A family member got served with a lawsuit for an old charge-off from a Big Bank credit card that she stopped paying on in Dec 2008 due to a job loss. She was unemployed for over 1 yr. Acct was recently sold to a debt collection co. & she was served with a lawsuit a week or so ago.
When called, the collection agency alleges she made her last pmt in June, 2009. She denies this and she challenged this with the credit reporting agency. They contacted Big Bank and Big Bank said they no longer have any records. On her credit report it shows no pmts all year (2009) EXCEPT for Aug 2009. She was still unemployed then and is sure collection agency illegally re-aged the account so they could try to collect on it or Big Bank reported a pmt so they could sell it. How should she proceed?