Is it legal for a bill collector to threaten freezing my checking account order to collect the debt?

Is it legal? No, not unless the debt collector can legally take the action they are proposing Example - there is no wage garnishment in North Carolina so a debt collector cannot tell you they will garnish wages because it does not exist for most kinds of debts (it does for child support or student loan debt). Same is true for freezing your bank account. A debt collector can take no action to levy on your bank account until the creditor gets a judgment against you. And even then they cannot garnish your bank account right away. The creditor first has to serve you with a notice of rights to have exemptions designated and motion to claim exempt property. Only if you did not take steps to protect your bank account could it be seized. However, I have questions as to whether the debt collector here could legally take any action at all against you to sue, let alone levy your bank account. What kind of bill collector is this? You indicate that the debt was sold off 5 years ago? Is this an NC debt? When did the debt become delinquent? The statute of limitations is 3 years in NC for most debts. You indicate that the bank (do you mean credit card issuer) sold the debt off. I presume this was to a junk debt buyer. If so, then the rules in NC make it impossible for a junk debt buyer to sue you once the statute of limitations expires as per NC law. I would recommend jotting down the number and doing an internet search on it. Just type the number in the search box and see what pops up. You should find the name of the collector and once you have that you can go to the company website and get their address. In the letter, I would tell the creditor not to bother you anymore about the debt as the statute of limitations has expired (assuming that the debt was last paid 3 or more years ago and that this was an NC debt). I call these letters "drop dead" letters because you are basically telling the junk debt buyer to drop dead because you are not paying. If you do an internet search for "drop dead" or "cease and desist" letters you will probably find free samples. I would send the letter via certified mail return receipt requested and keep a copy for you. The other thing that troubles me about this is that it could be somebody like a payday lender. Payday loans are not legal in NC but most of the payday lenders are overseas and could care less about violating federal and state debt collection laws. In such case, a letter will not work. Under no circumstances though should you make any kind of agreement to pay on this debt. If you do, you run the risk of reviving the statute of limitations, thus paving the way for the debt collector to sue you.