Key Bank's Automatic Harassment For Overdue Accounts
BELLINGHAM, WASHINGTON -- I have been receiving phone calls twice a day for eight months from a Key Bank collector. Unfortunately, these callers do not appear to share/exchange information with each other because I find myself repeating my scenario over and over again ad nauseum.
My problem began when Paypal attempted to withdraw funds from my Key Bank account. (Somehow Paypal defaulted momentarily to a bank account I had used five years ago).
I was notified in January of 2007 of a problem which had occurred in December of 2006. I was being charged 35.00 by Key Bank for every time Paypal tried to get money from my defunct account. It was being labeled an NSF charge. Paypal tried to access my account for almost a week (twice a day) before reverting to a back-up credit card.
When I realized what was happening I contacted Paypal. They recognized they had accessed an old account, put it into writing that they made the mistake, but they were about to cover any finance charges incurred.
I was most concerned with Key Bank's response as I had informed Key Bank (Fall of 2006) to close my account and informed them I had destroyed my bank card.
When I questioned why I was receiving banking charges on a closed account, Key Bank informed me the account was 'open' and could not be closed as there was pending activity (Paypal attempts). I was informed that my account needed to be paid before they could properly close it again.
Like a fool I went ahead (March 2007) and paid the NSF charges (now over $300.00) that I had been charged by the bank for Paypal's unauthorized attempts. I paid after I realized that Key Bank was not going to accept any responsibility for this situation. I thought if I paid first, I could recoup the funds at a later date.
Imagine my surprise when I started getting telephone calls in August of 2007. My Key Bank 'delinquent account' had been forwarded to a collection agency for unpaid fees. I told them (collection) I didn't have an account and everything had been settled in March/07. I also mentioned that Key Bank probably owed me money.
I have been receiving phone calls - starting with the automated dialing and then a person comes on demanding my personal information prior to continuing.
At first I was accommodating, explaining over and over the situation. Then I became angry - refusing to give out information over the phone. I demanded detailed bank statements as I hadn't received a bank statement since November of 2006. The statements I received show no activity aside from a finance charge that keeps growing.
It appears that the amount I paid in March did not convert into the full amount Key Bank felt I owed them. (I paid using Canadian funds via certified cheque which included the conversion amount for the date). My deposit slip is marked 'paid in full/account closed' by the cashier as I asked her to. Now the bank is stating that after the conversion, I still owed over $13.00.
To date, I now owe close to $400.00 (according to Key Bank and collectors).
The other day, while sorting out my files, I came across my original receipt from last year's payment. Yes! (People - a reminder to not throw out any proof of payment.)
When I informed Key Bank I had my proof of payment and even felt that they probably owed me, they want ME to send them the receipt and statement (original please) for that month/time period. I am to send copies to my original bank, the collectors office, as well as Key Bank's head office. And I do not want to!
Even if I do this, I will still have a negative credit rating because of this incident.
My question is... Shouldn't they already have my payment on file? Why do I have to run around photocopying, register mailing Key Bank to prove I don't owe them money. Why aren't they sending me information to prove I DO owe them money?
Can this American bad credit listing come across the border and register on the Canadian bad credit listings? I have managed for all this time not to incur bad debt, and now this?
How can collectors not have anything on their computer to refer to or answer questions with? (For example, when I asked them to tell me the date of my last Key Bank transaction - to prove I wasn't using the account at the time of the Paypal incident.) They couldn't tell me anything about my banking activity as they didn't have any information.
Finally, how does Key Bank justify this rabid dog response to collecting for finance charges? Is this really Key Bank or is this some collection agency? Is it even advisable to give any personal information (they won't continue with their call if I don't give personal information and they become abusive if I hesitate.) I don't even answer their questions anymore - they're the ones who called me so why should I give out my social security number?
My credit rating has its first official 'blemish' and Key Bank continues with their twice a day calls (as soon as I hear the automated click I hang up.) They have spent more in long distance calls than they ever would have collected for what 'I owe'.