Press Releases
02/27/2024
Attorney General Tong Seeks Banking Consumer Protection Reforms
(Hartford, CT) – Attorney General William Tong submitted testimony and will testify today before the Banking Committee in support of expanded authority to investigate and bring civil enforcement actions regarding bank consumer financial protection failures.Attorney General Tong will testify remotely at the Banking Committee hearing taking place at 11 a.m. today, February 27 in Room 1B of the Legislative Office Building.
The legislation would empower the Office of the Attorney General to enforce critical provisions of the federal Consumer Financial Protection Act of 2010 (CFPA), also known as title X of the Dodd-Frank Wall Street Reform Act. The bill would authorize the Attorney General to conduct investigations of alleged deceptive and anti-consumer practices. Federal authorities and other state attorneys general have used this authority to investigate and bring civil enforcement actions to hold accountable payday lenders, debt collectors, cash advance companies, for-profit colleges, tribal lending entities, and purported law firms operating mortgage relief schemes. The bill would give the Office of the Attorney General the investigatory tools necessary to enforce CFPA protections against banks chartered in other states.
Federal authorities and other state attorneys general who already have this authority have investigated and brought civil enforcement actions to hold accountable payday lenders, debt collectors, cash advance companies, for-profit colleges, tribal lending entities, and purported law firms operating mortgage relief schemes.
The legislation was first introduced in 2022, and reintroduced last year following the fraught merger between People’s United and M&T banks. To date, the Office of the Attorney General has received over 425 complaints regarding the merger. While the bulk of those complaints were received in the immediate months following the takeover, issues remain. The Office of the Attorney General received 25 new complaints in the past year, including complaints from individuals with challenges related to power of attorney and principal payments on home equity loans.
“We cannot wait for another fiasco to protect Connecticut consumers and strengthen our laws,” said Attorney General Tong. “More than a year after the disastrous M&T takeover, we continue to receive complaints from customers. Connecticut consumers deserve the same protections already in place in nearly every other state nationwide.”
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Media Contact:
Elizabeth Benton
elizabeth.benton@ct.gov
Consumer Inquiries:
860-808-5318
attorney.general@ct.gov