Peoples United Bank merger with M&T Bank

Washington (September 23, 2022) — Senator Edward J. Markey (D-Mass.) today joined his colleagues led by Senator Richard Blumenthal (D-Conn.) in sending a letter to M&T Bank urging the company to financially compensate customers who were affected by conversion failures during the transition of People’s United Bank accounts to M&T accounts.

“We write to request that M&T Bank commit to financially compensate all customers who incurred fees as a result of missed credit card, utility, or other payments, due to M&T Bank’s mishandling of the acquisition of People’s United Bank,” the Senators wrote. “Additionally, all customers who were unable to access their funds during the conversion should receive some appropriate financial remuneration for the inconvenience, as well as an apology.”

Since the conversion at the beginning of September, new M&T customers have complained that they are not able to access their accounts, have endured long wait times and delays in payment processing, and did not receive adequate customer support. The Senators’ express deep concern about these issues and urge M&T to quickly resolve the complications.

“It is imperative that M&T act swiftly to comply with all laws, regulations, and regulatory expectations relied on during the acquisition approval process and that all customers be fairly compensated if they were negatively impacted as a result of M&T’s mishandling of the merger with People’s United Bank,” the Senators write.

The Federal Reserve approved M&T Bank’s acquisition of Bridgeport-based People’s United Financial, Inc. and People’s United Bank in May of 2022. Under the terms of the acquisition, M&T committed to having 1,000 employees in Bridgeport. Last week, the failed management of the conversion and lack of access to customer support for individuals and businesses has led Blumenthal to call on the Federal Reserve and CFBP to investigate this issue.

Joining Sentor Markey in signing the letter led by Senator Blumenthal are Senators Patrick Leahy (D-Vt.), Bernie Sanders (I-Vt.), and Elizabeth Warren (D-Mass.).  M&T has bank locations in Connecticut, Massachusetts, and Vermont.

A full copy of the letter can be found below.

Dear Mr. Jones,

We write to request that M&T Bank commit to financially compensate all customers who incurred fees as a result of missed credit card, utility, or other payments, due to M&T Bank’s mishandling of the acquisition of People’s United Bank. Additionally, all customers who were unable to access their funds during the conversion should receive some appropriate financial remuneration for the inconvenience, as well as an apology. We are profoundly troubled that this acquisition lacked sufficient coordination and resulted in complications for many individuals and businesses accessing their accounts and their funds.

These M&T and People’s United conversion failures may have violated consumer and financial compliance laws and regulations and further investigation into the matter will bring further clarity to the situation to help ensure future and continued compliance. Regardless, the execution of the acquisition was not in accordance with regulatory expectations when approvals were granted by the Federal Reserve and the Connecticut Department of Banking. Through the mismanagement of the conversion of People’s United Bank accounts to M&T accounts, existing customers, individuals and businesses, endured hours long wait times and delays in payment processing, were denied access to their accounts and funds, and did not receive adequate customer support. This demonstrates a severe lack of due diligence in the planning and a lack of resources devoted to the implementation of the acquisition. 

While the execution of this merger began nearly two weeks ago, customers continue to be faced with complications that have arisen as a direct result of the problems encountered during the conversion process. It is imperative that M&T act swiftly to comply with all laws, regulations, and regulatory expectations relied on during the acquisition approval process and that all customers be fairly compensated if they were negatively impacted as a result of M&T’s mishandling of the merger with People’s United Bank.

An article from

Dive Brief

M&T pledges to rectify People’s United account access issues

Published Oct. 3, 2022

Gabrielle Saulsbery Reporter

Atstock Productions via Getty Images

Dive Brief:

• M&T Bank will compensate former People’s United Bank customers for financial troubles encountered when their accounts were converted to a new computer system over the Labor Day weekend, including late fees incurred on bills when they couldn’t access their funds, M&T CEO Rene Jones told senators in a letter last week.
• Sens. Richard Blumenthal, D-CT; Elizabeth Warren, D-MA; Bernie Sanders, I-VT; Patrick Leahy, D-VT; and Ed Markey, D-MA, voiced their concerns days earlier regarding the conversion that accompanied the banks’ $7.6 billion merger.
• “M&T Bank’s commitment to compensate customers who were adversely impacted by the conversion — whether missing payments or denied access to their money — is a welcome step toward making things right,” the senators said in response Thursday, adding that they “will continue monitoring the situation to make sure M&T follows through with their promises. Consumers need swift relief and remedy now for the hardships and stress the conversion failures caused.”

Dive Insight:

M&T’s pledge to make harmed customers whole came during a week when the bank disclosed to Connecticut Attorney General William Tong that it laid off 325 People’s United employees, with plans to cut 333 more, according to CTInsider. The bank had initially targeted 747 Connecticut jobs as a result of the merger. M&T said, however, that it plans to hire for about 350 other jobs.

Jones, addressing the senators, wrote that the bank’s commitment to its customers includes “owning up to our mistakes, working diligently to remedy them, and taking actions to protect our customers against loss or other harm.”

Through the end of October, M&T is waiving consumer checking and savings fees and is not assessing late fees for consumer and mortgage loan payments, Jones said, adding that front-line branch and call-center employees have been authorized to waive other fees as appropriate.

“For customers who were unable to access funds during the conversion, we will provide appropriate financial remuneration,” Jones wrote. “We have already begun to reimburse customers who incurred fees as a result of late credit card, utility and other payments."

Of the 1 million former People’s United customers and their 1.7 million accounts affected by the conversion, 0.6% made complaints to M&T about accessing their accounts, Jones wrote, but added there are likely others who didn’t formally complain.

As CEO, Jones said, “I take full responsibility and apologize to our customers who experienced delays and disruptions or whose expectations were not met.” 

Tong, too, blasted M&T last month for what he called a “serious lack of preparation” following reports that some customers were left unable to access their online accounts as a result of the transition.

“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 wrote in a letter to Michael Keegan, M&T’s executive vice president and head of community markets, on Sept. 14.

Jones’ letter to senators on Sept. 26 assured them that in the first week post-conversion, the bank “immediately address[ed] customer concerns as soon as [it was] made aware of them, extend[ed] its call center hours, and dedicat[ed] additional staff to branches requiring support.”

“We continue to proactively reach out to affected customers via phone and email if and when we suspect they may be having issues as a result of the conversion,” he wrote.

Did peoples bank merger with m& t bank?

NBC Universal, Inc. Some former People's United Bank customers say they have experienced problems after the change over the weekend to M&T Bank. Over the long weekend, M&T Bank merged with People's United Bank.

What bank did Peoples bank merge with?

PEOPLES BANCORP INC. AND LIMESTONE BANCORP, INC. ANNOUNCE DEFINITIVE MERGER AGREEMENT.

What is the new name for People's United bank?

Now that your accounts have transitioned to M&T's systems, learn about what comes next.