Consumer complaint received 2019-01-12
Company: KEYCORP
State: ID
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 have been a loyal customer at KeyBank for over 2 years. I had fallen upon some hard times recently and ended up getting my first checking account overdraft fee of {$32.00} about 2 months ago. However, there was a deposit already pending on the same date and KeyBank removed the overdraft fee, stating that it was a 'one-time courtesy waiver ', even though the deposit was clearing showing as pending.

Then, about 2 weeks ago, due to an error on the part of my internet service provider, they overcharged me through auto-pay, which overdrafted my account and was charged a {$32.00} overdraft fee. However, there was a small debit of {$10.00} and {$2.00} for other expenses, for which I was hit with " Tier II Service Charges '' of {$37.00} each. Frustrated, I contacted KeyBank and spoke with a Supervisor. After much discussion, the Supervisor refunded two of the three " Tier II Service Charges '' ; however, I still had to pay the {$32.00} overdraft fee from the internet service provider auto-pay, as well as the third remaining {$37.00} in " Tier II Service Charge '' for an auto-pay electric bill that added to the overdraft. The Supervisor explained that the first overdraft charge is {$32.00}, but all future overdraft fees are assessed at {$37.00} each. This is absolutely unjust, immoral, unethical and obscene! What justifies a {$5.00} increase for each overdraft fee? 

Additionally, the problem with the fees is that there was also a bank transfer pending long before those charges. This is evidenced by two small confirmation deposits made by the issuing bank to confirm my account, as it shows up on my statement several days prior to the fees. However, the Supervisor denied this fact and stated that the bank transfer only happened after the fees were assessed, even though I have screenshots showing the small confirmation deposits. I was only waiting on KeyBank to  finalize the deposit. Instead, they were all too happy to assess {$110.00} in overdraft charges when they knew that a {$300.00} deposit only needed to be finalized into my account. 

Nevertheless, my account was back in the positive after the bank transfer occurred. I kept an eye on my account, which showed no other pending charges and still a positive balance. However, upon receiving my direct deposit pay yesterday, I was again hammered with three {$37.00} Tier II Service Charges ( totaling {$110.00} ) for debits that allegedly placed my account into negative status the day prior to the deposit, even though my account did not reflect any pending charges that would place my account into negative status. Again, I am faced with having to pay {$110.00} in " Tier II Service Charges '' that are unnecessary, and quite frankly, robbery/theft of my money. I have  attached screenshots of the fees, along with when they were assessed, so that you may see for yourselves the heinous business practices of this banking institution.

This is absolutely criminal what KeyBank is doing by cunningly holding charges until the day prior to a deposit ( intentionally causing the account to be placed into negative status ) and then assessing fees on them, even though the account never reflected any charges pending even unto the day of the deposit. It is obscene and something MUST be done to prevent such rampant theft by institutions that people place their trust in to handle their finances.

Company response to consumer: Closed with explanation