Handi Cap Workers Of America Reported me to Special Collections Bellflower California

I was contacted two weeks ago about a unpaid bill from Handicap workers of America for a nightlight that was supposedly delivered to my home in Dec. 2012. I have never received a bill and I have no recollection of ordering or receiving such. I was told that the night light was $29 but now I owed $242.00. Because I do not know of any such delivery, I asked them to describe the merchandise and asked if they had ever sent a bill. They were unable to do that. I offered to pay the $29 in good faith but they saod they could not accept it. Two weeks later I get a letter from a collection agency for $369.94. I called them and explained that I have no recollection of receiving such an item and their only solution was to split the payments and pay half this montha dn the other half next month but payment must be made within 3 days. This is a ripoff. Neither me or my husband know anything about this. We have never gotten a bill in 3 years and they will have to take us to court because we cannot pay.