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.
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.
Entity
M&T Bank
Also known as: M&T
Industry
Financial ServicesOfficial Press Release
https://portal.ct.gov/ag/press-releases/2023-press-releases/attorney-general-tong-seeks-banking-reforms-in-aftermath-of-mt-conversion
ag tmy ba hb 6681 aac oag and dodd frank 22123 f.pdf?rev=125
https://portal.ct.gov/-/media/ag/press_releases/2022/ag-tmy-ba-hb-6681---aac-oag-and-dodd-frank-22123-f.pdf?rev=125bb5d0d95f458e9c60cd322b9dee15&hash=F38D317AE80537839B01A9BAB706E0FD
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.
$13.7M
Connecticut joined a coalition of states and the federal government in settling allegations that Takeda paid healthcare providers speaker honoraria and provided meals to induce prescriptions of Trintellix, leading to allegedly false claims to government healthcare programs. Takeda agreed to pay $13,670,921 plus accrued interest, with portions allocated to federal and state programs.