Damian,

I goes against my grain to think that anyone would pay a debt that they do not owe, particularly when you made the effort to pay the sum out in the first place. It seems that the debt company is just trying to screw you again (and yes they would do that).

There are a number of options open to you. Firstly obtain a copy of your credit report. This can be done through Baycorp Advantage and costs about $20 for personal reports. The reports used to be free but I see that they are now charging for the reports. http://www.baycorpadvantage.com/

If there is an error on your report you should report it to Baycorp Advantage as soon as possible . The legislation allows them up to 30 days to clear the error but they reportedly can clear it much faster particularly if you can provide documentary evidence.

I would also contact the debt company and tell them that they should advise Baycorp to take you off the list immediately and if they do not report them to the ombudsman.

Of course all this depends on the amount of the debt. If it is relatively small then it may just be easier, although unpalatable, to pay the amount.

Hope this helps