Key Bank USA Informative - Overdraft Recovery Voids Charges, Then Sends Them to a Collections Agency
BUFFALO, NEW YORK -- You are all going to love this one. I cannot believe any business could be as screwed up as this, but ---
I had a Key Bank checking account when I lived in Buffalo. I had about $1500 worth of Overdraft Protection, as a line of credit. When I moved out of state, I maxed it out.
Key Bank would not close my checking account until the line of credit was paid off. It took me a while.
In the mean time, I was being charged $5.95 per month in service charges on the checking account, which put the account into the negative, which meant that every few months Overdraft Recovery would start demanding about $75-$85 from me. There was no other activity on the account during all this time, except for my paydown of the line of credit.
Finally -- this is January 25, 2005, according to my records, I got a human being in Overdraft Recovery to zero out the service charges. Quote: "They should never have been charged in the first place." On June 6, 2005, I called Overdraft Recovery and confirmed with them that my account was marked "Nothing Owed."
Fast forward to early August, 2006. I finally get the line of credit on my Key Bank checking account paid off. After about two hours on the telephone with their customer service (but that's another story), I finally found out who to talk to, and then wrote a letter to my former branch, stating that I wished to close my checking account. There was a small credit balance, because I had slightly overpaid the line of credit. Key Bank owed me $19.00, and I requested that they send me a check.
Did they do that? Oh, no. Instead, someone somewhere at Key Bank found the old Overdraft Recovery debt -- the one Overdraft Recovery told me TWICE had been charged off and marked "Nothing Owed" -- and sent it to a collections agency. So now I am getting calls from the collections agency, who want me to pay $85 and change. Why? According to this collections agancy, I have an old debt with Key Bank Overdraft Recovery, dating back to January 2005.
Remember January 2005? That's the date Key Bank Overdraft Recovery told me I did NOT owe them money. I guess the "not" must have dropped out of the correspondence somewhere along the line.
Key Bank is an absolute nightmare. Whoever you are reading this, never, never have anything whatsoever to do with them.