Consumer complaint received 2020-11-04
Company: KEYCORP
State: ME
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
Please see the below letter that I sent to Keybank in regards to the way they handled my checking account : XX/XX/XXXX KeyCorp Corporate Headquarters XXXX XXXX XXXX XXXX, OH XXXX Dear KeyBank Corporate Headquarters, As of this date, KeyBank has closed my account and has Charge Off {$190.00} in order to do so. I have been trying to put together a flow sheet to describe the unfair charges, the unfair order and what Keybank should pay back to me and probably to other individuals. The problem this has been late is due to the fact that XXXX was just a terrible month for my family. The beginning started with my mother being admitted to the hospital, and then I was in a car accident that ended up totaling my car, three days after that, my mother passed away in South Carolina in which I went to spend the whole month of XXXX with my father in getting things organized and fixed around his home. 

I am writing now in regards to unfair charges that KeyBank puts against their clients. I am one of those clients that have been charged such an unbelievable amount of these charges/fees. I was constantly getting the letters from one of your offices, Keybank National Association, Mr. XXXX XXXX, XXXX. XXXX XXXX, XXXX, OH XXXX, informing me of these overdrafts and giving me some things that I can do to help prevent me from more overdrafts. I understand that I chose to have KeyBank pay for any overdrafts on ATM transactions and everyday debit card purchases. Yet in reading the exact statement from this authorization from KeyBank it states the following : By choosing YES for overdraft consent, you authorize KeyBank to pay overdrafts on ATM transactions and everyday debit card purchases. KeyBank then pays overdrafts on checks, automatic bill payments on checks, automatic bill payments and recurring debit card transactions at its discretion. 
I truly do not need to tell you what it states if I was to choose NO, as it would almost be identical but KeyBank has the decision to pay or not pay on the transaction. Either way, they charge the customer if they decide to pay or not to pay. Then there is the Recurring Overdraft Charge that seems to appear no matter how many days it has been. Some happened within one day, four days, or even six days. 

On XX/XX/XXXX, I opened my account with KeyBank. I was unsure about this but decided with the {$400.00} New Account Offer, I would give it a try. I did keep my XXXX XXXX XXXX  open just in case of the automatic deposits not going through correctly. Things started off just fine until XX/XX/XXXX when a direct withdrawal transaction from XXXX went through my account causing an overdraft. This must have been my misunderstanding, as I believed that any direct withdrawal from a credit card/debit card would not be able to go through if there werent any funds available. I knew that I had overdraft protection on my check but couldnt find where there was anything stating how direct withdrawals would be paid. Like a credit card, I thought if funds werent on it then it would be denied. 

Then a check went through on XX/XX/XXXX that I did write causing an overdraft that I did expect. It all begin to start then for me with charges from KeyBank. On XX/XX/XXXX, I had more transactions go through causing more fees against my account. Inquiry fee of {$3.00}, Withdrawal fee of {$9.00}, the Overdraft Item Charge of {$38.00} ( this charge would be refunded back into my account on XX/XX/XXXX ). On XX/XX/XXXX when another direct withdrawal from the same company XXXX, tried to go through my account again, this should have automatically been declined through the system just like any other credit card. I was charged the {$38.00} Overdraft Item Charge. What I didnt expect to be charged was the {$28.00} Recurring Overdraft Service Charge. This charge is unreasonable as it was charged against which day? The XXXX would only be four days!! Seriously!! This type of transaction was to happen again on XX/XX/XXXX, my fault again for the overdraft item charge but unreasonable recurring overdraft service charge of only six days charged on the XXXX of XX/XX/XXXX and yes my fault again XX/XX/XXXX for the overdraft item but another unreasonable recurring overdraft service charge of only four days on XX/XX/XXXX!! The biggest thing about my account is on XX/XX/XXXX I am charged an Overdraft Item Charge but there isnt a reason for this charge!!! I looked and could not find anything that was attached to this transaction. The other thing I feel is so unfair is for you to return a check or anything and charge the fee, then turn around and do it again. Isnt this considered double dipping? Another unfair advantage for banking customers!! 

