What should or can I do?

They are scamming you. Who is the collection agency?? File an AG complaint!!!

It was the Law Offices of Curtis O. Barnes. I kept disputing that the debt was mine because I didn't know what else to say. She just kept saying I paid them and I know I didn't. She then said someone probably paid it on my behalf and I laughed.

Have you sent a dispute IN WRITING??????? A dispute is not valid if you simply verbally tell them you are disputing the debt.

You say the debt is from 2003. When was your last payment?? What state do you live in? Have you checked your credit report???

http://www.locob.com/contact.cfm
This is their contact information. Send it certified mail, return receipt requested.

The last payment to the cc was 2003. The collection agency is trying to say I paid them last year which is not true. I didn't know if I verbally accepted the debt if that starts the SOL again. How should I dispute it?

You never did say what state you are in so I am going to assume this is out of SOL.

Simply tell these guys

I demand that you cease and desist all contact in regards to this alleged debt since it is well outside the statutue of limitations for my state and is time barred.

Hi Nick,
Do not make any payments even if they pressurize you. If you know the debt is not years and they're not able to validate, then they're trying to scam you. You should do SOAPLADY has advised.