collection agency states I still owe money

new jersey
I was given a credit card at the age of 18 (1994), I didn't apply it was sent to me with a 3,000 credit limit. I was still in high school and not employed. I used the card for about a year, never maxing it out. Through college I payed for it, but stopped using it. The credit card company took payments out automatically. However they stopped. Now at age 25 I have heard from a collection agency stating I owe 5,000. It seems as though they left the last payment 5years ago and now I owe 5,000 in interest. They are stating that they will go to court. However it seems what they did should be more illegal than anything. Is there anything I can do and am I liable to pay that money. I own nothing so I don't even know what they could take me to court for.
Thanks for any advice or comments.