Don't worry and it is very easy to deal with. Dispute the item with the credit report agency, telling them to investigate it since it is not yours. In the meanwhile tell the collection agency and Crappy Tire if they cannot provide a solid proof regarding the debt to you, they will have to remove that item from your credit report. Tell them if they do not comply, you believe they want to escalate the matter and you will file a court action against them for forging documents and defamation. If what you are telling us is 100% true, they will remove it for sure.

Hello... I really need some advice on how to handle a little situation...I'll give a brief run-down.
- Was employed in an automotive shop in 2002 (we'll call them Crappy Tire) Tools were given to me as as a bonus on a couple occasions. I am accepted into a college program in the fall of '02 and resign from this job... employer does not take it very well.
- In the spring of '03, a local collection agency contacts me saying that I owe this employer $700. I insist I do not owe this money, and after a few phone calls I request that they send something proving that I owe anything. No proof is ever received, and the phone calls stop. I foolishly assume the problem has gone away.
- December 2008... applying for a car loan, and find out that there is a bad debt on my credit record. I immediately purchase an online Equifax report to find that Crappy Tire is listed under the collection agency debts... and the debt has increased due to interest from $700 to $1500!

I called this collection agency last week, and they could not even find my file. The guy said that he would need to go 'down in the basement and dig it up'. He called me back on Friday, but I have not returned his call.

My question is.... if they can't provide proof, how do I get them to wipe out the debt? I can't imagine they have anything other than a list of what I was given... unless someone forged my signature on something!

Or for sake of making this go away quickly (I need a new car!!), do I just negotiate with them and try and get the debt down below the original amount? (I'm not going to pay them $1500... even if i did actually owe money, that kind of interest is loan-sharking!)

Thanks for your input...