Past Employer placing Collections on me. Debt was paid in full 2004.

[ectanner]

What is the name of your state? Kentucky

I had a tuition reimbursment agreement with a previous employer. Because I did not stay with the company for the agreed upon 5 years, I was required to pay it back. It went to collections. In November of 2004, I paid the entire debt in full to this Collection Co. It was removed from my credit report and Equifax sent me an updated report showing that the debt to ****** Co. had been paid - balance due=0.

Now, two years later I have a completely different Collections Co. trying to collect on the same debt, except that it is now $8000.00 higher. I contacted the original company that collected the debt and they sent me a letter confirming payment of the account and payoff to ****** Co. They have insisted that this debt was handled properly.
I faxed Collection Co #1's letters along with the Equifax report to Collections Co #2.
#2 says that my previous employer has never heard of them and has never filed collections before now. They do not care that I have this documentation. I find it very hard to believe they would let 5 years go by before placing this with collections.

Collections Co #2 has been ordered to file this with the Credit Agencies. They keep telling me that the burden of proof is on me. I have the cancelled check and bank statement to the original payoff as well as the other documentation. The employer refuses to accept anything other than payoff. This previous employer is a LARGE copany.

Is there something I am missing here. I am making phone calls all day and not getting anywhere. Each one is calling the other a scam. Neither one will talk to the other.

If I need an attorney, what type/specialty/field should I be looking for?

Could someone please help me before I have a nervous breakdown?
Thank You.
David

[debtcollector`]

Send company #2 a copy of the your canceled check and payoff letter.

Dispute the entry with all three CRAs including a copy of the canceled check and payoff letter.

DC

[ectanner]

I have already faxed Company #2 copies from Company #1.
Company #2 still insist that their client (previous employer) has never filed this claim before nor have they ever heard of Company #1, therefore, don't care what documents I have.

I will take your suggestion regarding the CRA's.

Thank you for your help.