Morgan & Pottinger, Louisville KY
What you should necessarily do right now is get in touch with M&P and set up a payment plan because if you don't start paying now, they are going to be coming after your paycheck. In the meantime check in with the county court and cross check the docket number just in case. You must have been served at some point of time (which might have been served at your previous address or something) and obviously since you didn't know, you didn't show up in court and they won a default judgment against you.
When money was being taken out of the bank, was it against a garnishment order?
When my bank in Kentucky (June 2010) sent me the letter that money ($70) was taken from my account they also attached a pink copy 'Order of Garnishment (Non-Wage)' from Commonwealth of Kentucky, which looks ligit to me and evidently was, considering that the money was taken.
I pulled and printed my credit report again today and there is still no sign of public records of any kind and no companies showing as bad debt.