Hollywood Video sent to collections,yet company owes ME money for monthly service I didn't get to use Fairfield, California

I had an account with Hollywood Video on Texas Street in Fairfield, CA a little over a year ago. I just received a letter from A.R.M. collection agency stating that I owed $37.95 in late fees on videos returned over a year ago. This is not true. In fact, the company owes me money, because I had a monthly account for a certain amount of videos rented a month and the last month the money was paid but I never got to rent the videos because the store closed. I even went in and talked to the people there right before it closed to return some other movie and they told me the account was clear and that I would receive credit since I had already paid the monthly fee and wouldn't get to rent my movies due to the closure. They would not have continued to allow me to rent movies if it wasn't.I contacted the collection agency and they wouldn't give me any information on how to contact this company. The nearest store that I know of doesn't answer their phone after repeated calls, and I sent an email through their "contact us" link....still no communication. This is now on my credit report and I am thoroughly pissed off and sick to death of getting screwed by people!