Rights following collection

[drwahw]

What is the name of your state? Missouri
I had a business loan from my bank that was turned over to a collection agency. I paid off the debt through the agency, but a few years later when applying for a business expansion loan I was told that I had an outstanding balance on the loan, and the payment of about $1200 was withdrawn from my business account, I was told by the bank that this was a factor in being denied the loan. When I queried it I found out that there was a balance of about $36 after the account was sent to collection that had racked up interest and fees, I had never recevied notification in the ensuing years. I'm flabbergasted, is this SOP when an account is turned over to collection?

[debtcollector`]

Shouldn't have used the same bank.