Yes, they can. Sometimes, it is written in your contract you signed that you have given them permission to take payment from your accounts if you aren't paying. Otherwise they have to get a judgement. I believe that the levy will not be released until the account has been paid or you make solid arrangements with the lender.
No. A collection agency can not freeze your bank account. Only a judge could do that.
It is possible for the collection agency to put a lien on your bank account. Before they can do this, they must go through the proper procedures first.
Once a collection agency has gone through the procedure to garnish your bank account, they can do so as many times as necessary until the debt is paid.
If you are sued, then yes. First, the collection agency must try to collect from you. Then they can sue you if you don't pay. If they win, the judge can issue a judgment against you. And that is how they can freeze your bank account.
A collection agency in any state would need to notify you first.
NO NO NO
No, it is illegal for a collection agency to garnish or freeze your account for any reason. The only way your account can be garnishes is if you owe taxes or child support. If a collection agency threatens to do this, tell them that you are aware of the Credit Reporting Laws on this matter (there is legal ground for this matter).
Well in Canada they cannot, unless it is a joint bank account or the family member co-signed for the loan.
Agency cant freeze your bank account at all, They can go to court asking to freeze your account, then a court order only can freeze you account, an account cant be freezed by any third party order.
A collection agency, or any party, can only freeze your bank account IF they have sued your first and won a judgment against you. If you file for bankruptcy, it will not immediately release the levy on the account. The court that rendered the judgment must be notified of the bankruptcy filing, as well as the judgment creditor. The account could remain frozen until the outcome of your bankruptcy. If your bankruptcy, and the judgment debt is discharged, then the bank account must be released. It is possible to release a levy before discharge, but it will usually require the bankruptcy attorney to do it.
If your account was garnished by a govt agency(i.e. the IRS). Then the IRS needs to put that money back into your account not the bank.