Consumer complaint received 2022-04-19
Product: Checking or savings account 
Sub-product: Savings account
Issue: Managing an account
Sub-issue: Fee problem
Company: KEYCORP
State: CO

Complaint:
Predatory Practices by KeyBank After discovering the fraud of XXXX XXXX in opening fictitious savings accounts in our names, my XXXX XXXX  husband and I decided to close our accounts with them and were looking for a new bank. We received an offer of KeyBank XXXX XXXX Checking Account - {$300.00} Bonus. We decided to try KeyBank believing that they couldnt be any worse than XXXX XXXX. We were to discover the hard way ; how wrong we were. 

I explained to the KeyBank employee why we had closed the XXXX XXXX accounts and why we were going to open an account with KeyBank. The first problem we ran into was that KeyBank was not forthcoming about giving their new customers the so called {$300.00} bonus. I spent weeks contacting KeyBank to see why they did not fulfill their offer and wasting valuable time that should have been spent on my XXXX XXXX  husbands care. After many excuses, we finally received the bonus. 

Believing that was a single problem that occurred, we continued our business with Key bank. During a couple of inside branch visits, it was strongly suggested that we move most of our money from the checking account to a savings account as it would be safer in the event of our debit card being stolen. It seemed a reasonable explanation, so we did that. The irony is that our monies werent at risk from stolen debit cards, they were at risk from KeyBank nickel and diming us to exhaustion. I describe to people that it is like asking the fox to guard the chicken coop. 

During the time that I was full-time caregiving for my husband as he was XXXX, I was having to babysit our KeyBank accounts after finding more fees charged to our savings account. It appeared to us that this was the strategy to make back the {$300.00} bonus that was offered to KeyBank customers. After seeing the charges to our savings account, I contacted the bank, and our savings account was switched to another type. There should not have been any issues to begin with as I explained explicitly what the savings account was going to be used for. 

Thinking that the savings account issues were resolved, I was able to attend to my husband and then upon death, begin planning his funeral. A few weeks ago, I discovered that our savings account had more fees charged to us. I decided that I no longer wanted to deal with these ongoing issues and called the bank to arrange closing the account. That same day, I called several other banks ( local ; national ; large ; small ) asking about their policies regarding fees, in particular, The Federal Reserve 's Regulation XXXX The banks told me that they were aware of The Federal Reserve 's Regulation D however, Because of COVID, Reg D has been temporarily suspended, and no resumption date has been announced. 

I then called the Federal Reserve Board in XXXX XXXX, to confirm and they did so. I was also referred to the 10th District, Federal Reserve Bank, and the XXXX branch of the Federal Reserve Board. I received the same confirmation. A couple weeks ago, I went to the KeyBank branch to close our savings account. I asked the employee, facetiously, There isnt a fee to close the account, is there? He actually paused and was calculating. It was explained to me that they didnt have enough money at the branch to give me cash. I told them a check was fine as I knew I was going to deposit at a bank that was following the Federal Reserve Board guidelines about suspension of Regulation D. Again, I asked facetiously, There isnt a fee for the check is there? I was speechless when the employee told me there was. But they graciously waived it. 

To this day, I am utterly amazed and still can not believe this bank, that I thought was going to be more honest than XXXX XXXX, turned out to be so much worse. Duplicity is never a good business plan and my husband, and I have always tried to avoid businesses that use duplicity as part of their business plan. 

Im also thoroughly disgusted that upon receiving a call from KeyBank which I thought was to settle the issues, I was instead told that The Federal Reserve 's Regulation D and suspension of it didnt apply to KeyBanks policies. Interesting that the other banks are following the suspension. I even said, So the Federal Reserve Board is lying? They were confused and didnt know what they were telling me? 

It is a shameful, that KeyBank has no qualms about draining their customers accounts by nickel and diming them along the way. Even worse, is that they were financial predators with seniors, on a fixed income, and dealing with a spouse terminal illness. Our file on KeyBank is an inch thick. I wish we have never allowed ourselves to be reeled in by a so called {$300.00} bonus for opening a new customer account with them. 

I feel that the XXXX charges and money that Key bank deducted from our savings account should be refunded, especially in light of The Federal Reserve 's Regulation D-Reg D has been temporarily suspended, and no resumption date has been announced. I also called XXXX XXXX and the XXXX XXXX, and XXXXXXXX Branch to advise them that according to KeyBank, the Federal Reserve is confused, doesnt know what they are talking about, and that KeyBank does not have to follow their rules of suspension.

Company response to consumer: Closed with explanation