Under Federal law you have the right to challenge a Creditor or Collection Agent to "validate" any debt they are trying to collect on. This means they must produce, among other things, a signed contract or application complete with the terms and conditions of the loan, and the bookkeeping procedures that got them to arrive at the amount they are asking for.

If they fail to validate, they must stop reporting the debt to the credit bureaus and stop calling you. At the same time you demand the Credit Bureau "verify" the accuracy of your disputed account with the Collection Agency. If the Credit Bureau legitimately contacts the Collection Agency and are told you are disputing the account. The Credit Bureau must remove the disputed item from your report. If your alleged debt is not removed, either the Credit Bureau did not legally verify the debt, or the Collection Agent lied to the Credit Bureau. Here's a little flow diagram to help you sort out the debt validation process. You need to start the Credit Bureau process along with the Collection Agency process at the same time.