So the worst transaction that KeyBank pulled on me, and the main reason that lead me to this three page letter, was on XX/XX/XXXX. I looked up my account to make sure that I had funds available as I always do. I went online to my XXXX account to make some purchases for XXXX gifts. The next day when I looked at my account, to make sure that my deposit was there, I could not believe that KeyBank changed the way the account was handled. KeyBank entered the XXXX transactions first. This meant that my account would be considered overdrawn for all six purchases that I did. All those transactions made were less than the overdraft charges. Another funny thing when you look at the account, on XX/XX/XXXX, I was charged the Overdraft Item Charge before one of the transactions went through. That is absolutely wrong!! A bank can not charge a customer an overdraft fee before any transaction is overdrawn!! 

On XX/XX/XXXX I looked at my account which showed me that I had money in my account. It provided me with money so I could make the small purchases that I wanted to do. I was in disbelief when I checked my account on XX/XX/XXXX to see that Keybank decided to change things up and do all the XXXX transaction first and then add my deposit. This is unfair banking practices and should not be allowed by any bank, state or federal!! 

It was from this transaction date that my history for overdrawn on my account would be impossible to overcome. I would be forced to write checks to the XXXX for food, pay bills with checks even though I would be overdrawn. I had no choice but to pay my property tax foreclosure bill back in XXXX or I would lose the house. It was from this mess that I decided to give up and go back to XXXX XXXX XXXX. It is from all of this that I am sitting here for days trying to figure out if KeyBank was right in charging these fees but I can not see logic to them. KeyBank is wrong and should not be allowed to handle transactions in this manner. This is why I am enclosing my spreadsheet that shows the proper handling of transactions and the balance that I should have now on this date, XX/XX/XXXX. This is the amount that I want to see back in my account. 

As a single mom out twin girls I was left with multiple choices on what I needed to pay and what I needed to buy. Most times I did need to make my account overdrawn as my bills were falling behind and we were running out of food. There seemed to be no help out there for me and my girls as every place I went told me that I was over the income. Not one place would look at what I had to pay out!! My husband walked out on me and the girls in XXXX. In doing so, he left me with two years of back taxes. Every year, yes this year too, I am forced to come up with the {$2000.00} before the end of XXXX so that my home doesnt foreclose! Not one place looks at the fact that I have to pay {$840.00} plus another {$190.00} for my house payment. That it is a private sale and I am paying the guy at an 8 % interest rate. I am struggling to keep that payment going. Not one place will offer me a house loan so that I can pay this greedy man off. My ex-husband left me with a {$2000.00} sewer bill, a car that is broken and so much more that no one looks at what I am paying out. So yes, there were those times that the overdraft occurred at the fault of me. I acknowledged these as mentioned above. 

KeyBank has made money off from the little people way to long and it isnt fair. They make enough money from loans that they have given people. Why is this fair to them? This is why I am sending this letter to you asking for my money back. Asking for KeyBank to make good on their poor customer service, poor transaction fees, and poor banking procedures! I am enclosing a copy of how KeyBank handled all the transactions that occurred from the time I opened my account until now. I am also enclosing a copy of all the transactions with the way I feel KeyBank should have handled my account!!! I have added highlighted notations to explain why these transactions should have been done in this manner. No bank should be allowed to do what KeyBank s done to me just to make money on those who are low income/poor. 

I must also tell you that just recently, after having a XXXX  balance for some time, I was charged a {$7.00} on XX/XX/XXXX. This came as a shock to me as I couldnt believe my eyes to see a negative {$7.00}. I must admit I was so angry that I just decided to use my Keybank card for another transaction and write a check to get food. That is how angry I was! After having my account almost closed and this happened!! 

I am hoping that this letter gets to the proper individual and that this matter can be handled promptly. I am sending a copy of this letter and spreadsheet to the XXXX  XXXX XXXX XXXX XXXX and the Consumer Financial Protection Bureau. Please see that KeyBank was wrong and refund my money back in the amount of {$2800.00}. Even before KeyBank closed my account, the {$190.00} that they considered Charge Off is incorrect!! I do not want that reported to any other banks, credit unions or credit reporting agencies. Keybank or any bank should not be allowed to do these charges the way that this was handled all because Keybank decided not to put my deposit before my transactions on XX/XX/XXXX. Even then if you were to look at column # 2 I would have had a positive account balance and Keybank would still owe me money.

Company response to consumer: Closed with monetary relief