Consumer complaint received 2021-02-03
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: KEYCORP (OR)

My bank account opened with Key Bank in XXXX, OR had initially been opened with the option for overdraft protection being denied. This meaning that we did not want our account to be able to be overdrafted as to not incur extra fees. Meaning if we did not have the money to pay for something we did not want the transaction to be approved. This was all in an attempt to save money by not spending so much in extra fees. This tactic was seemingly working quite well until, one day our account balance was low and there was a charge attemped on the account. This charge should not have been allowed because we specifically stated we didn't want that to happen and we opted out of that option, yet the charge was still allowed. We were overdrafted by {$0.00} by that charge and subsequently charged {$38.00} for an overdraft charge. It would be one thing if this were the only charge like that but, it wasn't. Over the next several weeks Key Bank allowed our account to be overdrafter continuously to the point where we now have a negetive balance around $ XXXX. They continuously let charges through after we were so far negetive in the account and on every charge they tacked on an overdraft fee of {$38.00}. We attemtped to resolve this issue with Key bank but, have only been told that we don't have overdraft protection. We have been told that because these charges were automatic payments set up on recuring basis that they are allowed to be charged and taken from the account even with a negative balance. I may not be in my XXXX 's but I wasn't born yesterday. I have had several bank accounts with several banks and not a single one of them has ever let anything like this happen, even if they allowed overdrafts to occur. Not only is this tactic unethicle and immoral, this is a form of class XXXX which is against every state and federal law that also currently governs other forms of XXXX. Here is why this is illigal and should be acted upon immediately and corrected to the point where this practice is abolished. When I called Key bank to see how I could stop these charges I was told that they can not be stopped unless the account is closed. When I asked to close the account I was told I could not do so while my account has a negative balance. Key bank clearly can see I can not pay these charges because they can see everytihng inside my bank account. So not allowing me to stop charges at all and not allowing me to close the account because I couldn't afford to is against federal XXXX laws. They stood to gain from my situation in an unfair way. Moreover, I know they use funds deposited into their bank to make sizable high risk investments on XXXX XXXX as to turn a quick profit and essentially obtain a loan from me with no interest paid to me, the lender. It is only in their best interest NOT mine that they would allow these charges to continue and continue to charge extra overdraft charges as to inflate their bottom line. Making it easier to invest more money in these high risk investments. My negative account looks as though it is money that they are owed or that they have. When in reality it is neither. By using my financial situation against me to their advantage they are not acting in good faith and thus violating FDIC standards for financial institutions. I have attempted to reason with Key bank as to have some of these fees adjusted or waived and I have completely lost hope after repeatedly being told it was not something that could be done. Key bank has finally closed this account, bringing an end to the charges but, now we are stuck with a bill to them that is over {$2000.00}. Take a minute to let that sink in ... an overdraft of {$0.00} turned in to a bill of over {$2000.00} now having to be paid to the very people that were in control of whether those charges were even allowed to happen in the first place. If this is not XXXX XXXXt its finest I don't know what is. I call for a formal and immediate investigation of this bank and subsequent banks that participate in the same tactics. I will be filling motions with the SEC and FDIC regarding this exact tactic. I expect the CFPB, as a consumer protection advocate, to immediately act upon this complaint. I look forward to your response and action on this serious matter.