Thank you for the additional information. I am sorry to hear of your dilemma. I realize how frustrating this is for you and I hope to provide you information which is accurate and useful, even though it may not be the news you were hoping to get.
Unfortunately, the statute of limitations on the claim is 5 yrs. So, they can sue you to collect this if they want. Whether they will actually file suit to collect this small amount is up to them. If they do, though, you will need to find some proof of payment or they will get a judgment.
Check your bank records for cancelled checks or withdrawals at that time in the same amount.
Other than that, of they report it on your credit, send a letter to the credit reporting agencies reporting the item and let them know it is disputed and provide evidence of payment.
You can also try to negotiate a settlement for a smaller sum. Just make sure to get a release if you arrive at terms of settlement.
I am sorry. I wish I could tell you otherwise, but I do not want you spinning your wheels on this or incurring additional liability.
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