Q: I reached a settlement with a collection agency. Before I paid them, they levied my bank account. Is that legal?
A: If you have a payment agreement, it is probably a violation of the FDCPA and the Rosenthal Act for them to levy your bank account. If you have a settlement with them, the WRITTEN settlement agreement should state that they cannot levy your bank account. If it does and they levy, they are more likely than not to be in violation. Even if it does not say this, they are probably in violation.
How do you avoid this? Don’t give the debt collector your bank account information and do not deal with them on the phone. If you are going to deal with them without an attorney, make sure you deal with them in writing only!