AllianceOne medical collection - where to begin?

Hi!

Back in September 2010, I went to the emergency room. When the bill arrive in December, I paid it in full. I recently viewed my credit report and was appalled to discover a collection account from AllianceOne (presumeably for medical bills) in the amount of $1030. The account was posted in March.

I haven't received any form of notification from the CA. No letters, no phone calls. I have moved twice in the last six months, so I'm not suprised they weren't able to contact me by mail. But not even a phone call?? This is just hitting me out of nowhere, and destroying my credit. My credit score plummeted 170 points, and my credit card limit was diminished from 11k to 4k.

Steps I've taken:

1. Sent a letter requesting a PFD. No response, but after a little more research, that's pretty typical for AllianceOne. It seems like they just don't do PFD.

2. Called the hospital listed as original creditor on the account. They claim to have no record of the bill, but they *do* have record of the bill I already paid. They directed me to call AllianceOne.

3. Called AllianceOne (and after 8 different phone calls because I was transferred multiple times and no one could find my account), and was told that I needed to pay and they would not negotiate a PFD.

4. I am sending a letter requesting verification this afternoon. I am including a statement that says "Note that sending a computer-generated print out of the total you claim is due is unsatisfactory as proof that I owe the debt (see the enclosed advice letter from the Federal Trade Commission) and will be rejected as a validation of the debt.", because I've heard AllianceOne will only send a computer-generated print out of what they think you owe, and I've found an FTC advice letter saying that is inadequate.


So, my question is - given my circumstances, what's the chance that AllianceOne will be able to prove the debt is mine? The hospital claimed to have no knowledge of the debt, and I never received a bill or notice from the collection agency. If they can't prove that I owe the debt, it is my understanding that they need to delete the debt from the CRAs and close the account.

I am willing to pay the debt in full, regardless, just to fix my credit. I'm even willing to pay MORE than they are asking (I made the offer yesterday when I spoke to a representative and I was given a supervisor's voicemail). It's making me sick to know that years of building good credit is just gone in a couple of months, and AllianceOne is 100% unwilling to work with me.

Is there anything else that can be done??