Collections Agency still writing after debt paid

[Propirate]

Five months ago I got a letter from a Collections Agency (CA). Though I disputed the debt with the CA and with the company, I reluctantly paid the debt to the company in which I owed (did not pay the CA). I received a letter from the finance director of the company stating that they received my payment and my new balance is $0. In the letter he also stated that he would "communicate accordingly with the collection agency to insure that no further action is taken on their end." Included in the correspondence is an updated invoice and receipt showing my payment and a zero balance.
Today I received a letter from the CA stating that my account is seriously past due... etc. etc. with no indication I made my payment to the company.
What are my rights? Can I sue the company for continuing to report me as a debtor when I am not? More importanly, how do I make sure this does not get on my credit report? Do I have a recourse of action against the CA for harrassment since the debt was paid FIVE months ago? What do I do?

 

[seniorjudge]

How long has it been since you paid?

When you paid the company and not the collection agency, then that screwed up everyone's records and it will take a long time to get this straightened out.

 

[Propirate]

My paid receipt is from March 16, 2007... almost 5 months. So it may take a long time, who do I take this up with? The Collections Agency or the company? I am planning on taking it up with both...

 

[wenkat]

I had a similar scenario with a CA once. As long as you still have copies of the letter confirming payment and the updated invoice, make copies of these and send to the collection agency. If you have copies of the check or money order you paid with, make a copy of this as well (be sure to cross out your account number if it was a check!). Send all copies to the CA with a letter stating the debt was paid in full, here is your proof, and if they continue to harass you illegally over a paid debt you will file complaints with the appropriate authorities (I believe the FTC oversees collection agencies, but double-check this). Be sure to send your letter certified mail, and keep copies of EVERYTHING for yourself as well!