Connecticut Attorney General William Tong is seeking new investigative authority over bank consumer financial protection following the difficulties that arose in the merger between People”™s United and M&T banks.
According to Tong, his office received over 400 complaints regarding the merger, including reports of money disappearing from accounts, loss of access to online banking and a refusal by M&T to accommodate those with pre-existing power of attorney.
“Five months after the conversion, my office continues to receive complaints from individuals who cannot manage a loved-one”™s money despite having the legal authority to do so under a power of attorney, because M&T curtailed their account access,” Tong said. “When my office brought this systemic issue to M&T”™s attention, they refused to address the problem broadly, opting instead to wait for customers to complain and resolve the complaints on a case-by-case basis. Other common complaints include a sudden loss of access to online banking and debit accounts; inability to make payments or obtain records on loans transferred from People”™s United to M&T; and defaulting checking customers into M&T checking account products requiring the highest minimum balance, with highest fees.”
A bill before the General Assembly would provide Tong”™s office with new investigative authority under the federal Consumer Financial Protection Act of 2010, including the ability to use investigatory tools necessary to enforce CFPA protections against banks chartered in other states, including Buffalo-headquartered M&T.
“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 added.
