M&T Bank said it is taking steps to compensate customers who were stung by the Buffalo, N.Y., bank’s conversion of People’s United Financial in Bridgeport, Conn.
The $204 billion-asset M&T, which bought People’s United earlier this year, experienced glitches and other issues as part of the integration process.
“For customers who were unable to access funds during the conversion, we will provide appropriate financial remuneration,” CEO Rene Jones wrote in a letter to legislators who have demanded action from the bank.
M&T is reimbursing customers who incurred fees as a result of late credit card, utility and other payments, Jones said. The bank is waiving late fees through the end of October for consumer loan and mortgage payments.
Bank employees have been authorized to waive other fees, as needed, he added.
Jones said about 0.6% of converted customers submitted complaints. Overall, M&T onboarded about a million new customers and more than 1.7 million accounts.
Several lawmakers who have demanded answers said the effort is a good start.
The 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,” Sens. Edward Markey (D-Mass.), Richard Blumenthal (D-Conn.), Patrick Leahy (D-Vt.) and Elizabeth Warren (D-Mass.), said in a press release.
“We are encouraged by M&T Bank’s prompt action in response to our letter, but will continue monitoring the situation to make sure M&T follows through with their promises,” they added. “Consumers need swift relief and remedy now for the hardships and stress the conversion failures caused.”