A past co-worker of mine went through this same thing. She defaulted on a car loan, which was repossessed several years ago, and the creditors took it to a court and got a judgement to withdraw the funds from her checking account.
How did they get her checking account info? Probably via SSN. Wiped the acct dry and she still owes money. She had to cancel her auto-payroll deposit and opened a savings acct under her child’s name because of the minimal requirements to have it open. The bank explained to her “off the record” that if she opened another acct, chances were she would find herself in the same position. With the savings, she can still csh her check without any fees and I think because the acct has a minor as the main, it cannot be touched by any creditors of the sort - but just incase, she keeps a minimal amount in there. The bank also advised that she not open a joint acct that would require her SSN. I believe someone can open an acct in their name and have her as an authorized signature. I am uncertain if creditors can touch an acct set up that way.
IMO, this is awful and the governement should step in to do something about it - what happened to payroll garnishments? I’m not saying that her debt should be forgiven, but c’mon! Having your whole checking account wiped out without notice, causing hundreds off dollars in more debt because the person cannot pay their rent, groceries, gas, etc - not to mention all the overdraft/return check fees she had incurred because of this, that is just in bad taste (and the credit agency also tacked on several thousand dollars of interest rates on top of what she owed) and maybe even worse than being knocked off by the maffia.
Oh, and I believe she received a letter of explanation within 10 busn days.