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I agree with CD. Hire an attorney. Collection agencies are bottom dwellers and they will tell you anything to get your last dime. In California, there is a very powerful State Credit Dept that kicks ass.
I know of one Calif Collection Agency that had its license pulled for actions similar to what you are experiencing. NEVER make deals with collection agencies. Even though the creditor, for instance, Neiman Marcus, may have turned your account over to an agency, contact NM first and tell them your situation. It is worth a shot, even when they want to refer you back to the credit agency.
Most attorneys will talk to you for free and even make a call or write a letter to help you. It's a good thing to have an attorney for a best friend.
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