Key Bank USA Complaint - Overdraft Fees
FINDLAY, OHIO -- BEWARE OF KEYBANK! I have been a customer with this bank for almost four years now. I have accumulated overdraft fees here and there and have probably deserved them. So I quietly paid them and moved on with my life. Recently I had a schooling in Key's positively predatory fee policy. Due to a lack of communication, we overdrew our account by approximately $70.
Fortunately I noticed it that morning and got money out of another account to cover the difference. Well, I discussed the issue with the teller and asked if I put in $200 cash deposit on that same day whether I would avoid the fees. I was told yes. Apparently she was not aware that Key's policy is to apply transactions as they come in. Consequently, I examine my account the following morning and see that I have accrued several fees that I was told that my prompt action had avoided. Again I was in the negative. Well, I was mad and I went to see the bank manager. (you pay $40 for a candy bar). He was trying to be nice but obviously felt that it was my fault for being an idiot.
Well, after discussing the matter with him he informed me that the teller should have never have told me that I would be okay. As he explained it, nobody really knows what transactions may be in the pipeline or how they would be processed and could cause further fees. Well, I told him that I knew what was coming in (another 5 transactions) and that if I had been given the proper information on day one, there would have been enough money to cover the incoming transactions plus the fees. He eventually relented and credited the fees for the misinformation I had received from the teller and told me that it would prevent any further fees from occurring (unless I had any outstanding that I didn't tell him about).
I also tried to open a savings account linked to the checking account for overdraft protection. They don't have one. All they have is the credit based version that still is expensive to use and which they refuse to give me. Great, I went home, mission accomplished. I check the account the next day and he did as he said and had credited the account but not before they added more fees to negate the positive credit! And the incoming transactions generated even more fees. Another call to the online reps and the bank manager proved fruitless. Frustrated I have given up trying to work with them. So Iwas stuck with just under $800 in fees.
What I have learned is that Key's policies (and probably quite a few other banks) are very skewed to making lots of money through these punitive fees off those middle and lower middle income class folks who live paycheck to paycheck or suffer from credit deficiencies. Instead of creating policies and products that make money in a positive way and create corporate goodwill like other industries, Key has decided to take advantage of those least able to defend themselves, and in my eyes, with no regard for their corporate image. I also found out that their employees do not have enough knowledge about the very core of their business to give proper information that their customers can depend on to make informed decisions. Matter of fact, if you ask them, they will give some noncommittal BS that does not give any real direction to resolve the issue and leaves you guessing how bad they are going to hit you!
As for myself will be more vigilant about my finances but I will be more vigilant about them at a new bank. And I tell you what, I WILL support reform measures in the Banking Industry.