I am furious... what should I do in this situation.

I've been working at my company for 1 1/2 years. I had a fight with a cell phone company and didn't want to pay the bill. It went over to a collection agency who has been calling me and calling me.

Then this collection agency had the audacity to send a fax over to the office payroll manager to confirm my employment. The problem was that a co-worker was checking the fax and brought it over to me wondering what was going on?

This fax said that I was delinquent and owed $500 and was refusing to pay it. I'm not going to name names because I don't want to create any legal problems, however, this is really serious to me.

Now this co-worker, even though I trust her, could go around telling people what she saw on this fax. It's really embarrassing and I've been working really hard to get a promotion lately. I need a promotion to make more money to pay off my bills.

What do I do with this collection agency. Have they broken a law? How can I complain against them?