• Report: #231600

Complaint Review: Key Bank Corp

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  • Submitted: Sat, January 20, 2007
  • Updated: Wed, June 25, 2008

  • Reported By:Cornwall on Hudson New York
Key Bank Corp
366 Windsor Hwy Vails Gate, New York U.S.A.
  • Phone: 845-565-3500
  • Web:
  • Category: Banks

Key Bank Corp Constant NSF fees even when an automatic deposit hit the bank the same day Ripoff Vails Gate New York

*Consumer Comment: A little bit of reality...

*Author of original report: Understand

*Consumer Suggestion: Banks making lots of money on NSF fees.

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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.

Kathleen
Cornwall on Hudson, New York
U.S.A.

This report was posted on Ripoff Report on 01/20/2007 08:18 AM and is a permanent record located here: http://www.ripoffreport.com/r/Key-Bank-Corp/Vails-Gate-New-York-12520/Key-Bank-Corp-Constant-NSF-fees-even-when-an-automatic-deposit-hit-the-bank-the-same-day-R-231600. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Consumer Comment

A little bit of reality...

AUTHOR: Charles - (U.S.A.)

I don't know why more consumers don't get up in arms about this.

Most people don't get up in arms about this because they don't get NSF charges.

Although probably legal, it is certainly unethical, especially to those of us who are not wealthy and we are sseing this much more since Century 21 legislation. Before the legistlation, I was never able to withdraw anything from an ATM if there were NSF.

You bet it's legal! No better time than the present to change your habits and get in line with what's going on!

The wealthy or the well-off don't have to worry about such things and tend to be the first to suggest idiotic logical ideas such as keeping track of your checking account via the register. I guess they just don't make mistakes.

Absolute hogwash. I am not wealthy or well-off, yet I don't have issues with the way banks work. If keeping a register means me not paying NSF charges, then call me idiotic, however I doubt I am not the idiotic one.

I can almost guarantee if everyone kept an accurate register and didn't spend money they didn't have, not one single person would ever pay another NSF charge. The bottom line is you have to take responsibility for your actions and stop blaming banks.

~Ben
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#2 Author of original report

Understand

AUTHOR: Kathleen - (U.S.A.)

Thanks N.

I am beginning to learn that as well and after doing some research, I found out through a few financial reports on banks that they do allow you to access your ATM if there is NSF because they can charge you the NSF fee. They do this to offset their charges.

When I queried my bank about the additional ATM nsf charge of $32 which was dated 1/18, I was told that it was submitted on the 16th, which doesn't make sense to me as most of my Credit/debit charges clear the following day even though it is deducted in the 'pending' area.

I am attempting to get a printout from the souce and have asked my bank to send me a copy. I generally keep these receipts and went through the 16th receipts and couldn't find one that had the exact amount on it. Of course, I could have thrown it away, which is why I am trying to track it down.

I don't know why more consumers don't get up in arms about this. Although probably legal, it is certainly unethical, especially to those of us who are not wealthy and we are sseing this much more since Century 21 legislation. Before the legistlation, I was never able to withdraw anything from an ATM if there were NSF. The wealthy or the well-off don't have to worry about such things and tend to be the first to suggest idiotic logical ideas such as keeping track of your checking account via the register. I guess they just don't make mistakes.
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#3 Consumer Suggestion

Banks making lots of money on NSF fees.

AUTHOR: Nikki - (U.S.A.)

Banks are making a lot of money these days on the NSF fees and are constantly changing their policies because they know people are not keeping checkbook registers anymore. They know we are relying on the online banking programs.

As for allowing you to make an ATM withdrawal. Many are complaining their bank does this. Of course they let you. This way they can charge you NSF fee and they are entitled to do just that.

As for the direct deposit and the charge. Actually the direct deposit usually covers any charges made within the same date of the direct deposit. If your bank has changed their policy to 8AM, shame on them.

As for the check you wrote, even though they didn't post it until the 18th, they know the check came to them on the 17th, so they date it for the 17th. Just like if you know your credit card company got your payment on the 17th, but didn't do their work until the 18th, you would expect them to post it as of the 17th (some do and some don't). Forget about the 2-3 day hang time on checks. Doesn't happen anymore. In fact, I wouldn't be surprised if banks started posting checks back to the day you wrote it.

Also, NSF fees are not posted until 1-2 days after the check has bounced. If they see a check bounced today, they will usually add the NSF fee tomorrow.

I don't work for a bank, but I've gotten to learn how they work throughout the years so I don't get screwed.
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