I also have gone through this. Now, I will tell what I did, and so you know, it is now removed from my credit report. To begin: I applied for a new credit card around December 15th, and was denied for a bad debt collection notice. After accessing my credit report I found a collection notice from NCS of Oklahoma for $180.
First of all, look up how to write a letter denying a debt (google it, you'll find some information) Make sure to mention the FDCPA. The woman I spoke with at NCS demanded that I prove I don't owe the debt and that federal law gave them the right to demand proof. This is a lie, the FDCPA states a debt collector bears burden of proof. So if they use this tactic on you, make sure to include this in your letter. MAKE SURE TO SEND YOUR LETTER TO THE COLLECTION AGENCY AS A CERTIFIED LETTER requiring a signature.
I also have a letter to send to the Oklahoma state attorney Generals office as well as the Indiana State Attorney Generals office. These will include all documentation from the ordeal, postings from this and other websites, as well as my certified letter receipts and return receipt. DO NOT GIVE IN, because within a week of receiving my letter ( i know the date from the return receipt of the certified letter) this collection is no longer on my credit report.
Stand up for yourselves and if you want any tips from me please feel free to email me at S M N(number 2)K@ AOL.com (replace the (number 2) with 2 and remove spaces I type it like this to help reduce unwanted spam or BS)