I have been using Key Bank for more than 20 years and up until now, have been happy with them. However lately, they seem to be playing fast and loose with NSF problems. One problem is allowing an atm withdrawal when I did not have the funds abailable. This was a mistake and when I realized it, I assumed the funds would be unavailable. It wasn't. I was charge a $36 total NSF fee, even though my automatic DoD deposit hit the bank just 13 hours later. I did complain to them and they did reverse the charge after a few sarcastic remarks.
The last NSF fee was the last draw. My automatic deposit was posted on 1/18/07, as I checked my statement online everyday, that deposit was there. I went to a convenience store (as is my habit before going to work) and made a purchase, on the 18th. They charged me a $36 total NSF fee, posted on the 19th. From what I can see on my statement, they deducted that before they added my deposit. This is something completly new as I have been doing this for years and never was charged an overdraft fee for debit/credit purchases on the store. I was told that my automatic deposit isn't 'available' until 8 am. The purchases were made before that. It was maybe a half hour or 15 minutes before 8am. This is extremly unfair considering that an automatic deposit is essentially guaranteed funds. Also, this evidently is a new policy as I've not had this problem before.
Key also seems to backdate checks. For example, a check I wrote to a grocery store, which I knew from past experience, would take about 3 days to post, was posted on the 18th, but backdated to the 17th.
I understand about electronic checks and in this technological age, banks should be able to post checks in 'real time' For example, My deposit was posted for the 18th when checking my bank statement on the 18th. The check however, was posted for the 17th. It wasn't posted on the 17th, when I checked my statement. Also deposits/withdrawls in pending is added or subtracted on my account. The overdraft however was not.
I have done some research and know that many banks tend to target low to middle income people with fees to help offset credit cards costs and because I get a 'leave and earning' statement about a week before payday, I know the bank is aware of this pending deposit at least 2-3 days before the check can actually be posted, and yet have no problem using that money for investments. And expecially with a DoD automatic deposit, which should be made available immediatly, not at 8 a.m. when the banks open.
I too live from paycheck to paycheck and sometimes overdrafts happen. I have lived with it, however now, it's getting quite out of hand, expecially since Century 21 came into play.
Cornwall on Hudson, New York