Can the collector take $$ from the bank?

I have a loan that was recently sent to a collection agency. The loan company agreed to go into settlement and pay only a small fee but I did not have the money. When I file taxes, the company takes away my state tax refund. I am afraid to make a bank account because i think that they collection agency will take all of my money. It it legal for them to do that?

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Did the company already intercept your state income tax refund or are they just threatening to do so? Do they have a court judgment against you? Typically, a collection agency can't just take your tax refund or your bank account without first going to court and getting a judgment, though there are a few types of debts where they can go after assets without first getting a judgment.

Have you checked your credit reports to see if there is a judgment listed? You can get your credit reports free once a year at

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