Thanks for all the replys.  I didn't see anything on Clarkhoward.com that would tell me how, what, where to file the right forms although I did see they have a consumer support # I may try after Thanksgiving.  There is a lot of other good info on his site though.

I can't decide if it's better to give $1,100 of my hard earned money to an extortionist, or $4,000+ of my hard earned money to a Lawyer.   Hard for me to see the difference in the two at this point.

I am 100% in the right but how do you prove you didn't ask for nor recieved a service.  I don't know how to prove that.

I thought about trying to personally contact the owner of the debt collection agency and tell him I'll pay him the money if he will donate an equal amount to the Salvation Army.  It's doubtful he would do it, but you never know and I'd feel a whole lot better about being out 1,100 dollars if I knew the money went to the SA. 

I am not familiar nor comfortable in a courtroom, and this is all new to me.  In some ways I would like to learn the process more so I don't feel so helpless should anything like this ever happen again in much the same way someone might want to learn how to shoot and get a firearm if they were the victim of a violent crime.

P.S. where is Judge Judy when you need her? :>)