Collection agency listed it as five collections at $40 DOLLARS IS THIS LEGAL FOR ONE BILL?

Yes it is. After a bank loan goes into default, the bank turns your file to a collection agency and they try to collect the money from you. Now depending on how long it's been in collections, a collection agent may offer you to pay a settlement or small payments. The collection agency then gives the money back to the bank and gets a percentage. Try not to miss payments on any debts, because it stays in your file for years and ruins your credit.

No, that's not legal. A collection agency cannot break the bill down ($400 for example divided by 10) and sue you 10 times for $40. They sue for the whole.

It depends on exact what the credit report shows. It CAN be listed as separate late payments, but not as separate debts.