Consumer complaint received 2019-04-23
Company: KEYCORP
State: CA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem caused by your funds being low
Sub-issue: Overdrafts and overdraft fees

Complaint:
I had contacted the CFPB once before about Keybank 's obscene overdraft charges ; however, they are at it again. I had let the last complaint go, as they ended up refunding me the overdraft charges, as they rightfully should have done in the first place because they had actually charged them in error. But, it took me complaining to the CFPB in order for them to actually do so. Thank you for helping me with that matter. 

However, recently I used XXXX for local transportation services, as I moved from XXXX back to live with family in XXXX to attend school full time. I hadn't realized that I hadn't set up my preferred XXXX payment method to be my Keybank credit card, which they had recently sent me a new one ; therefore, it hit my checking account as the backup payment while the balance was low. The balance was low because I'd opened up a Keybank checking account while I was still in XXXX. When I moved back to XXXX just 3 weeks ago, I was letting the last bills auto-deduct and then I planned to close the Keybank accounts because they do not have any branches in XXXX. However, much to my shock, I logged in online today to check my balance and saw 5 overdraft charges of {$37.00} each! 

Just 2 days ago, they had assessed a {$37.00} overdraft fee for my last XXXX XXXX bill that was auto-deducted from my account ; however, they refunded it, which I was grateful for. It only brought my account balance to - {$6.00}, so my family transferred {$60.00} to that account a couple of days ago, which should finalize tomorrow. However, it will not be enough to cover the now - {$210.00} negative balance, mostly from the {$180.00} in overdraft fees. 

At the same time that I had called Keybank 2 days ago, I had requested a safety feature that most banks offer, which is to decline any charges that would place an account into negative status, but was told that my free checking account does not have such a feature, and in order to have such a safety feature, that I need to open a new checking account, but will lose the ability to write checks for that account. WHAT?!! That is completely absurd! Then what is the point of having that checking account? It would not go into negative balance status anyway. I feel that Keybank WANTS people to overdraft their account on purpose, so that they can charge obscene fees for each such transaction. As I'll show later, they also wait until the balance is low to finalize charges that should have hit the account several days prior, so that they can tack on overdraft charges. They did this last time too! I called Keybank to see if they would refund the {$180.00} in " Tier 2 Overdraft Item Charges, '' but was told to contact XXXX, instead. 

Upon contacting XXXX, I was told that they can not refund those XXXX charges to my Keybank checking account and to charge the credit card, instead. I was then told to contact XXXX to try to swap payment methods for those charges. However, upon contacting the XXXX  number provided by XXXX, I found that XXXX does not have a customer service line where I can actually speak with a representative. That number [ ( XXXX XXXX XXXX ] is only answered by an automated message that tells you to go online, instead. However, you can not reach anyone online, either! I feel like I am being given the runaround by all of these businesses. 

However, what is most obscene is that each of the 5 XXXX charges were under {$9.00}, with 2 being {$2.00} and {$3.00}. To have to pay a {$37.00} overdraft charge for each of those XXXX charges is absolutely outrageous! Something needs to be done about these grossly unethical and unnecessary overdraft charges. I can not understand how a bank can justify charging a {$37.00} overdraft fee for a {$2.00} charge, when they refuse to offer the safety feature of declining payment if funds are low, like most other banks do! 

This time, I am going to fight these charges tooth and nail, because these charges are absolutely unnecessary and unethical, especially considering that I have been a loyal customer for over 3 years, and only recently have gotten such charges, having been unemployed or underemployed, which warranted my relocation back to stay with family and go to school full time. 

As mentioned before, you will also notice in the XXXX screenshot that many of the XXXX charges were charged several days prior, when the account was actually in a positive balance. Keybank purposely waits until there is a low balance in order to then assess charges that should have been assessed days ago, sometimes up to a week prior, so that they can then pile on {$37.00} overdraft charges on each of them. Those charges did not clear like they should have on the same day, or even the next day, or even the day after as they have done with all of my other banks in the past! This is unethical and wrong! When will Keybank stop doing these things to their customers?! It is a good thing that I took and sent screenshots to the CFPB last time because they are also in the habit of changing the dates of those charges after a few days to make it appear more recent, as I found out later. This is an incredibly shady bank that routinely practices unethical behavior. 

Please help me, as it is not easy to go up against powerful banks that do whatever they want with your money. We need to set up some kind of protection for the little people, who end up with the short end of the stick. There is also the {$60.00} money transfer from family pending for the past couple of days that would have brought up my account balance a bit from the - {$6.00} balance that I'd noted earlier, as well as be just enough to pay off the {$27.00} balance left on my Keybank credit card that is also attached to my Keybank checking account, so that I could close the Keybank checking account and never have to deal with this nightmare bank ever again. But now, even that {$60.00} transfer will not cover the - {$210.00} negative balance on my account, largely due to {$180.00} in overdraft fees. Please help! Thank you in advance. You've been very helpful with my last case against them. Also, as you can see, I'm not in the habit of filing numerous complaints, but feel that these situations warranted me reaching out to the CFPB. I don't know who else will help.

Company response to consumer: Closed with explanation