garnishment

Obviously they had a judgment against you. Did you know about it? Did you receive a summons? Did you answer it?

You must have documents which state that you've settled the dues with a collection agency. In that case, you should contact Bank of America (which, I guess, was your original creditor) and ask them to withdraw the account from collections as you've already paid off the dues. You can even fax/mail them the documents regarding the settlement of the debts with the first collection agency.

Yes, there has to be a mutual agreement regarding such settlements following a successful negotiation. It has to be there in writing and needs to be signed by you as well as your creditor. You should be able to present this signed agreement in the court of law whenever you'd be asked to show up.

Note: You need to be there in the court on the date and time specified in the Summons, even after you've reached a settlement.

Guys, this is not proper advice.

it does no good to contact BofA now and tell them it was settled with someone else, and then to ask them to remove it from collections, because this would have already had to go to court to get to this point legally.

Original poster--did you ever get a summons that told you that someone was suing you over this debt? If you did not, then you have a legitimate way to fight this. if you were never served the summons then you can file a motion to vacate judgment due to improper service. If you were served a summons and then you agreed to a settlement at that time, you should inform the court of this IMMEDIATELY. But contacting the creditor and asking that they pull the account from collections is a waste of time....

It is correct that you will need documentation of the settlement--do you have anything from them that shows the settlement they offered you?

Please listen to Skydivr7673 as that is very good advise.