Key Bank USA Complaint - Key Bank: $91 fee for $13 overdraft! Beware!
ANCHORAGE, ALASKA -- Key Bank charges $27 for each returned item. This fee is a little high, but most people are aware of it before opening an account.
What you may be unaware of is what happened to me recently.
On January 18, 2005, 14 items were posted to my account. The amounts of these items were:
The total amount that my account was overdrawn after these amounts were added up came to $13.71. Notice on the list that there is a $20 item-- a total of $6.30 over the amount my account was short. A reasonable individual working for the bank would add the $27 overdraft fee to the overdrawn $20.01 item. Yes, I would have paid $47 for a $20 gas fill-up, but that's what happens. I have to accept that and try to not let it happen again.
But that's NOT what Key Bank did.
Instead, they added up all charges excluding the $6.45, $5.55, and $2.34 charges, because these totaled $14.34-- over the $13.71 that my account was short.
To each of the three charges, a $27 overdraft fee was added, as well as a total of $10.75 in additional excessive overdraft processing fees. The penalty for being $13.71 overdrawn: $91.75!!!
When speaking with customer service representatives, I was told that this could not be reversed because "internal procedures" prohibit doing so and that their decision was final. I was also told that I would have to outside of Key Bank if I wanted to get the matter resolved to my satisfaction.
In my opinion, a service fee on overdrafts is reasonable. However, $91.75 is excessive for the small amount that my account was overdrawn-- particularly when in the three years I have banked with Key Bank, I have overdrawn only once before. I have a long and reputable history of maintaining a good account with this bank.
When looking at the math, one can clearly see that Key Bank employees who process the posting of charges to an account will add up the numbers in a way that penalizes the consumer the most. This, in my assumption, is the "internal proccedure" that the customer service representative was unable to disclose to me.
I will be closing my account with Key Bank and I would never recommend that anyone use this bank.