Merchandise-Direct Marketing-Contiuity Subscriptions Promised a $1,000 gift card if subscribed to magazines and never sent either Internet, Georgia

On May 31, 2010 I received a phone call stating I had won a $1,000 gift card to use online if I signed up to receive magazine for the next 2 years the company said they would send me through regular mail my gift card and a list of magazines to choose from to subscribe to within the next 5 business days.  I verbally agreed because they stated I had 3 business days to cancel if I decided to.  After hanging up the phone I told my husband about the offer he advised me to call back and cancel so between 3:00-4:00 pm on May 31, 2010 I called the company back and canceled the subscriptions before they could charge my Mastercard $34.24 every month for 2 years.  I also called my Mastercard account and canceled that as well since the company told me I had 3 days to cancel before they would charge anything to my Mastercard account. 

On July 2, 2010 I received a phone call from the Merchandise company stating they had turned my account over to Brittany Jones head of collections because I had not paid $774.00 on my account.  I stated that I had called and cancelled the account the same day I signed up they stated "We never received such a phone call and we can go around & around about it all day but its our word against yours."  Then they told me to fax them a copy of my Verizon phone records to them in order to prove that I canceled when I tried to do so they have blocked their numbers incoming and outgoing so they are marked Unavailable on my Verizon account and can't retrieve the number I called to cancel. 

On June 30, 2010 I received my Mastercard statement in the mail stating that $34.24 had been billed to my card on May 31, 2010 3 days before they told me it would be charged and after I had already called and cancelled the magazine subscription.  I called and canceled my Mastercard account May 31, 2010 but they had already charged the 1st payment to the account.  I have never received any form of gift card, any magazine or any information from this company.  I would like my money back and this company to stop harassing me by phone or in any other way as well as my magazine subscription cancelled for a second time and records proving that its cancelled.