Customer Outrage Over Bank Conversion Prompts 'Concern' From CT Attorney General

CONNECTICUT — Connecticut Attorney General William Tong Thursday issued a letter to M&T Bank expressing "concern" and seeking information regarding "numerous complaints from consumers and employees following the conversion from People's United Bank."

The conversion took place over the Labor Day weekend. M&T, in various mailings, had sent detailed instructions to customers about preparing for the conversion. That led to a smooth experience for some customers, but others found themselves locked out of accounts or struggling with passwords. Tellers have been working 12-hour days and, in the case of one branch in Vernon, at least two windows in the lobby have been dedicated to access issues for two weeks.

In his letter, Tong asks for information regarding "commitments made by M&T Bank to its Connecticut work force, as well as identification of a high-level representative to expedite complaints filed with the Office of the Attorney General."

He added in the letter, "I share your customers' outrage at the serious lack of preparation for this conversion. M&T's poor planning cost Connecticut customers timely access to their banking records, their bill pay systems, and their money. Connecticut customers wasted hours of time on hold and in branches trying to sort out problems that should have been addressed prior to the conversion. Should Connecticut consumers continue to experience extended gaps in customer service, my office will not hesitate to use the full extent of our authority to protect families and businesses."

Tong said that, in response to a letter from him, M&T Bank in August 2021 made a "series of commitments to Connecticut jobs and to Bridgeport as its New England regional headquarters." In his Thursday letter to M&T, Tong asked for detailed employment information to determine the extent to which M&T is now honoring those promises.

"At that time, I noted that this was an important step forward after a series of mixed messages and confusion," Tong said. "While I appreciated those commitments, I also noted at that time that I would be watching closely to ensure that your actions matched your written commitments to local jobs and Connecticut communities."

Click here to see the transcript of the letter.

M&T offered an immediate response Thursday:

"We want to thank Attorney General Tong for his letter. We are in complete agreement that we must remain laser-focused to serve customers and improve their experience as they interact with a new financial institution for the first time," it read. "That is why we have been open with our customers before and during the conversion process. While the vast majority of customers had a successful onboarding and log-in experience, we know the experience for others has fallen short of our expectations, and we are not going to rest until every single customer is satisfied."

M&T executives said the bank has taken "concrete steps to improve the customer service experience." According to M&T, those steps include:

• Dedicated additional staff to branches in Connecticut to provide in-person support
• Activated digital upgrades to assist all customers with their mobile and online banking experience
• Extended call hours to provide extra time for customers to receive assistance by phone
• Reduced wait times each day on phone lines over the past week
• Proactively reached out to customers to activate cards and accounts

"We have offered to meet with Attorney General Tong in-person immediately to be able to go over his concerns and provide the details he's asking for when it comes to M&T's commitment to Connecticut," bank executives said. "M&T Bank is dedicated to being a strong, local partner across Connecticut. We are here and we will be here to support community organizations, serve the areas of Connecticut which have been historically underbanked, and provide the necessary support to entrepreneurs and small businesses who have been overlooked. We will lead with our purpose of making a difference in people's lives, and being the community bank partner Connecticut deserves. What has been remarkable to see has been the dedication of our staff who have showed commitment, empathy, and respect for all customers. M&T Bank will not stop working until all customer issues are solved."

Other politicians have chimed in.

State Rep. Geoff Luxenberg (D-Manchester) said M&T Bank's Connecticut customers have experienced "egregious service disruptions."

He added, "Whether it is debit cards that are not working, online banking account issues, two- or three-hour wait times to have a customer service call answered or not having received a new debit card, it is simply a mess. Connecticut, New York and Federal regulators need to examine why this is happening. Banking is highly mobile today. When it reaches the point of being unable to resolve online issues by going to a branch or calling customer service, maybe there needs to be a regulatory remedy that better protects consumers and businesses during a merger of this kind."