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CT AG Seeks Authority Over M&T Bank After Merger Complaints

M&T BankFebruary 21, 2023Connecticut Attorney General

Summary

Connecticut Attorney General William Tong testified in support of legislation to grant his office investigative authority under the Consumer Financial Protection Act to address widespread consumer complaints following the merger of People’s United Bank and M&T Bank, including issues with account access, unauthorized transactions, and payment processing errors.

Contract Impact

In-house legal teams should review vendor and customer agreements with M&T Bank, particularly account servicing contracts, loan servicing agreements, and digital banking platform agreements. Focus on clauses governing account access rights, automatic payment processing, fee disclosures, power of attorney acceptance, and merger integration protocols. Specific changes may include adding clear timelines for system conversions, mandatory notice periods for payment date changes, explicit requirements for honoring pre-existing legal authorities (like POAs), and enhanced dispute resolution mechanisms for merger-related errors. Agreements should also incorporate compliance with Consumer Financial Protection Act standards for handling consumer complaints during integrations.

Contract Search Terms

power of attorney accommodation clauseonline banking access restoration termsautomatic payment date change provisionsloan servicing transfer protocolsaccount product default termsmerger-related fee disclosure requirementsaccount conversion proceduresdispute resolution for merger errors

Laws Cited

Consumer Financial Protection Act of 2010Dodd-Frank Wall Street Reform Act

Violation Types

Entity Details

Entity

M&T Bank

Also known as: M&T

Industry

Financial Services

Official Sources

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