I had a levy on my bank account then suddenly the levy was released, but the judgement is still on my credit report what does this mean

Yes, if you have a judgement against you, (even if it is paid in full) it will appear on your credit report, since it shows a legal action taken to collect a debt.

The credit report is not connected to what the bank does, it is merely a report of what has happened in the past.

Why was the levy dropped? Was some arrangement reached?

You have a legal right to have inaccurate or questionable reports on you credit removed or modified.

Disputing Errors on Credit Reports | Consumer Information (http://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports)

Credit Repair Services | 2015 Reviews & Ratings | BadCredit.org (http://www.badcredit.org/mbl/credit-repair/?utm_source=Adcenter&utm_medium=PPC&adid=5156369557&utm_term=%2Bdisputing%20%2Bitems%20%2Bon%20%2Bcred it%20%2Breport&utm_campaign=BCMOBYRepairBroad&utm_content=CreditReportDispute&match=b&referrer=BingYahooOnly&network=Search&query=how%20to%20dispute%20items%20on%20credit%20r eport)

How to Dispute Items on a Credit Report | eHow (http://www.ehow.com/how_4516867_dispute-items-credit-report.html?ref=Track2&utm_source=ask)

How to Get Stuff Removed From a Credit Report | eHow (http://www.ehow.com/how_7379619_stuff-removed-credit-report.html)

They can report whatever they like but it's up to YOU to dispute it. CYOA (Cover Your Own Arse!)