Consumer complaint received 2018-04-07
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: KEYCORP (NY)

In a matter of 8 days Key bank has charged me 5 separate overdraft fees each valued at {$38.00} for a total of {$190.00}. 

These fees make it almost impossible to regain a positive balance therefore I continue to incur overdraft fees. 

The overdraft fee total is approximately 2 times the amount total for the transactions that overdrafted my account. 

From XX/XX/XXXX to XX/XX/XXXX I made 10 deposits totalling {$380.00}. With a beginning balance of {$24.00}, my total positive balance for this time period equals {$400.00}. 

From XX/XX/XXXX to XX/XX/XXXX I made 18 withdrawals totalling {$320.00}. The withdrawal total subtracted from the deposit total accounts for a {$78.00} surplus. As of XX/XX/XXXX the balance reflected on my account is $ XXXX. 

If you subtract the total for overdraft fees {$190.00} ( minus one installment of {$38.00} which they refunded me as a " courtesy '' - so {$150.00} ) from the surplus balance of {$78.00}, you get my current balance of $ XXXX. 

According to the information on my account I have not consented to overdraft services so ultimately purchases made with insufficient funds should be denied at point of sale. According to Keybank 's mobile app, on XX/XX/XXXX the date of the initial overdraft fee for this 8 day period, I began with {$24.00} balance, deposited {$8.00}, withdrew $ XXXX and $ XXXX for an end balance of {$18.00}. 
According to my own records I only had an available balance of {$2.00} at the beginning of that day because on XX/XX/XXXX at XXXX I made a charge for XXXX in the amount of {$15.00} which had yet to reflect onto my account. 

In real time, not according to what is reflected on the mobile app, on XX/XX/XXXX I made a deposit through XXXX for {$66.00} at XXXX. Giving me a new balance of {$69.00}. ( Or, according to the mobile app I had {$84.00}. ) At XXXX I used my debit card at XXXX XXXX XXXX for a charge of $ XXXX. At XXXX I made a deposit of {$6.00}. At XXXX I made two charges at XXXX XXXX for $ XXXX And $ XXXX. Leaving me with a balance of {$39.00} or {$55.00} according to the mobile app. Which was great because I knew the next day I would have to charge $ XXXX for my phone bill, which would leave me a positive {$11.00} balance until my next deposit ; my paycheck. 

On the morning of XX/XX/XXXX I logged on to my mobile bank account and discovered that my account was overdrawn. This did not make sense to me and it was not specified which transaction had cause the overdraft. I had enough to cover the XXXX from XX/XX/XXXX. And anything else should have been denied at the point of sale if I did not have a positive balance. But according to the mobile app as well as my records I had a positive balance on XX/XX/XXXX due to my deposits through XXXX. I would not have made any transactions if I had known they would process in such a way that would overdraft my account. 

At XXXX on XX/XX/XXXX I contacted XXXX and explained my confusion. I was told that the transaction for XXXX XXXX ( $ XXXX ) is what overdrew my account. They proceeded to refund the charge at my request as what they called a " courtesy. '' On XX/XX/XXXX at about XXXX I went in to the nearest Keybank branch to speak with someone in person about the 4 overdraft charges I had received since that initial charge, all assumed to be my fault. She very vaguely attempted to explain the methods by which transactions are processed by Keybank. And suggested I try a hassle free account, opt for Overdraft Protection, or keep a physical ledger. But would not help me understand exactly why I had received the overdraft fees. And said there was nothing that could be done because I had already received my courtesy fee forgiveness. 

I then decided to call the XXXX number again to get more information. I got a similar explanation. It took me calling yet another time for me to reach someone willing to walk me through the transactions. This is where I learned I was given misinformation and that XXXX XXXX is not what overdrew my account on XX/XX/XXXX but it was XXXX XXXX instead. No one could give me a clear answer as to why, if the mobile app said I had a positive balance, I was overdrafted. And if that wasn't really the case ; if I really did not have the funds to make the purchase, why was I not denied at the point of sale? 

The customer service representative who attempted to explain to me in detail the reason for the overdraft fees then transferred me to another representative to discuss things further. She was very helpful and after looking at my account told me that she would talk with her superviser and get back to me. I have her name, number, and a voicemail for reference. 

As of the close of business XX/XX/XXXX I was not able to speak with that representative again as when I returned her call she was helping another customer. I spoke with another representative whose name and number I also have, who helped explain things again and offered to help me deal with one transaction from XXXX, XX/XX/XXXX for $ XXXX that was merchant error on their part, that cost me another overdraft fee as my account was still in the negative from the previous fees. Currently I am waiting for my next paycheck to bring me back to a positive balance. And for the XXXX charge to be credited back to my account ( by the XXXX company ) so I can be refunded the overdraft fee associated with the XXXX charge. 

As of XX/XX/XXXX I had deposited enough money in my account to bring my account to a positive balance. But unfortunately the unexpected overdraft fee for the XXXX charge kept my balance negative and created another overdraft situation when a $ XXXX charge for XXXX posted. If those two fees of $ XXXX had not occurred, my balance would currently be positive. And I would not be at more risk of incurring additional exorbitant overdraft fees.