Payliance Payliance/aka Security Check Illegally trying to double-dip! Oxford, Mississippi

I returned to grad school and needed a student loan. My credit report showed 4 bounced checks totaling $47 altogether from almost 10 years ago for which Id never gotten any notification from my bank, from the payee, nor from the collection agency. Four years ago I paid the $47 plus fees totaling $140 to Security Check. I wrote to Payliance who claim they purchased Security Check and received no response. Then I called them only to discover they had no intention of clearing my credit and demanded an additional amount of $240 in lawyers fees, along with the additional $47, plus $140 for a grand total of $420for four checks amounting to $47. This debate has continued for over four years and my credit remains negatively affected. What can I do?