Can a creditor, even if a bank put a hold on my social security benefits? I am being threatened with this for an unpaid payday loan. They are threating that it was fraud. Until I can prove my innocense can they do this?

DId you actually have the payday loan? If you did... how would not paying it not be fraud?

The loan wasn't paid in full & I changed banks.

Talk to your bank about how to stop creditors from getting SS funds specifically.
But I too am curious about your 'innocence.' Changing banks means you let your creditors know. Why didn't you keep paying?

The loan wasn't paid in full & I changed banks.

That constitutes fraud... why would it not?

Have they resumed your old agreement or are they taking larger amounts? You need to talk with everyone involved and see if you can make an arrangement. If they are taking out astronomical amountsthey should have taken you to court for a judgment I would think

They haven't taken out anything. They are threatening something, it doesn't really matter what they call it, because if they have to go to court to get a judgment, you will owe HUGE EXTRA LEGAL fees no matter what.

You can't just change banks, sit back, expect not to pay a debt, and call yourself innocent.
You also would be a complete fool to let this get to the court stage.
So work out a payment plan!

The loan wasn't paid in full & I changed banks.

So you agreed to a direct debit from your checking account to pay the loan and then closed the account and changed banks without informing the lender?

And you think that is not fraud?

I agree with Joy, work out a payment plan.