Attorney general tells legislature M&T Bank complaints linger

HARTFORD — Many customers of M&T Bank are still experiencing problems following account conversions six months ago related to M&T’s acquisition last year of Bridgeport-based People’s United Bank, according to Connecticut Attorney General William Tong. The predicament shows the need for legislation to strengthen his office’s ability to investigate banks, he told state legislators on Thursday.

Tong testified remotely before the General Assembly’s Banking Committee in support of a bill that would enable the attorney general’s office to conduct investigations of allegedly deceptive and anti-consumer practices to determine whether there have been violations of the federal Consumer Financial Protection Act. Additionally, the legislation would give the attorney general the investigatory power to enforce certain CFPA protections against banks chartered in other states, such as Buffalo, N.Y.-headquartered M&T, the subject of more than 400 complaints submitted to Tong’s office since the conversion last September of People’s United accounts to M&T accounts.

“This is a continuing challenge for us here in the Office of the Attorney General,” Tong said in his testimony. “We continue to have to put pressure on M&T to make it right.”

Assessing M&T’s customer service

In his testimony, Tong outlined the issues that he said are still affecting M&T customers.

“There are still residents who have powers of attorney over a parent or loved one that can’t get access to funds on deposit to make important financial transactions for the people that they care for,” Tong said. “There are people that expect to see their paychecks directly deposited into accounts and are surprised to find that money isn’t there. Or they’re finding that large amounts of money suddenly disappear from their accounts, and they have to fight with the bank to get the money back into their accounts.”

M&T officials have acknowledged that many customers initially experienced difficulties accessing their accounts following the system changes. But they said that the company has responded appropriately and that it is providing satisfactory service to its more than 600,000 customers in Connecticut.

“The attorney general is misinformed about the current status of M&T’s customer service. The reality is that M&T customer service phone lines and traffic in branches returned to historically normal levels months ago,” M&T said in a written statement. “We are confident in our actions to make things right for our customers and continue to do so each and every day.”

Tong noted that M&T “has been responsive when I call.” But he added that, “it shouldn’t take a call from the attorney general’s office for the bank to do the right thing. It seems to me that there are still systemic issues within the bank — particularly around powers of attorney, for example — where they haven’t made a systemwide change, or they haven’t made the system-wide adjustment, so that M&T and People’s processes are fully merged and working properly.”

Since starting as attorney general in January 2019, Tong said, “I have rarely seen a consumer issue with this many complaints.”

As for the number of unresolved complaints, Tong said, “To be fair to the bank, we’re working that (number) out, but suffice it to say, there are still open cases.”

M&T said in its statement, “We have had more than 30 meetings with the attorney general’s office to review complaints they have received and have regularly reached out to their staff between meetings with additional updates. Those communications have been direct, proactive and productive, which is inconsistent with today’s testimony from the attorney general. Currently, only a fraction of the complaints received via the attorney general’s office remain open, and we are actively engaged with our customers to resolve them. We have been and will continue to be responsive as we receive complaints.”

Several Banking Committee members said they shared Tong’s concerns about M&T customer service.

“I had a number of constituents that had that exact issue when it came to trust accounts. I, too, ended up making that phone call and getting it resolved,” said state Rep. Tom Delnicki, R-South Windsor, the committee’s ranking House member. “I’m just surprised — and, quite frankly, shocked — that it’s not totally resolved six months later.”

Committee members commended Tong’s office for its handling of M&T customers’ complaints.

“I think it was important to have your office play a role,” said state Rep. Jason Doucette, D-Manchester, the committee’s House chairman. “Because of the way that banking regulation works … and the fact that we had M&T, that was an outof-state-chartered bank, our regulatory authority only went so far. Our regulator could only do so much.”

State Sen. Patricia Billie Miller, D-Stamford, the committee’s Senate chairwoman, told Tong, “I know that you played a major role in trying to resolve some of the problems. She also expressed her hope for stronger Congressional oversight of the banking industry “because this committee only has cognizance over state-chartered banks.”

M&T added in it statement: “We will continue to work with all state and city leaders across Connecticut, including the state legislature and our regulators, to demonstrate the value that M&T brings to its customers and communities.”

Debate of bill

Tong said there are precedents in other parts of the country for the changes included in House Bill 6681.

Federal authorities and other state attorneys general who already have the authority that Tong is seeking have investigated and brought civil-enforcement actions against payday lenders, debt collectors, cash-advance companies, for-profit colleges, tribal-lending entities, and purported law firms operating mortgage-relief schemes, according to written testimony submitted by Tong, a secondterm Democrat, who was reelected last November. He previously served as a state representative, including a stint as the Banking Committee’s House chairman.

“We’re asking the committee simply in this bill to make sure that it’s clear in the state statute that the attorney general’s office has the ability to conduct a thorough investigation first — to serve subpoenas, to propound interrogatories and examine witnesses — and then decide whether a lawsuit is necessary,” Tong said. “We already have the enforcement authority. But it spells out and clarifies the enforcement authority, so that the attorney general’s office and the state of Connecticut can be there for consumers, depositors and residents.”

Some of the hearing’s speakers, however, expressed concerns about the legislation possibly muddling oversight of banks.

Connecticut Post M&T Bank has a regional headquarters and branch at 850 Main St. in downtown Bridgeport. M&T has been heavily criticized for its customer service by Connecticut Attorney General William Tong.