There may be ways to deal with this. Consult with experienced attorneys in the state where this occurred.

Put your demand to the company in writing. Yes it could be a class action.

A lawsuit. Keep in mind there are strict deadlines to file lawsuits.

Showing you are uncollectible may encourage them to not sue.

One question is are the fees calculated before deducting for expenses or after. Yes it seems excessive based on the facts you state.

Consult with experienced debt collection defense l attorneys in the state where this occurred.

You need to make sure your insurance company gets a full release for you when they settle the case.

Yes you can negotiate to attention to get a lower amount. As for validity, check the court records and your state’s laws.

Make sure you get the agreement in a signed writing for what they will not do, such as enter a judgment and they will do such as dismiss the case....

You can use discrepancies to you benefit to challenge their fees debt in court.