ALW Sourcing, LLC NCO Financial Listed a debt on my credit report from 5 years ago that was paid 5 years ago Baltimore, Maryland

While completing bar applications, I discovered a debt on my credit report- I had no idea where it came from.  I called the company- ALW Sourcing/NCO Financial to inquire.  They told me that it was from a hospital bill that I had never paid. I requested some documentation of the debt, and proceeded to call the hospital to find out why I never received any notice of an outstanding bill.  The hospital did not have any information for me about any outstanding payments.  Instead of sending me, as requested, some documentation of an outstanding hospital bill, ALW/NCO sent me a settlement offer, which would allow me to settle my debt for 40%.  I was completely floored.  The very next day, I filed a complaint with the NYS Attorney General complete with health insurance payments and cancelled checks paid to the hospital, of which I allegedly owe another $500.   I received a response from the Attorney General that my complaint was not properly filed with the consumer protection department, and that it had been forwarded to the health care department.  That troubled my a bit, since this has more to do with fraud than health care.  I really hope that something gets done so that this con-artist company does not hurt anyone else.   I plan to also file a complaint with the BBB.  Someone needs to take this company down.