Six months ago my mother decided to switch banks and chose her local Key Bank. My mother is not a reader of the details and when you sign up for a new account there are dozens of pages of fine print which the bank teller quickly glosses over. Initial here, sign here, please. One of those details is that new accounts have a 30 day waiting period before checks will be available to cash, even paychecks from major national companies. My mother, mind you, is not a rich woman and needs access to her paycheck right away. That is mainly because of a bad business partnership which left her with all the business debt and none of the proceeds from the sale of the business.
Anyways, I digress. So, my point is that the bank teller did not inform her that she would not have access to her paycheck for 30 days! Then she finds out the next day that her other bank charged her a $5 fee for utilizing a cash advance. Apparently, the bank teller at Key Bank told my mother she didn’t need to drive 2 blocks to her other bank to get the minimum deposit but to just use her debit card. So my mother comes to me to fix this mess and is really upset over the $5 fee but more importantly that she wasn’t told she didn’t have access to her paycheck for 30 days until after she deposited the check and tried to take out some cash.
We headed to Key Bank right away and tried to speak with a manager but we were told that the manager was on vacation. We left my mother’s information for a call back from the manager. We tried to get the actual paycheck back but that was not possible. So then we tried to close the account. That was not possible because the check needs to clear, which they stated takes 30 days. Really?!? A check from a major national company takes that long to clear?
So, we emailed the company and got the generic response back that someone will look into this and get back to us. It’s six months later and my mother never received a response from corporate or from the local Key Bank.
Finally, my mother cancelled the account last week, 6 months after opening it (because even closing it one day sooner than that will cost you $25! I am not joking.). She now has an account with another bank, got immediate access to her paycheck and wasn’t tricked into using a cash advance. Lesson learned.