Key Bank USA Complaint - Predatory Overlimit Fees Imposed By Key Bank - Does Key Bank Have Cash Flow Issues?
AUBURN, WASHINGTON -- I had an overdraft situation caused when a creditor posted a scheduled payment one day early onto our Key Bank checking account. I discovered the action on a routine internet access of the account early the next day.
After the initial shock and a couple hours later that morning, I showed up at Key Bank with almost $2,300, with some $800 in cash, in a good faith effort to correct the balance and stop the fiscal bleeding. A lot of good that did!
That day, 7 overlimit charges showed up. The branch manager (Auburn, WA branch on Auburn Avenue) refunded 3 of those charges. She noted that two to six more charges would be showing up. Given her tone, I assumed some corrective action would be undertaken. I was wrong.
Those 6 other charges showed up and stayed. I called in to see if anything was going to be done. No answer for a week. I dropped off a written request for consideration. I was contacted two days later and told that the three refunded (out of 13) was all that was going to be handled. So, because Bank of America drew one day early, Key Bank rewarded my efforts to be fiscally responsible and correct by taking $365 and keeping it. Bank of America was kind enough to give us a $98 credit on our line of credit account with them regarding this fiasco.
Key Bank's pending deposit policy is one of the most egregious in the area and probably is used to generate a large number of fees.
Even Bank of America wasn't this bad when we boobooed our commercial account (only one charge was kept out of six or seven charged in that instance).
We have been customers at this particular branch of Key Bank in its various forms for 24 years, but I believe that it is time to move our personal checking to a local credit union that is a lot more consumer oriented.
I AM SUSPECTING THAT KEY BANK IS HAVING CASH FLOW ISSUES AND IS GRABBING FEES WHEREVER AND WHENEVER IT CAN. If you see this and you have a Key Bank account, move your money to an institution that is better capitalized and consumer friendly. Key Bank definitely lacks in that category!