Consumer complaint received 2017-07-18
Company: KEYCORP
State: OH
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Fee problem

Complaint:
On   XXXX    XXXX  2017, I had   XXXX   pending transactions. The second transaction would cause my account to be overdrawn by {$0.00}. I had previously been told that when pending transaction will cause the account to overdraw, a deposit needs made by  XXXX . I made a cash deposit before the cut off time on  XX/XX/XXXX . This gave me an end of day balance of {$0.00}. However, on  XX/XX/XXXX , I was still assessed a {$39.00} fee. Yes, I was charged {$39.00} for a   XXXX   XXXX   overdraw. The supervisor  XXXX  - made an exception to the policy and provided me with a {$39.00} credit today. The issue was caused by Key Bank 's posting order. Because the transaction had been made in a prior business day than the deposit, the transactions posted first - even though they had not posted at the time of the cash deposit. The supervisor confirmed, had the deposit been made a day prior, or the transactions posted a day later, the deposit would have prevented a fee. However, because the transactions and the deposit posted on the same day - a fee was assessed.
I had a similar issue in  XXXX . On  XX/XX/XXXX , I had a transaction overdraw my account by {$0.00}. I had   XXXX    additional pending transactions that would have overdrawn my account by a total of {$16.00}. On XX/XX/XXXX , the pending transactions had not yet posted and I had not received a fee. Before the required cut off time, I made a cash deposit of {$20.00}. This gave me a positive balance of {$3.00}. However, at end of day on XX/XX/XXXX , I was charged a fee for the prior, posted transaction of {$39.00}. This caused my {$20.00} deposit to not be enough and then I was charged  XXXX  additional fees of {$39.00} ( for a {$10.00} transaction and a {$5.00} transaction. ) Three days later on  XX/XX/XXXX , I was charged a " Recurring Overdraft Service Charge '' of {$28.00}. So, essentially, for overdrawing my account {$0.00} and due to Key Bank 's posting order, I received a total of {$140.00} in fees. I made a deposit to cover the two pending transactions. When I viewed my account, there was not a fee yet. At the time of my deposit, I was provided with a balance of {$3.00} ( POSITIVE ). Yet, due the posting order ... The fee posted first, making my deposit insufficient for the other  XXXX  transactions and causing additional fees.
I understand that I may not be the best customer. I understand why overdraft fees are in place. And when the fees are fair and the posting order not deceptive, I pay them. As much as I try to avoid them, sometimes life gets in the way. I 've definitely paid more fees than I 've had waived. However, I think we can all agree that a {$39.00} fee for a {$0.00} overdraw is unfair. The punishment does not fit the " crime. '' I think we all agree that {$140.00} for a {$0.00} error is unfair. The punishment does not fit the " crime. '' The posting order that key bank uses, in my opinion, is designed to cause more fees to customers. This, in my opinion, is an unfair practice.

Company response to consumer: Closed with monetary relief