enough funds in the account to pay the return check charge and decided to close my Key account because they hit me with fees from the left & right. Today I received a message for a service fee for overdraft because they then accepted the check they originally returned and I am now overdrawn $500.
Why did they return the check for what they say are NSF on 9/25/15 even though they had a hold on the funds in my account and then accept it and charge me overdraft fees on 9/29/15, the date I closed the acct? Now they refuse to close the account because I owe them funds and refuse to waive the fees. They said they can decide to return or accept the deposit up to three times. I believe everyone is screwed because they pull the strings.
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.
REDMOND, WASHINGTON -- I found the My3cents.com 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:
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 My3cents.com 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.
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?
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, 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).
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]. KeyBank then overdraws you because the $1.50 was paid and overdrew your account. OK fine, it's 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.
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. KEYBANK, YOU ARE STEALING MONEY FROM PEOPLE.
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]
KEYBANK IS STEALING YOUR MONEY
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 let's try and get some power back to the people.
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 Mcdonald's and a couple of other restaurants 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.
WASHINGTON -- Recently I have been put into a cycle of non-stop fees from KeyBank..... I have call the 800 key to your 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 writing of how the bank does these transactions (which I have requested more than six times), I never get anything sent to me....
Finally a cust. service person explained the process to me.... But she then ended with ..."it is at KeyBank's discretion".... I asked what does that mean... She said ... that really KeyBank can deposit and withdraw from an account in whatever order they deem.... and that the guidelines set forth can be changed by KeyBank at anytime..... I am getting fees for fees..... I am 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 .....
It's 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!!!!!
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 retro-posted a charge to my account, which is what made it over. Even though the 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.
****UPDATE*** 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.