Can a collection agency put a hold on your account?

I made payment arrangements with a particular collection agency. I was late with one payment and they put a hold on my checkings and savings account for the total amount of the bill. They refuse to take the hold off or let me continue my arrangements. Now, all of the money in my savings is gone and my direct... show more I made payment arrangements with a particular collection agency. I was late with one payment and they put a hold on my checkings and savings account for the total amount of the bill. They refuse to take the hold off or let me continue my arrangements. Now, all of the money in my savings is gone and my direct deposit from my employer is gone and will be until the entire balance is paid off. Was this legal? If not, what should i do?
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