The respondent is not telling you the truth. First a foremost, if you were making payments of any amount the collections agency in refusing said payment make the debt void. Unless you've sign an agreement. Also, any debt that a collection agency buys( for pennies on the dollar), should be researched for proper ownership. There are too many to count that don't even own the debt at all. File a complaint with the consumer protection agency. I don't believe it legal to wipe out your entire accounts. You need bills of sale for the debt. They already had a lot of people in Idaho paying for debts that theses collections agencies don't have bills of sales for. I know it happened to me. I went to count, some of our judge aren't even vetted properly, they aren't qualified to be involved in judicial matters in the least.

You are really sorry , thanks for your concern, did you not read Id been paying this off the best I could ??

".. then suddenly they garnished my checking and savings account . Something about this is illegal or skirts right by it."

Garnishment is one of the collection tools allowed by law on unpaid accounts.  They don't notify you, as you would probably withdraw all funds from your accounts to stop them. BTW, the collection agency is not the one responsible for "people living homeless in their cars" the debtor, you, is responsible. Sorry for your hardship, but they have a right to collect by numerous means.  It IS their money.