Attorney General William Tong is asking the state legislature to grant him “investigative authority” over bank consumer financial protection failures following the merger between People’s United and M&T, which has been plagued with problems.
M&T acquired the Bridgeport-based bank for $7.6 billion in April 2022. People’s United customers were moved to M&T’s platform in September.
Tong’s office said it has received more than 400 complaints stemming from the conversion, from reports of money disappearing from accounts to loss of access to online banking.
Tong is asking the legislature to approve a bill that would empower his office under the federal Consumer Financial Protection Act of 2010, including authorizing the attorney general to conduct investigations of alleged deceptive and anti-consumer practices.
According to Tong, customers reported that their automatic payments were delayed following the switch to M&T, causing them to pay their bills late. There are also reports of unauthorized deposits and withdrawals, which Tong called among the most “disturbing” complaints.
“These customers also reported difficulty when they tried to rectify the errors with M&T,” Tong said.
Tong has also received complaints about paychecks not being deposited despite their employer transferring the money.
“The frustration so many elected officials heard from our constituents following the takeover of People’s United Bank by M&T Bank last fall provides a clear illustration of the regulatory gap this proposal seeks to fill,” Tong said during testimony Wednesday.
