Fleet Bank Customers Report Big Problems Resulting from Merger.

Byline: Anthony Flint

May 16--Banking in Massachusetts remained confusing yesterday, as BankBoston customers whose accounts were converted to Fleet over the weekend reported problems, and Sovereign Bank launched an advertising campaign to woo disgruntled depositors.

The conversion of 1.2 million BankBoston accounts and 80,000 small business accounts was completed over the weekend, said FleetBoston Financial Corp. spokesman Jim Schepker. As of yesterday morning, 187 branches and 858 ATM machines had been converted from BankBoston to Fleet, as the two former banking giants combine their operations after last year's $13 billion merger. A similar number of remaining branches and ATMs will be converted starting July 7.

Scores of former BankBoston customers reported long lines at branches, long waits on the telephone with customer service, problems using the bank Web site, and difficulties activating and using their new Fleet ATM cards.

Meanwhile, Sovereign Bank launched advertisements that appeared in yesterday's newspapers preparing customers for its own conversion starting June 19. Sovereign, based in Wyomissing, Pa., won the bidding for FleetBoston branches the bank was required to divest to encourage competition.

The ads state that the 500,000 "lucky people" will be "switched from their old bank to the new Sovereign Bank New England." In smaller print below that text, the ads state "the rest of you will just have to change banks on your own."

Appearing on the same day that so many BankBoston-turned-Fleet customers were at wit's end, the ads seem to be an attempt to capitalize on the logistical problems. But Sovereign spokeswoman Barbara Coleman said no one from the bank was ready to discuss the marketing strategy yesterday.