NEW YORK – New York Attorney General Letitia James today secured more than $700,000 from Pathward, National Association (Pathward), a national bank formerly known as MetaBank, for unlawfully freezing customer accounts and illegally transferring money to debt collectors. An investigation by the Office of the Attorney General (OAG) found that Pathward illegally sent debt collectors tens of thousands of dollars from New Yorkers’ accounts and froze hundreds of customers’ accounts more than 1,400 times. New York law prohibits debt collectors from obtaining funds that include certain government benefits and prevents banks from freezing bank accounts with protected wages. The OAG investigation found that Pathward regularly sent debt collectors funds that were government benefits or that should have been subject to the protected wages threshold. As a result of this agreement, Pathward is required to refund dozens of New Yorkers in the Bronx, Manhattan, Brooklyn, and Queens nearly $80,000 and pay $627,000 in penalties.