Hi tiddy3,
Try to negotiate with them. If you have not paid the amount to the first collection agency, by any reason, it means you still owe the debt. It may damage your credit report.
You can send mails to the collection agency asking for some documentation that proves you owe the amount to them. They are bound to reply a debt validation request, failing which just makes their demand unfair.
If you find it difficult to negotiate with them, you can take help from some professional consultants who will negotiate with your creditor on your behalf and try to settle the debt at a lower amount offering you easy monthly installments to repay it.
Free counseling is available with this site also. You can try it, since it has been proved beneficial to many of this board.
Regards,
Bryan