While out bush hogging tonight I had a wooley worm drop from a low branch and down the back of my shirt. This thing has about itched me to death. It's kind of like touching a cactus or working with fiber-glass insulation. This worm was white with a black ring. I'll post a pic tomorrow if I can find another one.
A lot of "hairy" caterpillars have spines that either itch like mad or downright sting. My friend as sitting on the grass doing some gardening and inadvertently put her hand on a saddleback caterpillar. Made her hand sore and stiff for the rest of the day. I agree with Scotty, sounds like a hickory tussock moth caterpillar. That can itch like poison ivy.